Dairy Processing - July/August 2022 - 19

Although data-driven decisions may be in
the " early adopter, pioneer " phase for some
processors, Sexton said many companies diving in
are seeing " significant " financial results.
RISKS OF NOT MODERNIZING
On the opposite end of the spectrum, failing to
modernize could potentially hurt processors.
Pandya said milk and milk products have
been relatively low margin businesses historically,
with limited leverage for processors across
most channels. That's why plant operations, he
added, typically become a source of " distinctive
strategic advantage. "
As an example, Pandya said if one processor
is making a product at a 65-70% OEE level and
another is making the same product at a 40-50%
OEE, the cost structure would hold the second
company back.
He also pointed to two other risks that
accompany choosing not to modernize: extra-long
lead times for upgrades and new equipment, as
well as 2022's high inflationary environment.
Failing to modernize, in Datlow's view, involves
an opportunity cost if companies aren't as efficient
in their day-to-day operations as a result.
" The most obvious risk is revenue decline
from not being able to produce the same, or more,
products in a cost-efficient manner, " she said.
" As analytics capabilities become more and more
common across the industry, those not investing
in data-driven modernization risk falling behind. It
could manifest as inefficient dairy production or
lack of new products or any other myriad of issues
that could come from not using the data at your
fingertips to make the best business decisions. "
Whether a company is measuring its carbon
footprint or utilizing its modernization efforts
to back up sustainability claims that appeal to
consumers, Sexton said embracing technological
" Data can play
a huge role
in helping a
business get
ahead in the
market. "
Lindsay Datlow, SAS
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Dairy Processing - July/August 2022

Table of Contents for the Digital Edition of Dairy Processing - July/August 2022

Dairy Processing - July/August 2022 - Intro
Dairy Processing - July/August 2022 - 1
Dairy Processing - July/August 2022 - 2
Dairy Processing - July/August 2022 - 3
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