increasing profitability and productivity through high performance operations

UK edition

The food and beverage industry:

the food and beverage industry the food and beverage industry

The stronger voice of the consumers has become a driving force for food

and beverage manufacturers to produce in a smarter way.

To differentiate themselves, manufacturers need to place consumers at the

centre of operations and respond effectively to their changing demands.

They can do this through a combination of high performance operations

and a consumer-driven supply chain. High performance multipurpose

sites are being developed out of a holistic approach to operations which

integrates automation, connectivity, lean tools and more. At the same

time, the supply chain is being transformed in line with the pull of

consumers, allowing manufacturers to respond more quickly and more

cost effectively.

The combination of Royal HaskoningDHV experience and innovative

approaches is guiding companies in the adoption of new technologies

and how to get the most value from them to build competitive advantage.

Introducing the new reality for manufacturers

Integrated solution cuts time and cost

A new 35m-high cold store in

Cambridgeshire is Britain’s largest freezer

with capacity for around 77,000 pallets.

Cold store infrastructure presents a range

of complex issues across disciplines.

Royal HaskoningDHV’s multidisciplinary

design services provided an integrated

engineering solution, passing on time

and cost benefits to the client. Alongside

deep freeze functions, the facility is a

highly efficient distribution centre for

the nearby food factory.

the food and beverage industry

The challenges facing our clients in the F&B sector today are both complex and

multifaceted. Whether it be reducing energy costs, meeting changing consumer demand or creating

smarter manufacturing facilities, our clients rely on us to deliver innovative and multidisciplinary

solutions that turn these challenges into a real competitive advantage.

The macroeconomic prospects for the global

food and beverage industry are good. Growing

populations and rising wealth feed into strong

growth projections.

Customisation and faster product life cycles are forcing changeGlobal trends such as mass customisation,

automation, faster product introduction and

life cycles are forcing change and adaptation

within the industry. Environmental challenges

including the circular economy are also relevant.

Harnessed effectively, these trends can be

the drivers of competitive advantage that will

underpin the long-term success of food and

beverage manufacturers.

In response, food and beverage manufacturers,

like most organisations, are exploring how to

reinvent themselves.

Craig HuntbatchResident Director

Royal HaskoningDHV UK

Opportunities abound for

manufacturers who can adapt

the food and beverage industry

Productivity and competitiveness are crucialA recent survey by EEF The Manufacturers’

Organisation indicated that more than 50% of

manufacturers planned to increase investment

in technology and innovation in 2017.

Investment is being driven by the need to increase

productivity which is holding back development

and constrains international competitiveness.

The challenge is made more urgent by the

general political and economic uncertainty

which followed the country’s decision to

withdraw from the European Union.

This is allied to an increased pressure on prices

resulting from a weaker currency. The government

has pledged to support the manufacturing sector

to increase its global competitive position and

this support is likely to increase as a consequence

of Brexit.

In pursuit of 100% reliability

Operational efficiency is vital for

companies producing high-volume,

low-margin products in a highly

competitive market. A major UK sugar

manufacturer is constantly exploring

ways to optimise its production process

and achieve 100% reliability. In these

activities, Royal HaskoningDHV is a

trusted partner, operating alongside

in-house engineering teams to bring

specialist technical knowledge as and

when required.

The manufacturing sector in the United Kingdom

is committed to adopt this smarter production.

The sector has the largest share of innovative

firms in the UK and accounts for more than

two-thirds of total business R&D expenditure.

Manufacturers in the United Kingdom are investing in technology and innovation

the food and beverage industry

Consumer demand

requires moreagility from

manufacturers

Consumers are placing increasing

demands on producers, particularly in

mature markets like the UK. Powered

by social media conversations, a taste

trend can sweep through the industry

at considerable speed. Consumers expect

products to be available when and where

they want them.

Consumers want products here and nowManufacturers require speed and agility

to respond. They need to transform their

activities so they can react to the pull of

the customer instead of pushing products

out to the market.

Smarter production is therefore required

which encompasses efficiencies and

economies of scale. At the same time,

there is a need to prepare for distributed

manufacturing operations, automation,

digitalisation, flexible production and

cost reductions.

the food and beverage industry

Industry 4.0

Tim FryDirector Engineering UK

Royal HaskoningDHV

Robot

Instrument

HMI

Sensor

Monitoringtool

Smartfactory

Control system

“To be at the winning end, manufacturers need a vision

and roadmap, while at the same time improve value and grow profitability on

a daily basis.”

