Role of Technology for Scalability in Dairy Business

Scalability in the dairy business refers to the capability of the dairy business to expand and grow exponentially irrespective of the market challenges.

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The dairy industry is one of the fastest-growing industries and has shown great future potential. According to Mordor Intelligence, “the dairy market is projected to register a CAGR of 5.35% by 2027.” 

The thought of scaling up the dairy business might seem exciting but actually can be a nerve-wracking task. However, technology has streamlined the diary business processes making scalability an easier task. 

Common challenges while scaling the dairy business

Choosing appropriate technology- There are many milk round software available in the market and choosing the right one is the most crucial step. The dairy business is a subscription-based business where it is important to use tech that supports subscription-based orders. 

Here is the checklist you can consider while choosing the milk round software:

    • Order management system
    • Subscription model tech
    • Automated invoicing and payments
    • Stock reports 
    • Bottle return management 
    • Allow customer feedbacks
    • Real-time delivery tracking 
    • Distribution and logistics
    • Multiple payment options
    • SAP integrated

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  • Lack of funding- While scaling the dairy business, funding can be a bottleneck.

Here are some funding-related challenges that a dairy business might face.

    • Expensive technology
    • Cost of deliveries
    • Fuel costs
    • Cost of hiring drivers

Reaching a broad audience 

Without accurate data, it is not possible to reach out wider audience digitally.  As the dairy business grows it becomes difficult to manage customers manually. It is crucial to maintain customer details in order to scale up the business. Customer service relationship or CRM is a software that helps in maintaining the data of the customers. 

High cost of dairy expert team  

Scaling the dairy business requires a team with skills and knowledge who understand the dairy market and its audience. However, it can be highly expensive to hire such a team. 

Ways in which technology helps in the scalability of the dairy business

To scale a business, it is crucial that the business has low operational expenses with respect to profitability. Here is how technology can reduce the extra business operational costs and assist in scaling your dairy business: 

  • Enhances operational efficiency-  All the dairy business operations can be controlled and kept eye on by the admin panel. Route-optimization feature defines the shortest route which ensures that it decreases the turnover time and timely delivery of the milk. The distribution process is automated. The orders are auto-assigned to the drivers and delivery routes are created.
  • Increase productivity, while decreasing costs- Technology can automate the dairy business processes which reduces the need for extra hands for stock handling and improves the productivity and efficiency of the business. The delivery routes are optimized and the shortest route is created which results in cutting off delivery costs.
  • Provides data and analytical reports- Integrating technology with the dairy business provides essential data and analytical reports that help in understanding the progress of the business and planning future strategies. Data and analytical reports help in understanding:
      • Customer sentiments and analytics 
      • Product and overall sales 
      • Future stock planning
      • Distribution and logistics 
  • Increases the customers’ experience- Order or subscription modification is one of the biggest challenges faced in the dairy industry. Integration of technology with business provides a customer interface that allows the customer to modify their order or subscriptions on their own.

Technology integration makes order-related updates, and orders, easy and auto-generates payment summaries that are accessible on the customer interface and the admin panel which promotes transparency. Technology in the dairy business allows customers to get real-time in-app order status updates.

Automation approaches to scale up your dairy business

Real-time updates

Automation in the dairy business provides real-time order updates and allows customers and businesses to track orders. This also provides zero error ETAs that keep the customers content about the time of delivery of their orders. The customers are in direct contact with the driver and can communicate in case of any delay in delivery. These real-time updates promote transparency and help build trust among customers and increase customer retention. 

Order management system

An automated order management system simplifies the order management process reducing the chances of manual errors while improving operational efficiency. Placing new orders, modifying existing orders, and canceling or rescheduling orders in the dairy business are one of the most challenging tasks. The customers are able to place a new order, modify the existing one, and cancel or reschedule their orders from the customer interface. Any new order placed or modified order is auto-updated on the admin panel and the admin can then accept or cancel the order. This reduces the chances of manual errors while accepting orders manually and ensures hassle-free order modification. The milk round software also allows customers to edit “on-fly orders.” This helps in increasing customer retention and reduces the churn rate.  

Payment management system

The payment management system is an automated platform that auto-generates invoices weekly or monthly. In dairy businesses, mostly the bills are post-paid, the system sends pending bills notifications via linked-based sms and emails and helps in tracking the payments and reconciliation. The system offers flexibility in payment options both online (via debit card, credit card, payment gateways, and wallet) and offline (via cash).

Route- optimization

Incorporating automation into business optimizes the delivery routes and sequences the deliveries which reduce the turnaround time, saving fuel cost and help in on-time deliveries. As the delivery person delivers the milk every day and the delivery has to be done in a limited period of time, route optimization can be of great help. 

Detailed business reports

Automation integrations create a detailed business report that helps in understanding the complete health of the business. Having a good understanding of sales and demand helps in planning and creating strategies while scaling the business. 

Scaling up might not be as exciting as it mind sound and can actually be a hectic process. However, technology has simplified attaining scalability in the dairy business reducing the cost of business operations and making them more efficient.  

If you are also looking forward to scaling your dairy business, but are confused about where to start then: Talk to our Experts