Food And Beverage Beginner'S Guide To Erp

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FOODANDBE VER AGEBEGINNER’SGUIDE TO ERP

Beginner’s Guide to ERP:Food & BeverageFood and beverage companies are facingdramatic changes to production due toour evolving food preferences, includingthe desire for flavors and foods fromaround the world. Heightened regulatoryscrutiny from regulators at the nationaland international levels as well asshrinking profit margins also increase thepressure for traceability and productivity.The food and beverage industryfaces complexities at every turn. Thechallenges highlight the ongoing needfor business software solutions that canaddress and simplify complexity in eachfacet of production and operations. Forfood and beverage businesses, enterpriseresource planning software is a criticalneed, designed to solve the industry’smost pressing problems.Challenges facing the food and beverage industryThe food and beverage industry is a dynamic, ever-evolving sector. Companies today grapple with keyoperational and competitive threats. Among the core challenges facing the industry are:»Changing Consumer Tastes. Consumers today expectaccess to flavors from around the world, requiring newsources for ingredients from an increasingly globalsupply chain»Managing Waste. Managing costs is a majorconsideration, and companies need to reduce waste byreworking their operationsto be more productive andefficient in accurate tracking of expiration and use-bydates with more productive and efficient processingand accurate tracking of expiration and use-by dates»»Traceability. Buyers and end-users want to knowwhere their food comes from. There’s an expectationthat companies are transparent in the sources of theiringredients and their production methods. In the eventof a recall, ERP software traceability functions allow forfaster responses and more accurate communication»Sustainability. Customers today want to supportbrands that demonstrate a commitment tosustainability in how food is made, packaging that’sused, and how production impacts the environmentHealth-Conscious Consumers. Discerning consumersare paying attention to labels, ingredients andnutritional information. Businesses must also providefor various dietary requirements and restrictionsFoodBusiness ERP: Beginner’s Guide2

Everything you’re looking forin a software solution.Enterprise resource planning software is used by businesses in many industries tostreamline operations and provide better insights and operational efficiencies. ERPsoftware integrates all major areas of operations, including finance, scheduling,supply chain, operations, production, sales and marketing, customer service andhuman resources.Delivered via the cloud or on-premisesservers, ERP solutions are designed toreplace disparate systems that often arepoorly integrated if at all.While each department may have its ownscreens, uses, restrictions and functionswithin an ERP solution, the product’sstrength is in its integration. Data are sharedthroughout the enterprise, with informationcollected, stored and analyzed centrally. Inthis way, an organization becomes moreFoodBusiness ERP: Beginner’s Guideself-aware, able to connect technologies,people and information.The positive impact ERP software can haveon a food or beverage company can beseen at the departmental level, with moreconsistent data and insights from otherareas. It’s also significantly helpful up to theC-suite, as it provides high-level intelligenceto track progress and gauge the next steps,helping the company leaders to make betterinformed decisions.3

The benefits of an ERP solution.There are significant advantages to having an ERP solution driving yourfood or beverage company. Companies that invest in ERP software seeROI quickly, making it an investment for both the short and long term.Among the core benefits are:IntegrationComplianceWith enterprise resource planning software,the myriad areas of your business areconnected like never before. With a singlesource of data truth, you can be confidentthat information, including reports,dashboards, and analyses, are consistent.In the United States, food and beveragecompanies continue to grapple with therecently enacted Food Safety ModernizationAct (FSMA). Those guidelines shape howbusinesses and their suppliers identify,mitigate, measure and report on risks tofood safety. The stringent guidelines, andexpectations for active safety measures,require modern solutions to track and report.VisibilityERP software gives you a window into yourbusiness like no other. Your ERP solutiongives you insights into all aspects of youroperations, allowing your employeesto complete for accurate forecasts,identify operational logjams, and improveproductivity at every aspect of the supplychain, from ordering to warehousing totransportation.Streamlined business processesAn ERP system can give you the opportunityto take a close look at your businessprocesses. It can automate processes suchas document flows, approvals, and datatransfer, often eliminating those that hadpreviously been done manually.CollaborationEmployees can access information fromacross the enterprise when they needit. Colleagues can view, share, edit anduse information in real-time from thesame documents and screens, improvingcollaboration and clarity.FoodBusiness ERP: Beginner’s GuideData securityIncreasingly, states, federal governments,and international agencies are issuing strictdata security and privacy guidelines. Thesemandates require companies to carefullytrack how private data on customers,employees and consumers are used, shared,stored and sold. A robust ERP systemprovides the tools to remain compliant withthe ever-increasing and complex data laws.4

