The Food and Beverage Industry

A U ilg|i|tlal! ood and Beverage — An Industry Challenged by Change Digital has a lot to offer the food and bev- erage industry. And we’re working with management teams from leading food and beverage companies worldwide to help them solve one of their most pressing problems — keeping pace with con- stant change and intense competition. Through this work, we’ve seen that your success depends on your ability to anticipate business trends, and respond effectively to ever shorter windows of opportunity. We've learned that to win market share and improve profitability you must manage change effectively. And we’ve learned how to apply our technology to help you succeed — whether your products are agricultural commodities or consumer packaged goods. Change starts with the consumer. Today, consumers’ needs are more diverse and are changing more rapidly than ever before. And consumers are looking for new and different products that meet their individual needs. The retail trade — your gateway to consumers — is chang- ing, too. Retailers have used the power of UPC scanning to become an important new force in marketing decision making. And many of your peers feel challenged to form information partnerships with the trade — partnerships that help them maintain a strong role in determining how trade promotion dollars are spent. Finally, manufacturing itself is changing. The advent of regionalized marketing has helped fuel product prolifera- tion and intense competition for limited shelf space. Manufacturing, logistics, and marketing are increasingly complex. Your company needs effective strategies for dealing with constant, rapid change in an intensely competitive indus- try, It needs the ability to mobilize diverse, widely dis- persed resources in response to fast-changing markets. Having a competitive edge in this ability can spell the difference between business success and failure. And work- ing with Digital gives you the flexible systems you need to develop and maintain this edge. Food and beverage corpora- tions have to respond to con- Stant change within every link of the product supply chain. Information Systems @@ The notion that man- agers just need more data is a myth. We are flooded with data. The real issue today is discovering how to use information sys- tems to get the right data and use it to strategic advantage. @®@ Larry Meador President Decision Support Technologies group your resources Ce MMM HT Proven Strategy for Capitalizing on Change It’s a fundamental business principle: there is opportunity in change. The only prob- lem is, it’s sometimes difficult to identify and respond to change before opportunities pass. This is particularly true for managers in large corporations that serve dynamic markets. Your company most likely maintains large, widely dispersed organizations for market- ing, manufacturing, distributing, selling, and developing products. All of these diverse functions have to work together effectively for your corporation to be able to respond in time to fast-breaking market opportunities. In the companies we work with, computer systems already play an important role in improving the performance of individual business operations. And Digital offers a wide range of computer solutions that meet the needs of virtu- ally all food and beverage industry functions. But Digital’s solutions are different from those of other vendors in one very important way. They’re built to operate in networked systems. Systems that speed the transfer of uu eT qa | 13 } } F ne information among business functions. Systems that make sure the right information is available to the right person. Systems that play a strategic role in improving overall orga- nizational performance for a competitive edge. For example, you can electronically couple marketing to sales, major distributors, or retailers for better marketing decision information. You can couple logistics to manufac- turing for improved production management. Or you can integrate all business functions to respond auickly to new opportunities. Over the years, Digital has invested billions of dollars to develop a style of computing that is uniquely suited to networked information systems. Based on flexible, enterprise-wide networks, a single family of compatible computing systems, and a comprehensive portfolio of soft- ware solutions, this style gives you the ability to integrate software applications serving virtually all business depart- ments into Digital’s industry-leading information environ- ment, ALL-IN-1. And we can provide you with just the support you need to get the job done through our software services, field serv- ices, and educational services organizations. We can help you choose the right computing solution for your needs, get it up and running, manage its performance, and plan for future system needs. When you have the capability to respond to change better than your competition, you welcome the challenge of fast- changing markets. Digital can help you make change one of your greatest allies. Information systems provide windows to all links of the food and beverage supply chain — from raw materials suppliers to consumers. Digital Solutions Helping Corporations Keep Pace in a Fast-Moving World Food and beverage corporations cannot afford to sit still. They operate in a world of accelerating change — driven by evolving markets, aggressive competi- tion, and even government regulation. They have to keep pace to survive. To help your company keep pace, Digital offers a wide range of computing solu- tions for getting maximum performance from every dollar invested in marketing, manufacturing, logistics, sales, engineer- ing, research, and administration. Plus the ability to integrate your entire corpo- ration for coordinated responses to fast- breaking market opportunities. omar nammes cies market information orders and market information distribution data manufacturing information EXTRA LONG - _ FETTUCCINE |) 2 ENRICHED EGG NOODLE PRODUCT Marketing @@ Today’s marketing and sales managers are over- loaded with data. We used to advise clients that the companies who own the data own the busi- ness. Today, we advise that the companies that best use the data will gain a significant competitive advantage. @® Jeff Hil Vice President Glendinning Associates etter Information, Faster Decisions Typically, the major concern of marketing managers is to achieve the right balance between maximum market share and product profitability. This balance is a key factor in bring- ing anew product to market or keeping a strong product on top in its category. Marketing managers have to make sure their companies get good performance from every dollar spent on their prod- ucts. They have to make effective investments in advertis- ing and promotion. They have to consider the impact of their decisions on manufacturing and logistics costs. And they must achieve their goals despite fast-changing mar- kets, product proliferation, the changing role of retailers, and intense competition. In our work with companies in your industry, we’re focus- ing on helping marketing managers track product perfor- mance in the marketplace. We’re helping them get fast feedback on how markets respond to new products and strategies. And determine how well their promotional — ——— programs are working. Because, when all is said and done, they have to make decisions affecting millions of dollars of revenues and profits in ever shorter timeframes. With whatever information they can get their hands on. The Digital Difference Digital’s strengths in networked information systems, including multivendor communica- tion, open new opportunities for collecting information. With Digital systems, your marketing managers can elec- tronically collect information from sales, distribution, manufacturing, market-tracking information services, and the retail trade. From virtually any major electronic database. Furthermore, we’re working with leading third-party solu- tion providers to jointly deliver the industry’s best solu- tions for analyzing market data, and ensure that these solutions are completely integrated with Digital’s net- worked information systems. Our goal is to allow market- ing managers to collect, consolidate, and analyze diverse information without the hassle of moving between systems or software applications. BRAND SEA < « oO w Be D z S S a Finally, Digital’s industry-leading office information sys- tems give marketing managers enhanced capabilities to act on their decisions quickly. To communicate with people throughout their companies easily, reliably, and effectively. More than most systems, marketing information systems have to be tailored to the needs of the corporation. They focus on very specific data, data sources, and information needs. Digital not only provides complete solutions for marketing organizations, but also provides the support services required for marketing organizations to plan, implement, and manage systems customized to meet their specific needs. Electronic point-of-sale termi- nals and UPC coding have helped ignite a market data explosion. This technology produces billions of market data points each week. Manufacturing @6@ Production technol- ogy has become a very high priority for food and beverage companies. The focus is now on net- working plants into corporation-wide manu- facturing information systems. Few vendors appear capable of match- ing Digital’s breadth and depth in this arena.@® M. Mehdi Alister President The Technology Group Incorporated formerly Technomic mproved Product Quality at Lower Cost The food and beverage industry is a manufacturing industry and, typically, cost of goods consumes forty to sixty percent of revenues. In a nutshell, the challenge for manufacturing is to maintain the lowest possi- ble costs consistent with high product quality and suffic- ient flexibility to accommodate change. Manufacturing managers emphasize different goals, depending on the product manufactured. For manufactur- ers of processed agricultural products, the goal is to be a low cost producer of a high quality, but basic, product. Conversely, manufacturers of branded products try to con- tain costs, but strive to deliver unique product characteris- tics. And they have to stay much more flexible to accommodate a more complex, dynamic mix of products. > 5 2 i We’ ve worked with manufacturing teams from a wide variety of food and beverage companies to help them achieve these goals. To give them better overall control over manufacturing processes, and help them solve specific problems. > For example, we’re helping manufacturers respond to increasing demands for product quality by developing quality control systems for both incoming materials and outgoing products. Often, these systems link quality data with distribution data to give the manufacturer improved capability to control products already in distribution. The Digital Difference Digital’s networked information systems, with their capability to integrate diverse com- puting systems and software, are uniquely suited to the needs of manufacturing. And they have helped propel Digital into a leadership position in computer-integrated manufacturing (CIM) technology. Simply stated, CIM improves the entire manufacturing enterprise by integrating the information flow within and between all its functions. This means that production is effectively coordinated with materials management, and that all functions that affect the factory floor — from sales and marketing to engineering and research — are tightly coupled. Furthermore, Digital is strong in providing industry- leading solutions. We have over fifty third-party solution providers worldwide who supply the best application soft- ware and hardware available for manufacturing and engi- neering. And a powerful Software Services organization that can create custom software to meet specific or unusual needs. Finally, we have a wide variety of products for the factory floor. We make specialized, ruggedized processors