Food ERP is a need of the hour for food manufacturers because this industry faces significant challenges especially from regulatory bodies. These regulations are not easy to implement and require a lot of paperwork and planning as well. Moreover you have to maintain profitability and address consumer demand at the same time.
Other than the regulations, inventory management is a major concern for industries. Majority of food items are perishable so there is always a risk of loss if not processed in the given timeframe. To avoid the loss, inventory should be ordered optimally considering the demand. To know about the optimal quantity of inventory you need to have food ERP.
Once you find the optimal quantity, a process can be initiated. Here lies another challenge: Collective efforts. A system will perform at its maximum potential only when all the segmentations are working for a single cause. If there is no sync, purpose cannot be fulfilled in minimum time and resources. The level coordination required between various departments of an industry is achieved only when you deploy food ERP. Here is the list of benefits of food ERP:
- Improves accuracy
- Optimizes operational performance
- Decrease input cost
- No delays in production
- Improves procurement
The process manufacturers, including the food and beverage manufacturers, have to deal with issues including raw material scarcity, managing the perishable inventory, maintaining food quality & safety, optimal production, and thinner margins.
What this means for them is that they need to put greater focus on inventory control, product quality, regulatory compliance, and overall operational efficiency.
Additionally, they also need to have strong traceability functionality in place to quickly track ingredients from point of origin to the point of consumption in order to mitigate risks and swiftly respond to the recalls.
That is why lean manufacturing gains significance in the food and beverage industry.However, most food manufacturers lack the proper infrastructure which houses lean manufacturing principles and other requisite tools that help them deal with the aforementioned issues.
Even for any skyscraper to stand, it needs a robust foundation to anchor its structure to the ground.
An enterprise resource planning (ERP) software has over the years proved to be the foundation on which the structure of lean manufacturing principles can be erected.
