The food and beverage (F&B) industry is evolving at a rapid pace, and F&B business owners are always on the lookout for ways to give their business a competitive advantage. This could mean using higher-quality ingredients, trying out an innovative new manufacturing process, or implementing a new technological device that could help the organisation cut costs. Having better control over business operations has become paramount in dealing with an ever rapidly changing economy, and being agile helps businesses attain competitive advantage. Therefore, you should seriously consider giving Enterprise Resource Planning (ERP) solutions a shot to boost your bottom line.
Read on to find out how ERP software solutions can benefit your F&B business.
1. Simplified end-to-end traceability
It’s crucial that manufacturers and distributors have the ability to track vital information, from product ingredient quality to final delivery. An ERP system plays a key role in building and maintaining consumer trust. Thus, it is imperative to have an ERP system that provides end-to-end visibility when it comes to inventory movement.
Additionally, ERP solutions help solve the crucial issue of human error that might arise from manual data entry. It helps businesses take note of important information and be confident that the data itself is current and accurate. This helps businesses avoid logistical mistakes, whereby one small error can be extremely costly.
In today’s context, consumers are savvy and intentional of where their products come from and how they are made. Having a simplified end-to-end traceability process via the usage of an ERP software solution provides insight into whether the manufacturers’ materials were responsibly and sustainably sourced. The beauty of having an ERP software solution lies in its ability to do the heavy lifting of maintaining and updating records, preserving, and adding to them, throughout your ingredients’ journey from source to factory, and finally to store.
2. Effective Stock Management and Tracking
The importance of stock storage and scheduling is sometimes overlooked. On one hand, you must maintain sufficient stock of raw resources to meet demand. On the other hand, you don’t want to keep too much inventory and risk wastage due to unsold goods or supplies. F&B businesses must ensure that commodities reach consumers or suppliers in a fresh and usable condition, which can be difficult when profits and cash flow are at stake.
Perishable stock management can be simplified using an ERP system such as Microsoft Dynamics 365 Business Central, which helps improve traceability and makes managing sell-by-date commodities easier. Furthermore, a strong ERP software solution will make inventory monitoring easier by incorporating a range of features such as lot control, first-expiry first-out management of inventory, batch tracking, predictive stock management, and more. Businesses can identify dead stock and products that are about to expire, as well as make smart inventory and shipping decisions, therefore reducing wastage.
3. Inventory Management and Forecasting
A balanced inventory is a key component of any successful F&B business. ERP software solutions are built for handling complex inventory and sales order processes. Considering the volatility of demand in this industry, it would be vital to have an ERP system that is capable of carrying out stock tracking and management, as well as sales and purchase order management.
ERP software for F&B companies must also be integrated with accurate forecasting so that the business can replenish stocks before they run out. A good ERP software solution can help F&B companies take the guesswork out of anticipating consumer demand and managing their supply of inventory.
Running a F&B company is no simple feat. Make it easier by implementing an ERP system to manage the backend processes and keep the essential functions of your business moving like a well-oiled machine. Find out how Naviworld can help you implement an ERP system successfully today.