Analysis of Food and Beverage Operations and Supply Chain Dynamics

This report comprehensively analyzes food and beverage operations, encompassing the food supply chain, production principles, and industry challenges. It explores the effectiveness of the supply chain, detailing processes from raw material sourcing to consumer consumption, including transaction...Read More

FOOD AND BEVERAGE
OPERATION

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Food and beverage supply chain effectiveness............................................................................4
Principle of production in food and beverage industry................................................................5
Sustainability problem which is created in the food supply chain...............................................9
Future barriers in the food and catering sector..........................................................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Food and beverage operation refers multiple activities which is completed by staff
member from purchasing groceries and raw material, ready food and beverage, keep stock of raw
material in warehouse, maintained service quality regularly, organized various entertaining
events and monitor the business. Operation is important in food beverage industry because it is
responsible for maintaining standard quality of food and services, food costing etc. in this report
will cover how the food and beverage supply chain can develop effectiveness. This report will
cover principle in food & beverage production. This report will cover process of food
manufacturing in industry.
MAIN BODY
Food and beverage supply chain effectiveness
Supply chain refers the connection of all individual activities like organization, resources
activities and technology which uses in the initiation and marketing of Food and beverage
product. This chain connects various people during delivery like delivery of source of raw
material to supplier, supplier to manufacturer, manufacturer to user thus delivery session
completes in single chain. Food industry plays vital role to provide good quality food along with
good services to customers. Supply chain is important in food and beverage industry. For
example delivery of raw material from farmer to manufacturing industry where it processes of
production, processing, distribution, retailing and consumption. Thus, food relocation from
farmer to consumer and money pays by consumer to supplier. Thus, movement of food and
money in food supply chain industry (Araci, Bulut and Kocak, 2017). There are various
methods of food supply chain management like transactional cost analysis, channel coordination,
network perspective etc.
Transaction cost analysis: This is financial model where analyses raw product prices. This
model assists to buy product at lower cost and sell product at high prices (Borges Lopes, Freitas
and Sousa, 2015). Supply chain manager plays vital role to gain profit in food industry to supply
raw food product at lower cost and delivers product at high cost to customers.
Channel coordination: In food industry, logistic department takes helps of supply chain
management to coordinate different type of customers. Through supply chain coordination
supports to reduce cost of transportation and saves more time. In channel coordination various
supplier are coordinated to each other by the help of supplier chains. For example supplier

supplies the food through transportation to manufacturer where manufacturer supplies food from
transportation to retailer. Thus, whole process is completed by suppliers.
There are various methods to improve supply chain food and beverage industry. For
example if industry started to plan about material requirement and aware to supplier about
requirement. In that state supplier can supplies raw material in specific quantity which leads the
lowest raw material inventory without giving impact on production. Thus, supplier can improve
effectiveness in food industry (Campillo and et.al.,2018). Another term supplier chain can
improve effectiveness in food industry to establish good relationship with customers.
Relationship can improve with customers by providing standard quality food to customers.
Principle of production in food and beverage industry
Importance of food and beverage industry:
food and beverage industry plays vital role where it involves various functions like
processing of raw food materials, packaging and distributing foods to customers. Food and
beverage industry includes various continent like fresh and prepared food in good packaging and
alcoholic & non-alcoholic beverage for customer consumption. Main goal of food and beverage
industry to maintain standard quality of foods and their services so that customer gets values of
their money (Davis and et.al.,2018). This industry also supports to mange food costing and
maintain restaurant and bars. Thus, food & beverage industry plays crucial role in food quality
and food prices. It supports to meet customer needs by offering various taste along with good
quality food in restaurant.
Principle in food production:
There are various principle which is follows during food manufacturing in food industry
which supports to maintain high quality in food manufacturing and make free industry from food
contamination. Thus, these principle helps to enhance quality of foods in food industry.Beside of
this there are various principles which associates from food processing like Heat transfer,
through heat transfer destroy microorganism. Thus provides food safety and shelf life through
destruction of harmful enzymes which leads food contamination. during food production. Mass
transfer is crucial part in food production where it transfers water constituent in food product
which leads preservation in food. Mass transfer involves in to migration where one phase
transfer into another phase during food production (Ferguson and et.al., 2017). Fluid flow
supports to transport liquid fluid from food product during manufacturing. Removal of heat and

