Business Benefits By way of a Food and Beverage ERPPosted by Cox Leach on April 24th, 2021 Enterprise Resource Planning (ERP) is a software suite that integrates business information including finance/accounting, customer relationship management, procurement, human resources, budgeting, sales order entry, materials, and manufacturing processes. Its goal would be to seamlessly flow accurate, real-time data through the many business functions to streamline processes, improve decision making abilities, increase visibility, and provide greater control and visibility throughout a business. This is especially ideal for process manufacturers in the meals and beverage industry for several reasons. Due to strict requirements and regulations in the industry, along with increasing consumer expectations and tough competition, companies must provide better service in less time at a lower cost. A great solution to answer those challenges has been a comprehensive ERP system that is specifically designed for manufacturers in the food and beverage industry. Compliance The U.S. Food and Drug Administration (FDA) oversee any food and beverage products manufactured or sold in america, and sets requirements that those products must meet to be legally sold. Legislation in 2011 provided a larger level of authority to the organization with increased enforcement abilities to attain higher compliance rates than any other changes to food safety law in the history of our country. While this can be a measure enacted to protect the buyer, it has added a new degree of considerations that food and beverage manufacturers must manage. These requirements come with expenses to the manufacturers through slower processing capabilities, top quality assurance measures, and increased payroll expenses. Implementing an ERP solution can help manage these increased regulations in a number of ways. Quality control can be more easily monitored, gets the capability to increase required parameters, and will house extensive historical data to recognize common issues and improve your products. This also allows for easier reporting and auditing. Having an ERP in place can monitor and immediately adjust all changes, lot numbers, expiration dates, and other pertinent information at any point in the production process. At at any time, an ERP provides the ability to access info on any specific product with a full lot history including testing results, and may catch any non-compliance issues before they turn into a major problem. Reduce Expenses As it can be expected, the increased regulations can also increase expenses. By implementing an ERP, you can reduce costs in the areas of manufacturing, distribution, and shipping. Planning, production, and inventory management costs are reduced through streamlined information access. The increased visibility into your operations that is provided by an ERP can help reduce waste and monitor perishable recycleables. Equally important, an ERP positively affects processes such as batch and continuous flow processing, formula and recipe management, allergen designation, shelf-life management, labeling, and many more. All of this translates into a very favorable profits on return and is the reason why and ERP solution for food and beverage manufacturers might help companies develop, create, and distribute better quality products at a lower price than competitors. Adm Food Are Created Equal Every ERP includes a basic framework with the intention of streamlining processes, increasing productivity, and improving business operational management. However finding a provider of ERP systems that are specially designed for your specific industry makes an enormous difference in the amount of benefits it will provide. You can find so many variables that differ across industries, and it is important that the ERP provider you choose gets the skill and experience to meet up the unique needs of one's field as well as your individual business alike.Like it? Share it! More by this author |