Tight budgets and day-to-day pressures remain. These include the need to

improve value and grow profitability while dealing with challenges such as

material supplies, production efficiency, energy consumption, hygiene,

working conditions and more.

UK manufacturers require a

long-term vision and road map to

ensure they stay ahead in a rapidly

changing market. The fitter the

operations are, the better they will

be prepared for what is to come.

Adopting a Lean 4.0 approach

can provide the ideal platform for

transitioning from the current

“Lean” programme to a more

effective journey.

Incorporating digital technology and

live data capture allows for forward

thinking decision making, enabling

transparency and predictability in

delivering value in the complete

supply chain.

Keep the big picture in mindSustainability, efficiency and flexibility

are high on this agenda and there is

recognition that a holistic data-driven

approach will underpin transformational

change. Manufacturers are also

exploring new technologies to

increase productivity and respond

more quickly to consumer demand.

R&D and innovation remain as

important as ever.

UK Manufacturers need a vision and

roadmap for the future

the food and beverage industry

Wastewater issues solved

Royal HaskoningDHV has solved

wastewater treatment issues at

a global beverage company’s

production plant in the West

Midlands. The introduction of its ABR®

(Anti-Bulking Reactor) considerably

improved performance, and ongoing

support continues to deliver enhanced

operations. By teaming up with Royal

HaskoningDHV, the organisation has sa-

feguarded business continuity and saved

money on short-term fixes.

Operations and supply

chain are key to achieving

objectivesOperations and the supply chain have a big impact on a company’s ability to achieve these objectives. Whether integrating a newly acquired company, ensuring consistent product quality, looking at how to use vacant facilities, or reorganising the R&D function, it is the operations and supply chain which can either boost or delay efforts.

Whilst the market implications of Brexit remain uncertain, the regulatory position is that “until exit negotiations are concluded, the UK remains a full member of the European Union and all the rights and obligations of EU membership remain in force. During this period the government will continue to negotiate, implement and apply EU legislation”.

The Environmental Permitting regime which regulates emissions can be expected to remain, and the Environmental Audit Commission has called for a new environmental protection act. However the environmental lobby fears that laws affecting greenhouse gas emissions will test the UK’s international commitments, and complex Directives on pesticides and chemicals will need to be unravelled.

• A focus on winning or maintaining market share: Most players need to be first in their business. Time to market can make the difference.• Ensuring profitable growth and competitiveness: How to do this in a volatile environment where consumer demands are constantly changing.• Flexibility in production facilities: How can changes in production be achieved without requiring major new investment?• Ensuring consistent quality: In particular across locations and countries, whether producing in Africa, Asia, Europe, etc.• Staying compliant in the ever-changing legislative environment• Working sustainably and responsibly while saving costs

Working with clients on a global and local level, we are finding that key items for the management team are:

the food and beverage industry

Towards high performance operations

A game changer for industry

A new state-of-the-art processing factory

for a major meat-processing company uses

Nereda® technology to treat wastewater.

The company, which is a sustainability

pioneer, chose Nereda® because it delivers

high quality effluent at a low cost with a

small footprint. To deliver high quality

products and remain competitive,

manufacturers need cutting edge,

cost effective technologies like Nereda® -

a game changer for the food industry.

To be ready to compete, organisations need to differentiate themselves from the competition. The requirements of manufacturing companies have been evolving, driven by changes in consumer demands and the general macroeconomic situation. As digital technologies advance, we see manufacturing sites becoming elements of cyber-physical systems.

Change delivers the flexibility needed to meet market trendsWhat will differentiate manufacturers in this highly competitive and rapidly changing market is a combination of high performance operations and a consumer-driven supply chain. Both are drivers within the company to place consumers in the centre of operations and respond effectively to changing demands. These differentiators will have a profound effect on the design of manufacturing facilities and warehousing, which are becoming more flexible and reconfigurable. Facilities will be more sustainable, more automated and will engage workers in improving the production process and saving costs, empowering them to innovate. Creation of these high performance multi-purpose sites requires a holistic approach, integrating automation, connectivity, lean thinking and more.

the food and beverage industry

Expect competition for skilled peopleIndustry 4.0 creates huge challenges for management. Already there is a shortage of highly skilled operations and supply chain specialists. As the fourth industrial revolution proceeds, demand will only increase.

Overall, the changes foreseen will require upskilling in the workforce. Complex problem solving and critical thinking are typical of the general competences that will help organisations adapt quickly to the changes ahead. Specific skills in, for example, big data analytics will be vital for faster digital business adaptation.

