makes it important to carefully manage
margins and maintain cost visibility.
Supporting systems that improve cost
visibility means more informed decision-making and greater efficiency.
Much like in the automation process, an
ERP solution is vital to predicting the future
of your food and beverage supply chain.
Tools for demand planning are required
from supporting software, as well as
production and procurement planning. The
solution should allow decision-makers to
review trends and historical data, making
it possible to conduct strategic forecasting
to streamline ordering, inventory and
3. Control Compliance
Few industries face the same level of
regulatory scrutiny as food and beverage.
With a wide array of state, federal and
global food safety guidelines to adhere to,
maintaining compliance is a difficult task.
Demonstrating compliance in the event of
an audit is just as challenging.
The more precise the data, the easier
it is to maintain compliance with food and
safety guidelines. When facing an audit
or attempting to gain a certification, the
amount of information you can provide will
directly impact the outcome of the process.
Organizations that make the effort to
carefully track the flow of materials into
and out of their operation centers are
better equipped to address regulatory
issues. Keep detailed records of materials,
processes, maintenance and cleaning
efforts. The more you track, the better
prepared your organization is to address
compliance audits and certifications.
Predicting compliance audits is all but
impossible, making it important to keep
detailed historical records. By keeping
these records, your organization can
quickly respond to regulatory reviews, and
can pinpoint trends that may lead to future
ERP solutions often provide the power
food and beverage manufacturers need to
track and monitor regulatory compliance.
4. Cost Containment
Many costs associated with the supply
chain are difficult or impossible to control,
including fuel rates, labor and materials
costs. So food and beverage organizations
should focus on where costs can be
One cost that your organization can
directly control relates to material waste.
By controlling the amount of raw materials
and finished products lost to waste, your
business will reduce production costs and
improve overall profit margins.
There are many strategies in waste
control, beginning with simply managing
expiration dates. The vast majority of
materials involved in the production of food
and beverage products have a limited shelf
life. Maintaining real-time awareness of
the shelf life of materials in your supply
chain and ensuring that materials are
used properly within that time frame will
dramatically reduce waste and the costs
associated with it.
Similarly, an overstocked inventory is
a hotbed for wasted materials. If your
organization cannot utilize an overstocked
material within its shelf life, that material
is lost to waste. Maintaining adequate
inventory without overstocking materials
by accurately forecasting demand and
maintaining lean manufacturing helps to
Utilizing an ERP solution to aid in your
waste reduction efforts will increase
the likelihood of success. ERP solutions
offer comprehensive materials tracking
capabilities, allowing you to remain aware
of spoilage dates, inventory levels and
trends in quality control issues.
ERP — Supply Chain
Managing the many pieces involved in
a complex food and beverage supply chain
requires a great deal of effort. Fortunately,
the more real-time information you have
on your supply chain, the easier it becomes
to manage. Comprehensive ERP solutions
provide the data you need to automate
supply chain processes, plan for future
demand, manage compliance, control
waste and integrate multiple locations.