video The pandemic disrupted the supply chain world in ways unimagined including a shortage in suppliers, increased tariff costs and employee absenteeism. The impact of those shutdowns and other challenges resulted in companies globally scrambling to react. Unfortunately, many companies have been forced to choose which lines to run each day and which customers to prioritize.   With all these activities happening on a short notice, our clients are struggling to see the daily realities of their business at a level of detail that they could act upon quickly. Watch this webinar presented by the International Dairy Foods Association (IDFA) to learn how Baker Tilly’s Dynamic Costing® approach enables dairy manufacturers to eliminate the time-consuming assembly of cost standards, give continuous visibility to production, and how to view those insights daily to drive profit in this ever-changing demand. In this webinar, presenters Eric Kroll, Cory Wendt and Rob Bellile, explore why standard costing may be damaging a manufacturer’s bottom line and how to maximize their data to increase efficiency.

Watch this webinar recording to learn how Dynamic Costing™ approach enables manufacturers to eliminate the time-consuming assembly of cost standards, give continuous visibility to production, and how to view those insights daily to drive profit in this ever-changing demand.

Manufacturing & Distribution

Dairy

Distribution

Food & Beverage

Baker Tilly Digital

Data Solutions

Dynamic Costing® 

Supply Chain Analytic & Financial Solutions

Supply Chain & Manufacturing Consulting

Dairy is a dynamic business – are your cost standards dynamic enough to keep up?

The pandemic has brought a heightened awareness to the need for companies to have effective and efficient plans for potential disruption.  While the conversation of managing disruption in supply chain management is nothing new, it finally has earned the attention many believe it has needed for the past two or three decades. Many cases over the last year have shown first-hand that how companies deal with disruptions can make or break their future. Although the pandemic may be considered a black swan event when it comes to disrupting supply chain, that should not discount the importance of effective risk management and properly implemented business continuity plans. Failure to recognize and understand the risks your organization faces will likely lead to unnecessary disruptions and subsequent loss of profits. Even with the most structurally sound strategies in place, a supply chain company is destined for failure if it lacks a fully completed risk assessment and disaster plan.   Supply chain disruptions can come in various forms that affect companies differently depending on factors such as their location, their product and their supplies. A disruption can be defined as an unforeseen breakdown, malfunction or failure of one’s production and/or distribution that negatively impacts the supply chain process. So what disruptions should your supply chain management company plan for? That question might not have an easy answer, but companies can begin protecting their supply chain by planning for the risks currently trending which, according to DHL’s Resilince360 Annual Risk Report, include the following: Environmental Climate change has been a global concern and a growing risk as it relates to supply chain management for years. Climate change affects not only the intensity but also the frequency of large-scale natural disaster disruptions such as wildfires, tropical storms, droughts and hurricanes. From climate change comes tougher environmental regulations heavily affecting many of the production and distribution channels of supply chain companies. There are countless rulings issued by the Environmental Protection Agency, as well as numerous federal laws, and a growing number of global regulations that are becoming more stringent. Can you afford to keep emissions at the level they currently stand? Can you afford to lose a full day of power due to extreme flooding? Can you afford the switch to low-sulfur fuels to align with the International Maritime Organization (IMO) requirements? Can you afford to work at 1/8 capacity of your staff when evacuations are mandatory due to spreading forest fires? No one can completely eliminate the risks associated with climate change and environmental regulations, but everyone can effectively, efficiently and realistically plan for them with an appropriately implemented business continuity plan.  Locational How much trade risk your company faces has probably drastically changed just within these last few years. Not unlike climate change, trade risk has been an area of concern within supply chain management for years, but the growing potential of a full-scale trade war has created even more uncertainty in recent years.   Continuing uncertainty and increasing tensions as it relates to trade policy have made it impossible to determine a clear-cut answer for how to reduce the risk a company faces, but at the same time, can you afford to leave it unaddressed entirely? Probably not.  If recent times have taught us anything, it is that supply chain companies need to consider restructuring their manufacturing and overall operational composition. By adopting an end-to-end structure, supply chain management companies create complete visibility into their organization’s operations, allowing them to become more agile and to make real-time decisions when it comes increased/stricter tariffs, additional trading regulations, border disputes, etc. Political  Generally speaking, we can prepare for political changes, as we typically know when potential disruptions are coming – an election year, a voting month, a shift in party power, etc. You can typically plan for these bumps in the road.  Additionally, it is important to remember that just because your country might not be experiencing political unrest, you can still be greatly affected by other countries or areas that are. That’s the nature of supply chain. You need to be prepared at all times. And as you know, the list of potential issues across the globe is a lengthy one, from trade wars and tariffs to economic struggles and various types of sanctions. With this in mind, you should periodically adjust – or, at the minimum, revisit – your organization’s supply chain management goals and visions. This will help ensure that your company’s goals still align with and address the current political climate. Additionally, it will help ensure you have a well-balanced and mixed SCM plan that takes into consideration what is necessary for the organization’s survival in times of extreme political unrest – not just in your homeland but throughout the world.  Companies obviously cannot realistically and effectively plan for all possible disruptions – for instance, nobody saw a once-in-a-generation pandemic coming – but that should not interfere with adequately planning for those situations that may arise. With supply chain being an ever-changing industry, companies need to ensure they are continually monitoring, sufficiently preparing for, and taking appropriate action on the risks that affect them the most. Managing disruption is not a sprint, but a marathon. Proactive and continual risk management is the key to creating long-term success for any supply chain management company. Failure to do so will quickly create an insolvent company that is unable to recover from the lack of planning for risk and disruption. How Baker Tilly can help Baker Tilly is deeply experienced in the circumstances surrounding supply chain management disruption caused by the factors mentioned above, as well as other unforeseen situations. We can assist your company with risk framework, risk assessment, business continuity planning, regulatory compliance assessment and review, supply chain analytics and overall strategy, planning and optimization. Connect with a member of Baker Tilly’s supply chain team to discuss how our Value Architects™ can help you prepare now, for tomorrow.

