Why the food industry needs to use ERP
Blog Written By | ERPFocus
Selecting a food industry ERP – what to bear in mind
Food industry manufacturers need ERP. What factors are important that might not apply to another business also in the ERP market?
Regardless of the food industry sector, all need outstanding traceability in both directions, from the supplier to the customer and back from the customer to the supplier. This requirement comes from government and industry regulation and from concern related to consumers who have become ill from eating a wide variety of food. No one wants to be the cause of illness or death and if unfortunate occurs, you’ll need to be able to document the whole path and quickly determine where the problem began and fix it.
Not the relationship kind, but use by and expiration dates. Most products in the food industry must be consumed within a short period of time. Food ERP systems must be able to track dates from production, shipment, or even from the harvest. Food must be processed and shipped within a time limit. Then it must be delivered to a grocer so that business has time to stock it and sell it within the product’s life.
Food industry segment
The food industry has many different segments. A meat cutting operation has only a little similarity with a fruit cannery. A processor that mixes peanut butter uses different methods than another business that packages fresh vegetables for salads. Find an ERP system that can demonstrate proven value to other businesses in your segment. Develop your own list of requirements that meet the specific needs your business has. Think on what requirements another business in the food industry might have. You’ll recognize when a potential vendor doesn’t understand your segment.
Coproducts and byproducts
These are common in many food industries and less common in many other industries. So, a good food industry ERP system should recognize both and include both as inventory related to the basic food business that can be used. A byproduct of food might be used as animal feed rather than treating it as waste. Distillers grain is a coproduct of corn and a source of additional revenue. Using an ERP developed with your industry in mind can open up by and coproducts for your business you have not yet been able to tap into. Someone might buy the stuff you have been paying for and hauling as waste.
Foodware 365 is a food & beverage-specific ERP system that is fully integrated with Microsoft Dynamics 365 Business Central. This fully loaded system is the perfect match for your food industry business, ensuring all your needs and challenges are taken care of and will grow with you over time. Contact allonline365 on firstname.lastname@example.org or +27 (21) 205 3650 to speak to one of our Foodware 365 consultants.