The benefits of an ERP solution cont.GrowthERP systems are designed for scalability,giving your business the support to expandinto new markets, develop new SKUs ormanage seasonal variances in productionand products. Your ERP system is builtto accommodate rapid change in size,eliminating logjams in purchasing andinstalling new server and storage capacity.solution, you can finally retire outdatedlegacy software systems, many of whichrequire patches and customizations to doall the work you need completed. An ERPsystem allows your IT team to focus onsupporting one system and its users. You’llalso reduce training costs for employeeswho will no longer have to master multiplesoftware applications.Competitive advantageBetter planningFood and beverage companies need acompetitive difference-maker to stand outin an industry with tight profit margins andfierce competition from established brandsand disruptive upstart companies. Your ERPsolution gives you productivity, insights andoperational excellence to push you ahead ofthe competition and keep you there.One of the most significant benefits ofan ERP solution is the availability of data.Critical information you need to makeimportant decisions is available in themoment of need and in real time. For higherlevel planning work, your ERP solution cangenerate historical insights to help withlong-term strategy.MobilityCustomizationYour ERP solution needs a mobilecomponent that can provide the sameinsights and data no matter what operatingsystem or device you’re using. Mobilefriendly applications give you access toinformation needed at any time fromanywhere. With increasingly mobileworkforces, this functionality is a must.Your business needs an ERP solutionthat can accommodate the unique needsand structures of your organization. ERPsystems today are highly customizable,allowing for the creation of labels, fields,functions and reports that meet yourbusiness needs. You can also integrate mostERP systems with other leading businesssoftware, including customer relationshipmanagement and business analyticssolutions.Customer serviceWhen your food or beverage companydeploys an ERP software solution, you gaina single view of customers. This capabilityconnects sales and marketing interactionswith customer support and financefunctions. Use these features to ensure allareas of the business know about customerissues, billing challenges, discounts andunique needs.Focused IT expensesYour internal IT department often facesa Herculean task in maintaining multiplebusiness systems along with end-users’hardware and software. With an ERPFoodBusiness ERP: Beginner’s GuideEfficiencyWith streamlined processes, collaborativeworkforces and shared data and reporting,your ERP drives efficiency at every level ofyour organization. Your food or beveragebusiness will be optimized, with a reductionof manual and redundant processes thatfree up resources to focus on revenuegeneration.5

Core features for a food and beverage ERP.You want a food and beverage ERP that delivers features that advanceyour business. Here’s a closer look at some of the main capabilities of acomprehensive food ERP system.ManufacturingManagement» Support multiplemanufacturing modes,including process andmixed-modeInventoryManagementPurchasing» Warehouse management,including lot, sub lot andmultiple locations» Purchase requisitions» RFP management» Recipe management» Lot traceability forward andbackward» Batch management» Multiple units of measure» Allergen tracking» Shelf-life managementincluding expiration datesand use-by dates» Multi-level approvalprocessing» Quality assurance» Resource schedulingmanagement, includingequipment and employees» Technical dataconfiguration» Transaction management» Use of barcoding and RFdata for operations» Sampling» Production cost accounting» Quality control» Product packaging» Inventory costing» Capacity planning» Replenishmentmanagement, includinginter-site transfersFoodBusiness ERP: Beginner’s Guide» Encumbrance accounting» Purchase orders» Subcontractor management» Invoice tracking» Pricing and contractmanagement» Returns management6

Core features for a food and beverage ERP cont.More capabilities of a comprehensive food ERP system.Streamline YourOperationsSalesManagementCustomerService» General ledger» Pricing and discounts» Contact management» Accounts payable andaccounts receivable» Quotes, contracts and openorders» Salesforce automation» Budgeting» Order preparation, delivery,packing and shipping» Expense Management» Fixed asset management» Cost accounting» Analytical accounting» Marketing campaigns» Customer support» Product configuration,options and variants» Inventory inquiries andallocations» Delivery scheduling andshipping» Invoicing and billingreminders» Customer returns» Sales commissions» Inter-company and intersite sales» Bill of lading and exportdeclarationFoodBusiness ERP: Beginner’s Guide7

