With the coming of Diary Co-operatives supported by refrigerated transportation networks, today the customer has an option of selecting packages milk supplied by an array of suppliers. The days of monopoly or oligopoly are gone, hence Dairy Companies are facing tremendous pressures. Now they have to be more efficient and pass on the price benefit of this to the customer while maintaining the highest quality standards.

The Dairy industry continues to face significant challenges but despite the maturity of the market, opportunities do exist for improving profitability through the use of technology and focus on core competencies. Forces affecting manufacturers are acting throughout the value chain. Tomorrow's consumer is a far cry from yesterday's. Improved communications has broken down geographic borders, Consumers are becoming more ethnically diverse, mature, and varied in terms of what comprises a household. These forces have increased the importance of expanding (globally) and diversifying product offerings to win consumer loyalty.

Technology is advancing. The mainframe is being replaced by a network infrastructure. Web-based technology has exploded and growth is expected to accelerate. Manufacturers can leverage these advancements to create new opportunities to drive down costs, meet customer needs, retain customers and gain overall competitive advantage.

Given the forces at work in the industry, manufacturers must take actions to succeed in the "Zero-Sum" game. The process never ends. Manufacturers must continue to strengthen their relationships throughout the supply chain. The exchange of information with their customers will help them to realize the benefits of collaborative forecasting, planning and replenishment.

Taking responsibility for category management is another major initiative focused on providing added value to customers and regaining some control. The manufacturer must search for new ways to expand the relationship with the consumer. Brand building must be a major focus to create/maintain loyalty as consumers are bombarded with a wide variety of messages and private label gains penetration.

The manufacturers' product portfolio represents another tool to compete by satisfying the consumer and helping meet financial targets. Manufacturers have, and will continue, to increase the number of products under a line, or brand name, and they are increasingly focused on moving to higher margin products as they strive for profitable growth. To complement these revenue growth opportunities, manufacturers must strive to further reduce their cost structure. Several industry leaders have divested non-core assets and acquired similar businesses to build scale. Trade promotion, often a manufacturer's second largest expense, represents another opportunity to gain leverage in the marketplace. All of their actions, which aim to drive up revenue and drive down costs, are being supported by investments in technology. Technology investments are expected to continue to grow, as manufacturers increasingly understand how technology helps to improve sales, information systems, manufacturing, and logistics management

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