The food and beverage (F&B) business is perhaps the one that needs end-to-end traceability the most. F&B leaders worldwide seek methods to streamline processes throughout the supply chain since openness and visibility at every level are essential for safety, cleanliness, and customer happiness.
Enterprise resource planning (ERP) systems like NetSuite can help them get there. However, it appears as though the industry is overrun by suppliers touting best-of-breed solutions. How can industry executives determine which Food and Beverage ERP system best suit their needs?
Today, we’ll investigate this issue and examine the industry-specific needs that F&B executives should prioritize when evaluating ERP providers.
Who needs an ERP system for food and beverage manufacturers
Business owners may conduct financial reports and keep track of inventory counts using any standard, off-the-shelf ERP system. But any accounting program worth its salt can do the same.
The capacity of these systems to provide data-driven insights that foster genuine business growth throughout the finance, operations, inventory, and sales departments of any F&B firm sets them apart. With this information, managers are better equipped to see opportunities and challenges and respond quickly.
Additionally, ERP software enables executives in the F&B sector to stay up with market demands, such as:
- Planning, controlling, and monitoring inventory
- Monitoring and tracking the supply chain in real-time
- Identification, reporting and resolving of issues
- Compliance with food safety regulations
Thus, it is simple to understand why making this investment is worthwhile in terms of time and money. However, when it comes to a good ERP system, there is no one-size fall. Industry leaders demand one that caters to the F&B population, with integrated features that satisfy the needs and pain points particular to this market, to optimize the return on their investment.
Having stated that, let’s consider the specifications when you start looking for the best F&B-entric ERP system available.
1. Full traceability and lot tracking
According to research, only 33% of customers have complete faith that their food is safe and have high trust in the food system.
As a result, F&B executives are under pressure to earn and keep customers’ trust at every stage of their business operations.
Finding an ERP system that offers automated, end-to-end traceability at every step throughout the supply chain is essential. This will allow everyone, from grocery shoppers to business executives, to understand as much as possible about the food’ journey from farm to plate.
The following information on ingredients and products is tracked as part of this:
- Lots
- Dates
- Quantities
- Movements
Any F&B leader who deals with the public should prioritize traceability as products transition from raw materials to finished goods. This enables interested parties to follow the flow either ahead to learn more about product disposal or backward to investigate the sources of the ingredients.
2. Complete bookkeeping
55 percent of consumers, according to previous surveys, would temporarily switch food brands following a recall. In addition, 15% of respondents stated they would never repurchase the problematic product, and 22% would never buy anything from the impacted manufacturer again.
Therefore, it is simple to understand why the typical food manufacturer pays more than $10 million to cover the expenses related to a particular recall. This money is used for things like:
- distributing information about the memory throughout the supply chain
- locating, obtaining, and preserving the recalled product
- conducting an inquiry into the incident
- putting corrective steps in place to reduce harm and stop recurrence
How might an ERP system help with these initiatives? Finding the exact point in the supply chain where the compromise or contamination happened can be made much simpler with one with excellent record-keeping capabilities.
Look for a system that assists users in maintaining complete documentation, lot monitoring, and tracing to aid in recall readiness efforts. The following records should be kept:
- Labels for purchase orders
- Landing bills
- shipping papers
An efficient ERP system can make the process much easier, yet an F&B producer should also have systemic, internal safeguards to simplify recall response. In the end, a prompt response can assist harmed entities in resuming their attempts to recoup financial losses, revive their brand image, and regain the trust of their customers.
3. Management of recipe
Chocolate chips from Nestle Toll House. Baked beans from Bush. Coca-Cola.
Some foods have become nearly synonymous with their brands because of their distinctive flavors, which, no matter how hard copycats try, they simply can’t manage to match.
Do the producers of these consumer favorites merely gamble on success repeating itself with each batch? Obviously not! To ensure that each batch is consistent with those that came before it and those that came after, they adhere to a stringent and detailed recipe.
Fortunately, ERP solutions have simplified F&B businesses to uphold their time-tested methods while creating new goods.
Finding an ERP system with integrated recipe management resources can help you get there. These tools allow users to keep track of all modifications and updates while recording numerous variations of any recipe. Manufacturers can benefit from the same system, too:
- Keep all recipes in scale.
- Observe and keep an eye on the recipe creation process.
- Record the steps taken throughout production.
- Organize all quality assurance activities.
Additionally, the same resources might help with inventory management initiatives. Users can save a bill of materials (BOM) and a list of current recipes, together with information on each recipe:
- bodily characteristics
- various iterations
- Revisions
- notes on production
To guarantee that only authorized users have access to this private, proprietary information, customers need to look for an ERP system with extensive security capabilities, such as user-based role permissions!