moisture is another principle during food processing. Packaging of foods is a last principle
which is maintained by food industry after preparing food. Thus, food industry follows principles
during food processing and meets customer expectation. Through principles company maintains
quality of food during manufacturing.
Process involved in food manufacturing
There are various process which involved in food manufacturing. In food industry
completes various process like processing after getting raw material, conversion, preparation,
preservation and packaging of food products. Various process -
Handling and Storage: Handling plays important role in food manufacturing industry where
handles raw material, ingredient which uses during manufacturing and finished food products.
Thus handling supports in food processing (Nakaya, Uedono and Hotta, 2015) Storage also
important to store food for food processing. To keep seasonable raw food material prolong time.
storaging is important in food packaging where nitrogen gas purges to keep food safe from
contamination.
Extraction: extraction is important to extract food product like liquid and solid from foods
during manufacturing foods. Extraction is accomplished in various methods like crushing,
pounding, grinding , extraction by heat such as liquid and solid, drying and filtration. These all
process undertakes during manufacturing of food.
Production process: in this various process applies for food manufacturing like fermentation,
cooking, dehydration and distillation. Fermented product obtains by adding microorganism in
raw product. For example wine and spirits. While cooking comes about manufacturing process.
Vacuum sealed container is used to packing finished product. For example tomato paste
production. Distillation process uses to manufacture spirit.
Prevention processes: It is important process Which uses to prevent food from contamination
and provides assurity for consumer health. There are five methods to preservation radiation
sterilization, antibiotic sterilization, chemical action, dehydration and refrigeration etc.
Packaging: Packaging is important in food processing where it accomplishes by various
methods like canning, aseptic packaging and frozen packaging where canning is conventional
method. Products are sealed in can along with lid which gives protection from foreign particles
in food. While aseptic packaging is uses for food packaging where container and lid are
sterilized before packing food.

Hazard and prevention: Hazard analysis and critical control point (HACCP) is specially uses
for food safety in food industry where it gives importance to prevent hazard which can
contaminate food and can produce illness in human being. This method gives protection to food
from initiation (raw material) to finished products. HACCP is specially designed for food safety.
Food retailing and food logistics:
Food retailing refers the process of selling of foods along with services to customers through
various channel of distribution and gain profit from consumers. Retailer permits manufacturer to
produce good quality food and retail those products to consumers so that they give values to
retailer by paying good. While food logistic refers management of food transportation or
information from a place to another place (Ogunyemi, Ayios, and Spiegler, 2016 ). Food logistic
involves various functions like transportation of foods, inventory control, packaging and delivers
foods along with safety. Food logistic responsible for supplying raw material to manufacturer
then transport finished product to customers.
Both plays crucial role in food and beverage industry where both gives services industry
to customers by providing desired food material. Retailing of food assists to earn profit by
enhancing growth of food and beverage industry. Food retailing supports to retail finished
product to customers. Retailer focuses on manufacturing industry and gives information about
customer preference regarding product quality along with services. Through suck kind
information sup[ports industry to enhance product quality and improvement in taste so that
customers meets their expectation (Dopson and Hayes, 2015). Thus, industry gives values to
customers by providing high standard quality. For example restaurant which retail their food and
beverage products to customers with good services. As same food logistic also plays important
role in food and beverage industry where supports to transport food product and information to
customers and food industry. Basically food retailer and food logistic both are interlinked to each
other because food logistic transports raw material to manufacturer while finished food product
transports to retailer for retailing food.
Issue faces in international food and beverage supply chain
Benefits of food and beverage industry:
There are various benefits of food and beverage industry. for example food and beverage
industry promotes entrepreneurship to supply food so that they can retail foods in business
market. This industry also creates job opportunity for those people who is unemployed. Thus,