Collaboration is vital to realise the opportunitiesFor practical reasons businesses will need to collaborate and share information to take full advantage of the possibilities of Industry 4.0. This is partly a function of the shortage of people with the necessary skills but also because it will be too expensive and time consuming to manage all adaptations in-house.We have been working with leading food and beverage companies in the UK and elsewhere for over 60 years, improving their bottom line business results by helping them adapt successfully to new trends and technologies. In the UK today our multi-disciplinary teams are working with our clients to build connected digital operations of Industry 4.0.

Working alongside our consultants on a project basis and through ongoing collaboration, businesses adapt more quickly and learn from the market. In this way our clients are developing, executing and managing their operations in a flexible fashion nationally and internationally. Collaboration is vital to successfully build competitive advantage and realise the opportunities from Industry 4.0. Our experience and expertise is guiding companies in the adoption of new technologies and how to get the most value from them.

The new collaboration:

partnering with consultants…

and competitors

The fourth industrial revolution, Industry 4.0, will provide opportunities

to improve production and increaserevenues. We saw this in the three

previous revolutions. We also saw there are winners and losers depending on

companies’ ability to adapt.

the food and beverage industry

Master plan for jammanufacturing site

Activities at a thriving and long-

established jam manufacturer in Essex

had resulted in ad hoc development on

the company’s site over a hundred years.

To successfully meet the demands of

expanding operations over future

decades, Royal HaskoningDHV prepared

a design for a new sustainable and lean

factory which allows for growth.

Integrated multi-disciplinary

solutions bring added value

It is clear the challenges facing manufacturers are

complex and originate from many different areas

of operations. For example, buildings need to be

flexible and adaptable; long-term energy costs need

to sustainable; resources, especially water, must be

managed; and new technologies implemented.

With activities and expertise in all these areas and

more, Royal HaskongingDHV can put together

multi-disciplinary teams which draw on experience

from a range of industry sectors. These teams have

the breadth of expertise to develop the integrated

solutions companies need to add value for

clients and partners.

“With our wealth of experience in the

Food & Beverage industry, our teams help

accelerate transformationof businesses.”

Katherine MoorePrincipal Project ManagerRoyal HaskoningDHV UK

the food and beverage industry

Smart Solutions is a new structural

approach within Royal

HaskoningDHV to help clients solve

complex challenges. It addresses

the societal trends affecting our

clients and draws on our own

expertise in areas such as high-

performance sites, smart energy

solutions and healthy and inspiring

work environments.

Our projects are embedding digital

solutions, pioneering technologies,

resilience, flexibility and future

functionality for businesses and

communities across the world.

Specific services we offer to the

food and beverage industry include:

• Multi-disciplinary engineering: all RIBA stages, Level 2 BIM Delivery

• On-site and off-site renewable energy solutions from the business

case up to implementation

• Innovations in waste management and water treatment

• Technical due diligence for mergers and acquisitions

• Productivity and efficiency programmes including operational support

• Accelerate productivity and efficiency programmes with a Lean 4.0 approach

• Principal Designer (CDM Regulations 2015) & Lead Consultant functions

• Value engineering and design optimisation

• Digital tooling such as 3D Scanning of the existing plant and virtual

prototyping and simulation

• Design and engineering of standardised buildings supporting fast

organic expansion in developing markets

• Parametric design allowing for flexibility and last minute changes

with minimum impact on the project programme

• Re-masterplanning and repurposing sites and buildings

Smart solutions to increase efficiency, improve sustainability and create flexibility

Contact us and meet the team

www.royalhaskoningdhv.com/ukfoodandbeverage

Principal Manufacturing ConsultantNeil Wallburton

neil.wallburton@rhdhv.commobile: +44 (0)7552 262817

Principal Project ManagerKatherine Moore

katherine.moore@rhdhv.com mobile: +44 (0)7795 565047

Projects DirectorChristopher Mortlock

christopher.mortlock@rhdhv.com mobile: +44 (0)7500 960406

Business Development ManagerAntonina Firsova

antonina.firsova@rhdhv.com mobile: +44 (0)7920 727895

Royal HaskoningDHV is an independent, international engineering

and project management consultancy with 135 years of experience.

Backed by the expertise and experience of 6,000 colleagues all over

the world, our professionals combine global expertise with local

knowledge to deliver a multidisciplinary range of consultancy

services for the entire living environment in some 150 countries.

By showing leadership in sustainable development and innovation,

together with our clients, we are working to become part of the

solution to a more sustainable society now and into the future.

Please visit royalhaskoningdhv.com/ukfoodandbeverage for more information