In the logistics of the foods sector, the efficient planning of the distribution is essential to guarantee that the products arrive at the destination with quality and in the appropriate time.
Distribution requirements planning (DRP) is a strategic tool that allows companies in the cold chain to optimize their processes, such as improving the availability of products.
In this article, we will explain more about how this system works, its benefits and how to improve the foods logistics in your company. Check it out!
What is DRP (Distribution Requirements Planning)?
Distribution Requirements Planning(DRP) is a system used to coordinate and optimize the product distribution needs in a supply chain.
DRP is fundamental in the context of logistics of perishable foods, as these types of products have to be delivered quickly, in accordance with rigorous storage conditions, such as the proper temperature and humidity.
How does DRP benefit food companies?
From the efficient stock control to speed in the delivery of products, DRP helps companies selling perishable foods, such as fruits, vegetables, meats and so forth.
Understand the benefits involved:
More efficient stock management
Stock management becomes more precise, avoiding excesses or lack of products.
Demand forecasting, integrated with distribution planning, enables companies to adjust their stocks dynamically, guaranteeing that they always have the necessary volume of foods available to meet the demand without overloading the storage.
Reduction of operational costs
By improving the precision in the planning of stocks, DRP contributes directly to the reduction of costs. With planned replacement, companies avoid the need for excessive purchases, which results in reducing the expense on idle stock, unsuitable storage and waste of foods.
Guarantee availability of products
Organizations can also guarantee that certain products are available at the proper time.
For the logistics of perishable foods, this is a fundamental benefit, as products with high turnover, such as fresh or frozen foods, have to be replaced quickly to avoid lack of stock and to guarantee that consumers have access to fresh products within their shelf life.
Agility in deliveries
Planning of the distribution routes and synchronization with demand guarantees that the deliveries are done as quickly as possible and within the agreed times.
In the cold foods chain where the transport time is a determinant factor in maintaining the quality, DRP can minimize delays and guarantee that the foods are delivered under the ideal conditions.
Furthermore, the system facilitates the monitoring of logistics processes, making the identification of possible bottlenecks simpler, enabling fast decision making to avoid any kind of delay.
What are the stages of DRP?
- demand forecasting — the first step is to forecast the demand on the basis of historical sales data, market trends and seasonal factors. This process helps determine the quantity of products necessary in a given period;
- planning of stocks — from the demand forecast, the company defines the quantity of products that should be held in stock at each distribution center, considering the storage capacity and the replacement needs;
- replacement planning — with the stock having been planned, the way the products will be replaced in an efficient manner has to be defined. DRP helps coordinate the replacement orders so as to avoid excesses or lack of merchandise.
- execution of deliveries — lastly, the execution of deliveries has to be done in an agile and efficient manner, observing the time periods and specific conditions of transport, especially in the case of perishable foods.
How is DRP implemented in a company?
To implement DRP, companies have to invest in leading edge technology, such as supply chain management software and training of teams to use it in an integrated manner.
Given this, you can count on a specialized logistics partner who understands the complexities of the cold chain, which is an excellent investment to have customized solutions at a fair cost.
Find out about our logistics solutions
At Emergent Cold LatAm, we offer made to measure logistics solutions for the perishable foods sector.
Our experience and leading edge infrastructure guarantee excellence at all stages of the cold chain, from storage thro to the distribution of perishable foods — for their customers to consume fresh, quality products with food safety.
Find out more about out principal services:
- cold storage —weoffer a storage network at different temperatures, attending to the storage needs of chilled and frozen foods;
- dry storage — solutions for storage of non-chilled foods, such as seeds and dry products, ideal for retailers and distributors;
- port storage —warehouses strategically located in the principal ports of Latin America, connecting our clients with the global foods companies;
- added value services — includes processing, picking, labeling, packaging and repackaging, customizing products in accordance with the needs of the clients;
- production — we offer services such as receiving, separation, washing, peeling and cutting of fruits and vegetables, optimizing the time and costs;
- IQF freezing — we use the individual quick freezing technology (IQF) to preserve the freshness and quality of the foods, maintaining the texture and flavor;
- packaging — packaging solutions adapted to the needs of each client, guaranteeing the integrity of the products during storage and transport;
- chilled and frozen transport —specialized transport for refrigerated and frozen products, maintaining the suitable temperature throughout the whole journey;
- national transport — an efficient transport network within each country, connecting producers, distributors and retailers quickly and securely;
- international transport — secure and reliable transport, with global alliances, facilitating cross-border trade and the expansion of your business;
- added value services (repeated) — includes container yards, loading points and assistance with documentation and customs procedures.