Supply chain disruptions can come in various forms that affect companies differently depending on factors such as their location, their product and their supplies. Read this article to learn how your company can begin protecting your supply chain by planning for environmental, locational and political risks currently trending. 

Mobility & Transportation

Craft Beverage

Agribusiness

Consulting

Supply Chain Strategy, Planning & Optimization

Supply Chain Resilience

Navigating and managing disruption in supply chain management 

In an article published in the July/August issues of On Balance magazine, Baker Tilly discusses several common issues and planning strategies for successfully transferring ownership of a family business to the next generation.
Reproduced with permission of WICPA

In an article published in the July/August issues of On Balance magazine, we discuss several common issues and planning strategies for successfully transferring ownership of a family business to the next generation.

Construction

Family Business

A discussion on succession planning for family businesses in WICPA’s On Balance magazine

Our client’s need Business projections resulting from new long-term client commitments of a foundry specializing in producing steel, stainless steel, and high alloy engineered castings revealed that, without a facility expansion, the company would run out of capacity to meet demand within a year. Plans called for a new $38 million, 93,000 square foot foundry and machining operation that would increase the pouring capacity by 50 percent and include a new office facility. The volatility of the steel industry, and the business climate of their clients, demands the company deliver annual cost reductions. This challenge, coupled with the ongoing stringent lending requirements, meant they needed to minimize their overall costs to ensure the best chance of a successful expansion. Baker Tilly solution Due to the significant start-up costs, including hiring and training personnel, it was important for the foundry to reduce the upfront capital investment needed to offset higher logistical costs. Baker Tilly worked with them to identify the economic impact of the expansion, evaluate the business impact of the various types of local and state economic assistance available, and negotiate the terms of the incentives. The company’s state income tax position meant nonrefundable Impact of Manufacturing and Agriculture tax credits would be of limited value. Results achieved Baker Tilly was able to help the foundry secure a $1 million incentive loan by demonstrating the expansion’s positive economic impact on the community—140 new jobs over four years, and a 50 percent increase in expenditures with local suppliers and vendors. For more information on this topic, or to learn how Baker Tilly specialists can help, contact our team.

Real Estate

Incentives Advisory

Project Finance

Foundry secures a $1 million incentive for critical facility expansion project

From field to fork: specialization across the supply chain.

Dairy experience matters. Understanding how consumer preference, government regulation, energy and weather can affect your business is crucial. From genetics to commodity pricing, the impact of the Farm Bill to integration into the food supply system, our team works to be your valued dairy advisor.

Dairy surplus, border tensions, export opportunities, food safety in the supply chain and consolidation are all real issues that impact our dairy clients every day. 