for the plant floor, factory data collection equipment, low-cost industrial local area networks, and board-level computers that are often used in factory automation equipment. And our Computer Special Systems organization can produce custom computing solutions when specific or unusual sys- tem hardware is needed. Manufacturers of processed agricultural products typically have to keep production at more than 90% of capacity to maintain profitability. Logistics @@ [nventory manage- ment is a process that integrates the entire sup- ply chain from source to retail shelf. Today, it requires dedicated, instantaneous informa- tion, which can only be provided by computer- supported data gathering throughout the supply chain. @®@ Ron Seger Vice President A.T. Kearney uperior Customer Service at Less Cost Logistics connects the links of the supply chain. It gets raw material into the produc- tion process, and finished goods from man- ufacturing into distribution. It involves production sched- uling, warehouse and inventory management, order pro- cessing, transportation, and purchasing, among other functions. In the food and beverage industry, logistics — along with marketing and manufacturing — is a key contributor to achieving critical corporate success factors. Especially customer service and profitability. Digital is helping logistics managers improve service levels while reducing inventories and general logistical costs. We're helping them improve the accuracy and timing of deliveries, and reduce the incidence of order cuts and substitutions. What's more, we're helping them contend with new, more specific challenges. Such as the opportunities inherent in transportation deregulation. Greater demands from the trade for damage-free or fresh products. And increased product change and complexity. The Digital Difference If your corporation is typical, your Ogistics managers manage operations on a national scale. They serve multiple manufacturing plants, and their distri- bution facilities are geographically dispersed. So any inte- station strategy for logistics focuses the spotlight directly on networking capabilities. Digital’s networks provide exceptional capabilities for Meeting these rigorous requirements. We lead our industry in our ability to network computers within a facility or across the world. Digital, with more than one million net- largest supplier of computer networks. poe developing networks dedicated to logistics, your __ Pany can extend its networks to provide direct connec- ‘aoe a other corporate functions, such as manufactur- ae sae, sales, and administration. Or even provide Nections to material suppliers and customers. ee work users at more than 8,000 customer sites, is the world’s Strong multivendor communications capability puts even IBM mainframe databases within reach. Finally, Digital supports logistics information systems with industry-leading software and hardware solutions, includ- ing those from leading independent vendors. For logistics, Digital’s information systems deliver improved performance at lower cost. Plus greater flexibility to contend with change and complexity. Sophisticated information management systems help manufacturers minimize logis- ties cost when faced with a complex mix of products, source points, and distribu- tion centers. or the Entire Enterprise — Achieving a Competitive Edge Building networked information systems benefits each of the major functions of the food and beverage enterprise. Not just marketing, manufacturing, and logistics, but sales, research, engineering, and administration as well. And with Digital’s flexible system architecture and rich portfolio of software solutions, you can start anywhere — solve any problem — knowing that your solution will fit into the larger concept of an enterprise-wide information system. But as your networked systems grow — and connect with one another — you'll be achieving much more than improvement in the performance of any one function. You’ll be developing overall organizational performance — a competitive edge — by allowing diverse business func- tions to operate as one. Digital Can Deliver What You Need = We want your business. And we’ve made the investments required to win it. We have a marketing organization fully dedicated to the food and beverage industry, supported by hundreds of sales and sales support staff who specialize in food and beverage industry solutions. We’ve created an Application Center for Technology (ACT) in Chicago that is dedicated to food and beverage technol- ogy. And we’re working with third-party solution providers to ensure that leading food and beverage industry solutions are fully integrated with our networked information systems. We have the support services needed to back up our tech- nology, too. Software Services. Field Services. Educational Services. Computer Special Systems. All of these organiza- tions can help you get over the hurdles involved in plan- ning, implementing, managing, and using your computing systems effectively. And finally, we have the capability to deliver solutions over the long haul. We’re a Fortune 50 corporation, and our business is totally dedicated to networkable computing solutions. We are the recognized leader in enterprise-wide networking, office information systems, computer- integrated manufacturing, and more. And we have the breadth of software solutions needed in all food and bever- age business functions. So take a major step toward developing new capabilities for keeping pace with changing tastes. Call your local Digital sales representative. _— Engineering Administration Changing retail trade Government regulation Competitive challenges Fast-changing market needs Integrating enterprise-wide information Digital believes the i publication is accurat date: information is si without notice. Digit for any inadvertent € The Digital logo, AL trademarks of Digital Corporation. Promted in U.S A. EA30648-82/87 12 65 39.0 MCG Copyright 1987 Digital Equipment Corporation All righis reserved