The food and beverage manufacturing companies face increased competition these days, not just from the traditional businesses, but from a lot of mom and pops businesses that have mushroomed in the recent times. With limited investment and resources, these businesses are giving even the established brands a run for their money. This increased competition has forced the food and beverage manufacturers to go back to their drawing boards, and think of ways to beat the competition.
The conventional wisdom says that in order to stay ahead of the pack, the manufacturers need to develop top quality and cost-effective products. But how is that possible, given there is no dearth of challenges for them?
The smartest way of achieving it is by employing a tool such as a specialized software for food and beverage industry. More and more manufacturers are getting increasingly aware about the benefits an ERP for food and beverage industry can have for their business. But if the ones that are getting increasingly aware of those benefits are your competitors, this isn’t a good news for your food manufacturing business. Don’t lag behind. Read the five important things that you don’t know about a food and beverage software, but your competitors know, in this blog:
ERP software helps manage inventory and reduce stock-outs & wastage
For the food manufacturers, planning and managing the perishable inventory is often a tricky task. On one hand, they need to ensure that they have enough inventory in stock to support the production and avoid stock-outs. On the other, they can’t afford to have excess inventory and risk wastage. This is where an ERP for food and beverage industry plays a major role. It is equipped with forecasting tools that help anticipate accurate demand using the historical sales data, trends and patterns of sales. Through this information, businesses can proactively adjust their inventory. Additionally, through a variety of functions including lot control, FIFO, expiration dates, shelf life management etc., software for food and beverage industry allows businesses identify dead stock and soon-to-expire products, and thus reduce wastage, minimize the losses, and maximize the revenues.
Food and beverage software helps protect brand image
Remember the furor over a dead lizard being found floating inside a sealed bottle of coca cola in Ludhiana, India, a couple of years ago? In such cases, the reputation earned by big brands over the years just goes for a toss within minutes. Food and beverage manufacturing companies realize these days that more than the branding activities, it is an ERP for food and beverage industry that can help protect the brand image. It helps to instill good manufacturing practices, ensures quality at every stage of production and restricts entry of not-just-right quality products into supply chain. Before receiving, during production and before shipment, a number of quality tests can be applied to ensure that the product is as per the quality standards expected by the company and the consumer. It comes with lot traceability, whose specific capabilities such as product recalls, farm-to-fork traceability, etc. help the manufacturers manage complete tracking and tracing of all ingredients used in processing of the final product back through the supply chain, and make speedy as well as accurate recalls if necessary. This way, the issues affecting the supply chain can be swiftly identified, reported and resolved, and the manufacturers can retain the faith of regulators, and consumers, as well as protect their brand image.
ERP for food and beverage industry supports regulatory compliance
The food & beverage industry operates in a highly regulated, and strictly controlled environment, and the scope of error for the manufacturers is very less. Also, presently more food products come from countries with lower health and safety standards, prompting the regulators to push for stricter regulations and guidelines. Thus, compliance with food safety regulations remains a major challenge for the food and beverage manufacturers, who turn to food and beverage software for help. It helps themmeet all the local, regional, national, as well as international regulatory requirements, cGMP norms, labels plus FDA reports generation and record maintenance.
ERP is key to unlock the future of food manufacturing
Various reports have suggested that in future, the food manufacturers are likely to go natural, so as to meet the needs of the increasingly aware consumers who wish to have products with nutritional and functional benefits. Moreover, the manufacturers are also likely to turn to process automation and digitization, with an eye on increasing their operational efficiencies and meeting customer orders. They are not going to venture in the future alone, but with an ERP for food and beverage industry, which holds the key to unlock the future of food manufacturing. The manufacturers know that through its specific capabilities and functionalities, a software for food and beverage industry can help them with the aforementioned needs.
ERP is not a liability, but an asset
Last but not the least, your competitors know that an ERP system is an investment. They know that it is an asset, and not a liability for their business. They know, for all the remarkable benefits such as streamlined processes, improved productivity & efficiency, enhanced business visibility, quality analytics & reporting, meeting industry & regulatory compliance, and reduced costs & risks, etc. which it brings to their business in the long run, the cost of investment is astonishingly affordable.
In a nutshell
Successful food & beverage manufacturing businesses know that an ERP for food and beverage industry helps manage the inventory efficiently, protects their brand image, helps meet industry as well as regulatory compliance, and the challenges and needs of the future. Most importantly, they know that investing in an ERP solution is not a liability to the business, but an asset. If you are ignorant of these facts, you risk lagging behind the competition. Act now, and get an ERP software for your food and beverage manufacturing business today.