Overview of the Animal Feed Industry
The animal feed manufacturing segment plays a significant role in the global food industry, enabling the large-scale economic production of animal proteins across the globe. Organizations in this sector manufacture food for livestock including poultry, cattle, and other such animals primarily from grains, proteins, and vitamins. Additionally, the growing demand for animal protein in developing nations has accelerated the growth of the global animal feed manufacturing sector.
The Business Challenge and Journey
The client, a leading animal feed manufacturing company, was looking at leveraging SpendEdge’s industry best practices benchmarking solution. The client was facing several issues related to their inefficient management strategies. The company’s supply chain management executives recognized the tremendous benefits of adopting the best practices in industry benchmarking. As such, they were looking at reducing the company’s risk profile by improving the efficiency of their overall operations by comparing them with the set industry standards.
To identify challenges in the supply chain functions, the market intelligence experts at SpendEdge carried out extensive research comprising interviews and discussions with prominent stakeholders in the animal feed manufacturing sector. The experts also compiled information across a wide array of reliable sources such as trade shows, company presentations, industry forums.
Why should you leverage industry best practices benchmarking?
Industry best practices benchmarking is a valuable exercise for organizations striving to enhance their operational efficiency and the effectiveness of the overall business operations. Industry best practices also exposes hard facts about the performance of your company while recommending ways to improve them. Moreover, best practices benchmarking done right is more than just a casual, anecdotal look at the competition. Determining which of the hundreds of metrics to focus on may seem tricky at the moment, but worthwhile pursuit. However, to succeed, organizations will have to develop a well-thought-out strategy to obtain the desired results.
Fundamental questions answered in this industry best practices study include:
SpendEdge’s industry best practices benchmarking solution offered relevant insights that helped the animal feed manufacturer monitor their performance and implement changes to drive profit margins. Our solution also enabled the client to identify, adapt, and implement the best practices that produced the best performance results in the animal feed manufacturing sector. Moreover, the best practices benchmarking engagement enabled the client to achieve breakthrough improvements in their overall performance. Furthermore, it offered relevant insights to better understand the market scenario, industry standards, and expectations.
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Animal feed industry challenges
- The availability of local proteins – In the global animal feed manufacturing industry, there is an increase in the pressure to substitute common protein sources like soybeans with less globalized ones.
- The use of additives and premix– Premixes as well as additives like vitamins, enzymes, or amino acids play a crucial role in ensuring optimum feed for livestock. Also, animal feed manufacturers who are not engaged in the ongoing war between additives and premixes may have to adopt either of the two eventually.
- The emergence of genetically modified organisms (GMO)– A major challenge for animal feed manufacturers revolves around the use of such techniques. However, genetic engineering offers benefits such as a reduction in prices of animal feed, increased crop yields, reduced need for pesticides, and enhanced nutrient composition.
Integrating the industry best practices into the organization will eventually result in the generation of valuable data that encourages discussion and sparks new ideas and practices. However, the approach to benchmarking can be as critical as the data. Organizations that successfully incorporate benchmarking practices into their processes by collaborating with key decision makers and personnel throughout the process will gain a competitive advantage.