If you are involved in food manufacturing, you know that this is a highly evolved, rapidly growing sector. Although you may specialize in food manufacturing, in order to run a successful enterprise, you must tackle a wide range of business-related tasks and objectives.
Of those objectives, many manufacturers are focusing their attention on waste reduction. If you can relate, then you will benefit from the implementation of ERP software. After all, the greater control you have over your business, the more profitable your company will be.
The Link Between Technology and Food Waste Reduction
Of the food produced globally, approximately ⅓ is wasted. Although waste occurs across all aspects of the supply chain, manufacturers face their own unique challenges. However, there are ways to improve manufacturing practices which will result in food waste reduction.
As stated in this report, more than half of the food waste generated in the UK retail and manufacturing sectors is preventable -- which represents a similar situation in Europe and the United States. By addressing this issue, companies would not only initiate immense environmental benefits but would also benefit from massive annual savings.
This is where enterprise resource planning (ERP) software, such as SAP Business One, comes into play. By implementing a system that offers a range of integrated applications, food manufacturing companies are able to automate and in turn, better manage their businesses from the inside-out.
Although there are many benefits, which we will discuss below, one of the core applications is the ability to better manage expiration dates, resulting in less waste. By optimizing inventory management, this will help you maximize the shelf life of your ingredients and/or products, reducing costly waste.
Supporting the optimization of supply chain efficiency, you will be able to meet your company's unique goals, as you improve forecast accuracy. This level of insight results in less waste and increased productivity -- which has a direct impact on your bottom line.
The Benefits Associated with ERP for Food Manufacturers
As a food manufacturer, you utilize unique processes, which result in your own unique needs. This is why you require a solution that is both specialized and flexible. By introducing an ERP solution into your business, you will be able to better control and even master the exclusive industry challenges you face on a day-to-day basis.
Aside from a reduction in food waste, food manufacturers who opt for ERP also benefit in the following ways:
- You will achieve greater support across all GMP quality, safety and compliance requirements. This will depend on your specific needs. Whether you are concerned with food safety laws or government regulations, including those set by the FDA, BRC, EMA, GHS, and others, ERP will help you streamline all aspects of compliance within your company.
- Improve quality assurance in regards to recipes and ingredient traceability across the supply chain. In turn, you will gain greater control over expiration dates and other variables that contribute to food waste.
- Offers superior potential for business growth, as you increase insight from within your company. By analyzing and monitoring operations, you will be able to continuously improve your business from an inside perspective. As you improve day-to-day operations, increasing overall productivity, this will result in greater long-term success and growth.
The above benefits will help you make more informed decisions and as a result, you will benefit from less waste and a greater ROI. The ultimate goal is to automate as many processes as possible so that you can maximize your most precious resources.
ERP Reduces Food Waste and Increases Efficiency
As a food manufacturer, you know that food waste means that your company is not as efficient as it could be. Unfortunately, this results in higher overhead and reduced profitability -- and if your company is not profitable, it cannot scale.
In addition, as more and more consumers become concerned with sustainability practices, they will continue to look to food companies for solutions. In turn, this will add another component to your bottom line. This is why waste reduction should become a priority of yours today so that you can ensure a profitable, sustainable company in the future.
Of course, from a business standpoint, the greatest benefit associated with food waste is higher profits. As stated in one report, companies could increase their profits significantly by investing in food waste. Offering a 14:1 return on investment, it was found that for every $1 a company invested in food waste reduction, they saved $14 in operating costs.
There are significant savings waiting to be utilized, and ERP offers a comprehensive solution. From expiration tracking to lot management, it's time to regain control of your business.
By addressing the complex nature of food manufacturing operations, ERP can better combat the expiration and spoilage of ingredients, prevent issues with overstocking, and improve a lack of effective tracking. The power lies in data that is accurate and accessible, which can then be used to make more cost-productive decisions.
After all, Thomas Wallace & Michael Kremzar said it best, "ERP is commonly misperceived as a computer system. Not so. It's a people system made possible by the computer software and hardware.
Have questions about how you can reduce waste and increase the profitability of your company? If so, please contact us