How FoodBusiness ERP helps your business.The right ERP software gives you real-time insights into every phase of production.Formula and recipe management.You need a flexible solution that ensures product consistency in each batch, every time.As tastes evolve and customers demand new products, integrated recipe managementallows for faster development, while yield calculations and tracking help eliminate wasteand rework.Quality managementEnsure accuracy and consistency with testing and reporting of raw materials,intermediates and finished products for meeting GMP, HACCP, SQF and BRCGSstandards. Complete inspections of packaging and production throughout the processwith automated recording and historical analysis capabilities.Planning and schedulingYour business needs to manage multiple inputs, equipment, employees and shifts. Useintegrated tools to manage purchase orders and in-progress orders, simulate potentialschedules and use drag-and-drop functions to schedule people and machines.Warehouse and inventory managementWaste is the scourge of the industry. Reduce inefficiencies with end-to-end integrationof inventories that reduce write-offs due to spoilage, automate reordering, and manageshelf lives and expiration dates. Select a solution that supports technologies such asbarcode, uses mobile devices and directed put-aways, picking and scheduling.FoodBusiness ERP: Beginner’s Guide8

How FoodBusiness ERP helps your business cont.Tracking and traceabilityFood safety must be a priority for every food and beverage business. Your ERPsoftware should allow for robust traceability and allergen tracking that helps you.Production schedulingSchedule production runs using user-defined criteria by the day, shift or hour. Updatework orders in real-time and maintain consistency with tracking of ingredient quantitiesfor each batch.Continuous flow manufacturingWhen variability is essential for your business, select a food and beverage ERP solutionthat can predict yields by comparing planned inputs and outputs and plug those intorecipe formulas.ComplianceMaintain FSMA compliance with with an ERP system that records key safetyactivities, generates reports and manages components including recall management,expiration management, sustainability practices, labeling, and allergen-free productionenvironments.Multiple site managementIf your food or beverage company operates across multiple sites, be sure to select asolution that integrates operations across locations. Your ERP software should beable to source ingredients from multiple warehouses and manage across multiplelegislative entities. Your ERP software should also be able to manage consolidatedgroup accounting and reporting easily and be able to scale as new locations are broughtonline.FoodBusiness ERP: Beginner’s Guide9

How to choose the right food and beverageERP system.NEXTEC’S FOODBUSINESS ERPDELIVERS SOFTWARE designed forfood and beverage manufacturers,processors, and distributors to run theirbusinesses through a single system.With FoodBusiness ERP our customersstreamline financial and operationalmanagement, meet and exceed productsafety and quality standards, reduce wasteand increase efficiency by simplifyingproduction processes.Companies like ARA Foods, Baked byMelissa, and Milos Tea trust FoodBusinessERP to manage food quality, compliance,warehousing, inventory, manufacturing,R&D, reporting, sales, purchasing, finance.FoodBusiness ERP is powered by Sage X3,built and delivered by NexTec’s food andbeverage industry experts.PartnerWhen it comes to selecting an ERP solution for yourbusiness, consider the following:Identify a project team that will have the time and resources to assess,purchase, implement and optimize the new ERP systemComplete a needs assessment to determine the features, functionality, andcapabilities your business requires for a new solution. This assessment shouldinclude an evaluation of existing tools that may be eliminated as an ERP systemcomes onlineDetermine the criteria for evaluating your vendors, including your prioritizedneeds. A matrix of desired items, appropriately weighted, can help evaluatorsand aid in the final selectionFoodBusiness ERP: Beginner’s Guide10

Contact us at FoodBusiness ERPand schedule a demo to learn more.SCHEDULE A DEMOAbout FoodBusiness ERP from NexTec GroupFoodBusiness ERP is software purpose-built for food and beverage manufacturers.It is built in Sage X3 and configured by NexTec industry experts to deliver a completeContact us to learn more:food manufacturing business solution. Over the past 25 years, our ERP and business844-466-8477process experts have helped organizations across North America streamline businessinfo@foodbusinesserp.combeverage manufacturing industry has resulted in some of the most respected foodfoodbusinesserp.comand beverage companies managing their day-to-day operations using our platform.processes and lower costs. Our specialization in developing solutions for the food andFoodBusiness ERP by NexTec is built to make food better.FoodBusiness ERP: Beginner’s Guide11

food and beverage businesses, enterprise resource planning software is a critical need, designed to solve the industry's most pressing problems. Beginner's Guide to ERP: Challenges facing the food and beverage industry The food and beverage industry is a dynamic, ever-evolving sector. Companies today grapple with key operational and .

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