Efficient Inventory Management — A Key to Reducing Losses in the Dairy Industry

Milk processing involves a chain of operations that are highly sensitive to time and temperature, making inventory management a critical factor for both economic efficiency and final product quality.

In Romania, according to data from INS and Eurostat, technological and logistical losses in the dairy industry range between 3% and 5% of total processed volume — a significant figure given the rising cost of raw milk. European regulations on food safety and traceability, particularly Regulation (EC) No 178/2002, require continuous monitoring of product batches. Modern inventory management systems offer integrated solutions to meet these requirements. Implementing ERP (Enterprise Resource Planning) and WMS (Warehouse Management System) platforms enables real-time tracking of raw materials, intermediates, and finished products, optimizes stock rotation under the FIFO (First In, First Out) principle, and reduces the risk of product expiration.

Best practice examples from the dairy sectors in France and Germany show that integrating management systems with production lines and packaging equipment can cut losses by up to 30% and reduce logistics costs by 12–15%. Furthermore, digitizing storage processes facilitates compliance with ISO 22000 and HACCP requirements, ensuring full traceability from raw milk reception to final product delivery. For Romanian processors, modernizing inventory management is not only a way to minimize losses, but also an essential step towards integrating into competitive value chains at the European level.

As consumers and retailers increasingly demand longer shelf life and more precise deliveries, optimizing this segment can provide a direct competitive edge, improving both profitability and producer reputation.

(Photo: Freepik)