Baker Tilly’s dairy professionals — including team members who have worked on farms — bring in-depth industry knowledge and an intimate understanding of dairy challenges to each client relationship. 

We combine our industry experience in agribusiness, cooperatives and food and beverage to bring true specialization across the supply chain. 

In addition to offering Exceptional Client Service for core accounting and tax services, we also offer dairy advisory services tailored for each of our clients in the industry. 

Baker Tilly helped the company evaluate three potential locations for construction of a new plant, and select a site that closed a funding gap with assistance from municipal and state governments as well as reduced utility rates.

Cheese producer secures $5.6 million in state and local financial incentives necessary to break ground on $40 million plant

Our dairy team shares their insights across the U.S. through thought leadership, speaking engagements and association participation. A sampling of our industry knowledge has been shared with:

Professional Dairy Producers of Wisconsin

Using data analytics to drive business success and outpace the competition

Data. It powers your company. Manage it. Visualize it. Secure it.

In need of an expansion to keep up with consumer and commercial customer demand, a cheese processing facility obtained $30.5 million in NMTC allocation to complete the project financing.

Cheese processing facility creates 50 jobs with 55,000 square-foot expansion in rural Tennessee

Baker Tilly Capital successfully provided corporate financial advisory services to Foremost Farms USA, one of the largest dairy cooperatives in the United States.

Corporate debt structuring services to a dairy cooperative

Baker Tilly Capital successfully provided corporate financial advisory services to Meister Cheese Company, LLC and Muscoda Protein Products, LLP (the Companies).

Corporate financial advisory services to cheese and dairy producer

Baker Tilly’s dairy practice brings dairy experience to farmers and processors from field to fork. Our dairy practice grew out of the Midwest in 1931.

We help food and beverage companies navigate changing consumer demands, innovation and the global landscape to help them grow their operations in any circumstance.

We help food and beverage companies navigate changing consumer demands, innovation and the global landscape to bring insight and innovation. 

Distributors rely on Baker Tilly to help them streamline operations, automate processes and capture data critical to daily decision making. 

Understanding the complexities of the cooperative tax structure, patronage and non-patronage income — and the value to its members — is what Baker Tilly’s cooperatives specialists bring to the table. 

Helping manufacturing and distribution (M&D) companies reduce risk and improve efficiencies from the shop floor to the top floor.

We bring insight across the supply chain to improve efficiencies, reduce risk and offer solutions as market disruption continues in the manufacturing and distribution industry.

manufacturing-distribution-hero-video.mp4

Brad is managing partner of industries with Baker Tilly US, LLP. As managing partner of industries, Brad’s focus is on developing strategy and implementing the firm’s vision across the more than 30 industries Baker Tilly serves. He drives profitable growth, innovation and the development of new industry specific products and services to create value for Baker Tilly’s clients.

Eric Kroll is a partner with Baker Tilly’s manufacturing and distribution practice.

Cory Wendt is a principal with Baker Tilly’s development advisory practice and the firm’s manufacturing industry practice leader.

Capturing, understanding and leveraging the data that matters most and bringing it into focus is no trivial matter. Rely on our experience to drive your business forward.

Capturing the data that matters most and bringing it into focus is no trivial matter. We help our clients derive value from data, to create a “single source of truth.”

Dairy

Dairy is a dynamic business – are your cost standards dynamic enough to keep up?

Navigating and managing disruption in supply chain management

A discussion on succession planning for family businesses in WICPA’s On Balance magazine

Foundry secures a $1 million incentive for critical facility expansion project

Food & Beverage

Distribution

Cooperatives

Data Solutions

Brad DeNoyer

Eric J. Kroll

Cory R. Wendt

From field to fork: specialization across the supply chain.

Our solutions

Case study

Dairy advisory services

Cheese producer secures $5.6 million in state and local financial incentives necessary to break ground on $40 million plant

Leaders in our field

Speaking engagements

National publications

Dairy associations

Our professionals

Data. It powers your company. Manage it. Visualize it. Secure it.

Using data analytics to drive business success and outpace the competition

Featured insights

Cheese processing facility creates 50 jobs with 55,000 square-foot expansion in rural Tennessee

Corporate debt structuring services to a dairy cooperative

Corporate financial advisory services to cheese and dairy producer