How ERP Systems Benefit businesses in the Food Industry

  • Let us be honest, all process manufacturers encounter similar challenges when it comes to running a profitable business, such as managing inventory, customer requests, safety, and regulation compliance. However, when it comes to the food and beverage industry, they have particular concerns that require more thought and attention to detail. These businesses have to think about things such as packaging, labelling requirements, recipe management, lot tracking, weights and measurements. It can be quite a handful trying to manage all of these aspects while ensuring the quality of your products remain constant. This is why it is a great idea to acquire an ERP system for the food industry so that you can successfully maintain each and every aspect with ease and full control.

    Let us look at some of the major advantages that an ERP system can bring to your business:

    Automation: The biggest attraction to ERP systems is the fact that they are able to automate your entire workflow. An ERP system is fully customisable and setup to improve your operations by providing a single source for employees to work on, get real-time updates, and use for reporting or sending quotes. It also means that all purchasing, production, and sales go through one system, which allows for better control. This process accounts for every millilitre that gets used in the recipe and automatically makes notes when a certain step in the production has been completed, which allows for reporting to be done at any point in the day with 100% accuracy.

    Regulatory compliance: An ERP system is able to track every item from the receipt of the raw materials all the way to the delivery of finished goods. The entire product journey is traced and logged for the compliance and food safety requirements.

    Data management: Integrated ERP systems provide a central source of data for the business to work from. It tracks procurement, production, warehousing, sales, quality control and more. Stock numbers are updated in real-time, as the raw materials are used up in production. The company will be able to cross-reference this data with orders that still need to be completed and determine whether or not more raw materials are needed. 

    KPI’s and decision making: Another advantage of having an ERP system is the fact that it can display data from certain key areas of your business, such as cost cycling, production output, audit pass rates, inventory levels, plus your sales pipeline. Managers are able to view this business intelligence and use it to make critical decisions around improving different areas of the business. Managers are able to develop strategies or do research and development specifically for each part of the business to improve the areas that are lacking.

    The food and beverage industry is constantly performing a balancing act between keeping up with industry trends while also following all of the food safety laws and regulations. Having an ERP system in place aids businesses to focus on these macro environments as the system takes care of the microenvironment.