food industry supports to reduce unemployment rate in UK by providing job opportunity to
peoples. suck kind industry is promoted by government. Thus, there are various benefits of food
and beverage industry.
Challenges & solution
There are various challenges which is faced by food and beverage industry. Plastic ban is
present challenges of food and beverage industry because food is packed in plastic packaging
which is more convenient for customers but that's gives negative impact on environment and
public health. Food & beverage industry gets solution to solve issues by applying various
recycling practices in industry so that environment becomes free from pollution. For example
Nestle starts to use a hundred percent recyclable and reusable packaging.
Another challenge is the rise health consciousness among consumer. That's also big challenge
for food and beverage industry mangers because people become more health conscious due to
obesity and diabetes. Customers are started to demand for organic product in food. Food and
beverage industry focuses people concern regarding health (Taslim, 2017). In that state coco-cola
recently launches sugar free flavoured liquor for consumer who suffers from diabetes. Thus,
food and beverage industry overcome challenges which is faced by industry.
New technological trends in food supply chains
Different technology:
There are different technology which uses in supply chain management and new technology
leads world closer collectively. Various technology are-
Transaction processing: it supports to reduce suppler work and cost of labour. It enhances
information quality regrading new product and supports to update food and beverage industry. In
supply chain management raises volume of transaction.
Process automation in the warehouse: This technology is fruitful to keep calculation of
product quantity where scanner and bar coder facilities available. It is automatic warehouses
where this technology monitors all single item of food and mange in warehouse. Thus sup[plier
can supply product without wasting time.
Analytics: In this technology manager of food and beverage industry can track flow of goods
and can check item which is ordered by customer. These all processing can check by mobile in
easy manner. Thus, supplier doesn't have to write about entry and quantity regrading supplying
product. Warehouse automation depends on logistic sensor which is attached to truck's pallets or

box where it tracks air and humidity and temperature and alerts supplier regrading container and
food situation which is packed in container.
Impact of new technology: Food supply chain is improved by interruption of new technology.
New technology transformed way of supplies and reduce cost of labour and improves visibility
and supports to maintain human compliance. Transaction processing supports to give
information regrading product design. Logistic sensor supports to monitor product in warehouse
houses. Thus, above technology supports to improve food supply chains.
Food regulation, safety and quality control
Food regulation: it refers to aggregation of law and regulation which applies principles in food
manufacturing, distributio9n, and consumption. Main goal of food regulation is to protect
consumer from low quality food and provides growth in food and beverage industry. Food safety
act is organized in 1947 where minimizes risk of unsafe food product and provide high standard
quality product to consumers. It is most important in food drug industry because industry
manufactures food, so that they manufacture good quality food under this regulation.
Legislation in food and beverage industry: There are some legislation which is applied on
food and beverage industry. Food Safety Act 1990 is applied on food and beverage industry.
According to this act industry can't add anything and can't remove anything from food product
own and can't treat food in this way that creates problem on human health. This act supports to
maintain good quality food so that people become healthy after consuming food and beverage.
Under this act whatever food is manufactured by industry before supplying in market. it is
checked by analyst where they detect quality of food (Chen and et.al.,2015). If quality of food or
beverage is good then allow for further process. Thus supports to maintain quality of food.
Sustainability problem which is created in the food supply chain
Sustainability refers to provide high quality food along with safety where industry focuses on
packaging, to eliminate carbon emission and more utilization of water in food product so that
food product can sustain prolong time in market (Iqbal, Khan and Khalid, 2017). New
technology plays crucial role to sustain food product in industry. Sustainability supports to
balance among economy, ecology and social issues. Food and beverage industry starts to use
organic food continent so that product can sustain in food industry. Food industry also uses some
technology to enhance shelf life of food products like Coca-Cola company purges nitrogen gas in
liquor so that it can sustain for week.

