4 Reasons Food and Beverage Manufacturers Should Consider Cloud ERP
Shortened product lifecycles and slimmer margins mean you need to focus on both operational efficiency and product quality. At the same time, you need the ability to quickly track ingredients from their point of origin to mitigate risks and respond to recalls.
That means the systems that run your business need to give you visibility, control, and information that you can use to make rapid decisions. A modern, cloud enterprise resource planning (ERP) system that is purpose-built for process manufacturers—like you—connects your entire supply chain, collecting information at key points in production so you can get the insight you need to make more-informed decisions about your business.
Here are four compelling reasons why you should consider cloud ERP:
1. Inventory Control
Inventory accuracy is critical, not only from a cost perspective but also from a safety point of view. Green Flash Brewery relies on its cloud ERP software solution to pinpoint ingredients that go into its beer recipes. The system tracks each aspect of inventory at the lot or container level, while keeping a detailed audit trail at each step of the process. Using barcoding and labels eliminates human error as inventory is checked in at every stage of receiving, production, and shipping.
2. Quality Oversight
As more food and beverage manufacturers source ingredients from global suppliers, rework, waste, and product recalls become a higher risk. For Aaron Thomas Company, a full-service packaging company for the food industry, ensuring that proper quality checks are executed at the right times was a challenge. Paper-based processes leave room for error but with an ERP solution, standardization and control can be automated and audited. The company can now instantly monitor each step of the production process to ensure that proper checks have been completed.
3. Industry Recalls
Recalls represent a major disruption to normal operations so your best strategy is to prevent them at all costs. Tracking every movement of raw materials and finished goods–both inside and outside of your facilities–can prepare you not only for the unlikely recall but provides documentation for the very likely audits that you will encounter. Cloud ERP improves process transparency so you know if there are quality issues ahead of time.
Keeping up with industry compliance can be its own full-time job. Rather than simply maintaining compliance documentation, you can create business processes that result in compliancy and enforce operational rigor and result in compliant behavior and the associated documentation. Your systems should help make this process as streamlined and effective as possible. A cloud-based ERP system supports HACCP, process flow charting, statistical process controls, electronic signatures, and more to move from a reactive to a preventative safety culture.
Posted on Thursday, October 6, 2016