Globally, the food industry is under a tremendous transition due to many factors such as digitalisation, tech innovation and ever-evolving customer demands. On the other side the growth of the food and beverage industry is also affected by factors including ongoing war, supply chain disruptions, inflation and economic sanctions. Apart from these issues, climate change, drought and low crop production are other factors impacting the growth of the f&b industry.
Worldwide, 19% of the manufacturers reveal that the supply chain system is the major challenge of the food business. The food and beverage industry must have a strategic planning and implementation system to tackle the ongoing supply chain problems. In addition, tech adoption is also essential in achieving overall innovation to combat the problems arising in the supply chain channels.
ERP for Food Industry
The food industry is vast and is dealing with so many challenges. However, there is one solution to combat all the challenges and attain unmatchable efficiency. Implement food ERP software to streamline all the business operations and to achieve faster productivity and growth. Enterprise resource planning software for the food and beverage industry is an essential tool to manage all the operations of the business proficiently.
ERP has many functionalities to manage all the crucial components of the business. The functionalities include purchase and order management (procurement), Inventory control, quality management, product development, compliance management, financials, sales and distribution and pricing. In addition, ERP provides customizable dashboards and reports which gives a complete and clear view of all the operations of the business.
In the food industry, you may be a manufacturer, co-packager or producer, implementing an ERP for your business will simplify all the functions of your enterprise. Plus, ERP has the capability to integrate with other systems which will enhance the operational capability of your business.
Let us discuss some of the abilities of the food ERP:
Recipe Management: With this advanced feature, manage your formula efficiently by controlling, creating multiple versions and securing it. In addition, it will also help in determining the pricing.
Valuation of inventory: ERP can calculate the value of the finished food product and determine the pricing accurately. It uses current valuation or average valuation technique to compute the total costing of the food product.
Cycle Count: This feature in the ERP will help in eliminating any discrepancies appearing in the inventory and the actual inventory. It will also provide accurate inventory information, and prevent operational challenges.
Resizing of Batches: ERP has advanced features which updates the amount of available raw materials. This will prevent stoppages in production and ensures that the right amount of materials are available for production.
Optimizing Inventory: Different methods such as LIFO, FIFO, and FEFO can be used to manage and track the inventory.
Read: 7 Tips to Succeed in your Business with Manufacturing ERP Software
How does ERP optimize the Supply Chain of the Food Industry?
ERP for the food industry is a boon as it helps businesses to manage distinct operations seamlessly. ERP designed for the food industry will undoubtedly remove all anomalies and improve the productivity of the business. In this post, we are focusing on the benefits of ERP systems for the supply chain operation of the food industry.
1. Enhanced visibility and control
Gaining control of the supply chain system of the business is crucial as it directly reflects on the productivity and the growth of the business. ERP has advanced visibility features which will help in viewing all the activities of the organization in real time. It can monitor the inventory levels, track the progress of the production process and helps in identifying the bottlenecks as they occur.
In addition, the real time information aids the management to make informed decisions and prevents potential risks. All these valuable features will ensure smoother flow of goods in the supply chain process.
2. Improves Efficiency
ERP automates all the business operations which helps in obtaining error-free data. Plus, automation saves time, especially repetitive tasks. In addition, orders can be processed quickly which will help in increasing the value of the business among customers.
3. Demand Forecasting and Planning
Product demand in the market can be attained with the help of advanced ERP algorithms. The algorithms in the ERP considers the historical data, market trends and other significant variables to determine the demand for the specific product. This data will help in stocking the right amount of materials in your inventory.
4. Lowers Costs
With ERP you can achieve cost-saving opportunities throughout the business. This system will help in allocating resources accurately, identifies wastage and maintains the right amount of inventory levels. This will help in minimizing operational costs of the enterprise.
5. Collaboration with the Suppliers
For a supply chain to function efficiently, trust and proper collaboration with the supplier is mandatory. Better collaboration will ensure order accuracy, reduce lead times and the materials will be delivered on time. Hence, if the food manufacturers and the suppliers are on the same page, it will be easier to quickly respond to change or immediate demands.
6. IoT- enabled Supply Chain
Internet of Things (IoT) is an advanced technology necessary for the current business scenario. It involves devices such as sensors and RFID Tags which revolutionizes the supply chain system. All these devices help in monitoring temperature and humidity which is necessary for the food industry.
Final Takeaway
Agility and efficiency are two crucial factors shaping the supply chain system. Food industry is facing a lot of pressures such as increasing competition, change in customer preferences and the unending challenges of ongoing wars, geopolitics etc. There is only one solution to combat all these challenges which is ERP solution.
Managing the supply chain is the top priority of the business as it will directly impact the business growth. However, all the features of the ERP are specifically designed for the food industry which will help in managing the food enterprise seamlessly without any bottlenecks. It helps in gaining control, efficiency and traceability in the daily business operations. Implement modern ERP if you want to solve all the challenges of today’s business landscape.
Author’s Bio:
Sneha Rakte is a specialist in communication who excels at recognizing client requirements. She produces persuasive sales copy and high-converting content. She currently works with Sage Software Solutions, an industry leader in supplying small and medium-sized enterprises in India with high-quality ERP software and CRM solutions.