4. Management of formulas
ERP solutions in the food and beverage sector should incorporate features to help verify that all food item formulas are accurate and consistent, in addition to recipe management.
The two are different because while formulas are fixed collections of certain elements, sorted by weight and specific processing instructions, recipes are sets of ingredients and instructions. All weights and processes must be uniformly applied across the production chain to create a specific food item.
An ERP system can not only assist users in storing and updating formulaic instructions, but it can also offer a location to record significant nutritional information, such as:
- Ingredients lists
- information specific to allergens
To guarantee the accuracy of all labeling procedures, this information is essential. Additionally, it’s a requirement for F&B regulatory reporting.
5. Management of inventories
It should go without saying that efficient inventory management is essential to the continued success of any F&B manufacturer.
Inventory tracking is crucial for customer satisfaction and a key instrument in loss prevention. Customers become irate if there are too few things in stock, and resources are wasted if there are too many.
A system that can locate and eliminate waste, continually track inventory movement, use rotation techniques, and prevent unneeded overproduction is required.
Leaders can achieve this difficult balance using an ERP system, particularly if it has an integrated warehouse management system (WMS) capability.
The planning, upkeep, organization, staffing, and management of firm resources are the daily tasks that WMS systems support. They have access to immediate insight into the following data points from any location and at any time:
- Inventory counts
- certain serial numbers
- Numerous product line details
This information enables them to closely check inventory levels and monitor any growth or decline as it takes place.
6. Main data management
Another advantage of ERP in food manufacturing?
It is simpler for industry executives to respond to legislative mandates and international standards that help guide the food industry supply chain. Thanks to the extensive record-keeping that these systems enable.
Companies must create and maintain various programs, data, and records that are accurate, current, and immediately available. Any adjustments or departures from the standard must also be valid and verified.
How are devoted F&B leaders supposed to meet these demands?
An ERP for the food industry converts a manual procedure that employs spreadsheets and external databases into an automated platform. This change significantly enhances and expedites record keeping.
Users can now access, update, and keep records on the following using food ERP systems:
- Methods, tools, and personnel
- controls for inspection
- changing data
- techniques for testing
Several agencies, including the U.S. Department of Agriculture (USDA), the U.S. Food and Drug Administration (FDA), and state regulatory organizations, ensure that F&B firms follow regulations and stay in compliance. An ERP for the food industry can offer the deep visibility needed to achieve these strict requirements and prevent future fines.
7. Planning for material requirements
F&B management can advance their material requirement planning (MRP) efforts with an industry-based ERP system. Maintaining proper stock levels, fulfilling customer demand, and controlling budgets all depend on knowing which resources are needed at any given time.
As a result, the MRP phase integrates inventory management tasks with those of other resources, such as
- schedule of production
- ordering of materials
- financial administration
The outcome? Is a comprehensive platform that enables customers to generate orders with greater accuracy by using forecasts, sales projections, inventory levels, and availability data.
An evaluation of each BOM, which lists the components and quantities required for all production activities, comes first in this step. Users can more precisely determine which materials are needed and when they’ll be using the MRP data mentioned above.
They may eliminate waste, prioritize production, and better respond to changes in customer demand and preference by using this straightforward procedure to manage inventory levels.
8. Performance quality control
F&B leaders are subject to more stringent quality control regulations than most other industries. This is because even the most minor error could have immediate, serious repercussions that could endanger public health and destroy a brand in minutes.
An efficient quality management system is necessary to achieve business requirements and customer expectations. Another justification for the requirement of food and beverage ERP systems like NetSuite, which offer complete forward and backward lot traceability
These enable users to monitor materials as they go through the production process in real-time. They can then monitor, trace, and report on these specifics to the following relevant parties:
- Regulatory organizations
- Auditors
- Consumers
The immediate visibility offered by an ERP system can assist manufacturers in maintaining a stellar reputation in the industry when combined with internal quality assurance and control procedures.
All production runs are made as consistent as feasible by performing quality testing on each batch’s raw materials. Leaders can start quarantine measures if any item fails a quality inspection to ensure that no other supply chain is badly impacted. Once all corrective actions have been taken, they might detain the products without releasing them.
Manufacturers may quickly create customized Certificates of Analysis (CofA) to match their demands, thanks to the availability of many food processing software systems that include both in-production and customer-centric testing capabilities.
Conclusion
Taking Your Business to the next step can only come to reality if you have the right expertise to deliver outstanding solutions. At Seibert Consulting Group, we specialize in delivering modern solutions to businesses that aim at taking full advantage of the eCommerce platform. We always customize our solutions to align with Your Business requirements and goals. Let’s start talking about your project and find out how we can help your business grow. Get in touch with us via our chatbot or email hello@seibertconsulting.com and via our direct line at 760-205-5440.