Challenges and impact on food and beverage industry:
There are various challenges of sustainability which is faced by food and beverage
industry and it gives impact on the market economy.
Geopolitical risks: Food manufacturer have to relocate suppliers due to labour issues. Due to
relocation food and beverage industry have to pay extra tax due to political instability. In that
state industry have to change their product policies.
Environmental risk: food and beverage industry starts to manufacture hazardous free food
products for sustainable. For this process industry uses new technology, this technology gives
sustainability in product but enhance risk for environment by emission gases which can create
toxicity in air.
Thus there are lots of challenges which is faced by food and beverage industry. It gives
negative impact on market. Geopolitical risk enhances cost of product due to tax cause this
purchasing power of customary reduces. Environmental risk also creates problem for market
because food industries unable to promote their product in business market.
Future barriers in the food and catering sector
There are various barriers which can be upcoming challenges for food industry and catering
sector. These are-
health and clean label vs diet friendly customers: food and beverage industry can be faced this
challenges because now time people become health conscious rather to take healthy diet. In
future customer can demand food full organic or natural in food and beverage. In that stare
industry have to changes their food continents (Baran and Yıldız, 2015). It may be possible that,
they have to change their food production policies which can enhance cost of product. Catering
sector also get this challenges where they have to change their product according to customer
requirement.
Adapting to shift towards e-commerces: food and beverage industry can face this challenges
because now time people like to shopping online rather to go. In future can possible customers
like to prefer online food purchasing. Catering sector also can impact from this factor that they
have to changes their mode of transaction and mode of purchasing. In that state can enhance cost
of food delivery and customer can react on this.
Solution of future barrier:

Catering sector and food sector can overcome from these challenges. To starts to manufacture
organic product under policies which can get benefits in food and beverage industry. In that state
food industry can get benefits (Seyfettinoglu, 2016). For example coca cola company declared
that they will manufacture non-sugar flavoured liquor which can consumed anyone even person
is diabetic or not. While Nestle declares that they will take reusable packaging. It can overcome
above from above factors. As same catering sector can overcome from above factors by adapting
new technology in their practices which can supports to enhance purchasing power of customers.
Thus catering sector can overcome from e-commerce.
CONCLUSION
In this report has been concluded about food and beverage industry operation. In this
report has been covered supply chain effectiveness in food and beverage industry. In this report
has been explained about principles which uses in food processing and also has been covered
food manufacturing process in food industry. This report has been explained about challenges
and upcoming barriers which is faced in food and beverage industry. This report has been
addressed about food safety act and legislation which is followed by food and beverage industry.

REFERENCES
Books and Journals
Araci, U.E., Bulut, Z.A. and Kocak, N., 2017. The relation among experiential marketing,
customer satisfaction, and behavioral intention: a study on food and beverage
businesses. Economic and Social Development: Book of Proceedings, pp.361-371.
Baran, Z. and Yıldız, M.S., 2015. Quality function deployment and application on a fast food
restaurant. International Journal of Business and Social Science. 6(9). pp.122-131.
Borges Lopes, R., Freitas, F. and Sousa, I., 2015. Application of lean manufacturing tools in the
food and beverage industries. Journal of technology management & innovation. 10(3).
Campillo, N and et.al.,018. Food and beverage applications of liquid-phase
microextraction. TrAC Trends in Analytical Chemistry. 109. pp.116-123.
Chen, E and et.al.,2015. Implementation of non-regulatory food safety management schemes in
New Zealand: a survey of the food and beverage industry. Food control. 47. pp.569-
576.
Davis, B and et.al.,2018. Food and beverage management. Routledge.
Dopson, L.R. and Hayes, D.K., 2015. Food and beverage cost control. John Wiley & Sons.
Ferguson, M and et.al., 2017. Food and beverage price discounts to improve health in remote
Aboriginal communities: mixed method evaluation of a natural experiment. Australian
and New Zealand journal of public health. 41(1). pp.32-37.
Iqbal, J., Khan, Z.H. and Khalid, A., 2017. Prospects of robotics in food industry. Food Science
and Technology. 37(2). pp.159-165.
Nakaya, M., Uedono, A. and Hotta, A., 2015. Recent progress in gas barrier thin film coatings
on PET bottles in food and beverage applications. Coatings. 5(4). pp.987-1001.
Ogunyemi, T., Ayios, A. and Spiegler, V.L.M., 2016. Socially responsible purchasing practices
and supply chain performance in the food and beverage industry.
Seyfettinoglu, Ü.K., 2016. Analysis of relationships between firm performance and open
innovation strategies and stages in the Turkish food and beverage industry. New
Medit. 15(1). pp.42-53.
Taslim, M., 2017. To Determinants Of A Firm's Profitability In Food And Beverage Industry: