4 Reasons Food And Beverage Manufacturers Should Consider Cloud ERP

The food processing industry is one of the largest sectors & one amongst highly scrutinized by government regulatory authorities. However, the food industry is subjected to extremely thin margins, short product life cycles and a constant need to innovate. In order to overcome them; manufacturers undoubtedly need to focus on excellent operational efficiency and optimum product quality. Consequently, a lot of manufacturers are embracing Enterprise Resource Planning (ERP) software to streamline the operational flow. And the ones with budget constraints are heavily adopting the cloud counterpart which brings technology without the hardware investment, but that largely is only one of the many advantages of cloud.

Certainly, deploying a large, on premise hardware and software environment is something enormous for small & micro companies, because this requires installing, integrating, and maintaining multiple servers, computers, databases, and, at times, applications. The efforts and expenses greatly reduce when the implementation happens over the cloud, where they can get to use the pre-installed applications and databases on a subscription basis. This means they not only save money for installation, but also to run the application. But, certainly these are not the only reasons food manufacturers opt for the cloud-based application for their food and beverage industry.

If you too are deciding on which application or platform to opt for, you too will be pondering over the points on which you will evaluate your choices. In this post, we take up top five compelling reasons in the favor of cloud-based ERP for a food manufacturer.

WASTE MANAGEMENT AND INVENTORY CONTROL FROM ANYWHERE ANYTIME

Except food, there is no other industry which is affected adversely by unmanaged inventory, blame it on their low shelf life. Inventory accuracy is critical, not only from a cost perspective but also from a safety point of view. When it comes to food and beverage manufacturing, slow moving inventory often leads to bulk wastage and the investment lost in it can never be recovered.

The cloud ERP helps in Inventory management, which not only tracks inventory as per expiry dates and shelf life, but gives alerts beyond minimum set inventory for a particular item. These updates, status and more so the in/out entries can be seen anytime through a cloud ERP and reacted upon timely considering the dynamics of the food industry.

MAKE SWIFT RECALLS FROM OFF PREMISES

Recalls not only cause an unprepared company to go out of business, but also creates an un-repairable damage to their brand reputation. To limit the damage you need to conduct the recall as soon as possible. Bi-directional tracing is the first and foremost step to be taken as soon as contamination is reported. You need the ability to fast track ingredient from their point of derivation to mitigate risks and the significance of cloud ERP becomes prominent here, because here you can not only quickly track the contamination but also limit the damage. The recall may be conducted even when you are not physically present at your workstation as a cloud ERP can be accessed from mobiles and tablets irrespective of whether you are on a beach or bed. Enabling you to drill down into the specifics of what products need to be removed from shelves and which ones are safe, saving untold amounts of money, energy and time.

SHORTER TIME-TO-MARKET CYCLE

Innovation is the key to excel in today’s thriving food market. But putting your innovation on-shelves before your competitors is all the more important. Using a cloud-based applications drastically accelerates new-product development and helps you succeed in introduction strategies by shortening the time-to-market. How? The cloud ERP enhances collaboration bringing together thoughts, inputs and suggestions of your workforce at multiple site at lightning fast speed. It fast tracks all the stages involved beginning with conception, all through to approval and dispatch, thereby, fastening up the entire process.

GO FLEXIBLE AND HAVE CONVENIENT COMPLIANCE MANAGEMENT

From ISO to HACCP to GFSI to SQF, there are enough domestic and international compliance standards to make a food and beverage manufacturer’s head spin. Many of these certifications require strict process tracking and auditing along with random quality checks and inspections. How about maintaining compliance documentation on an automated cloud ERP system? Since, it can be accessed from anywhere with any Internet-enabled device, it offers more flexibility in sharing data across varied locations and departments. While, the interaction within the company is done via a centralized data through a common interface, the chances of data misinterpretation are lessened and opportunity for collaboration is increased.

PLAN, EXECUTE AND TRACK TO HOLD THE NERVES OF YOUR BUSINESS:

Mobility support for operations help you pilot, execute and track every activity at shop floor. Integrating them with Sales & channel Sales provides a holistic picture of whether the supply is meeting the demand or not. Any discrepancies can be accessed in real-time and immediately acted upon. Even the results of your marketing campaigns can be analyzed as and when they are happening, enabling immediate changes if desired output is not being received.

Conclusively, a modern, cloud based ERP system that is specially designed for food and beverage manufacturers 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. If you do not want to invest a lot of money and still wish to leverage on the full potential of an ERP, Cloud ERP is the best choice to smoothen your operational flow along with playing safe with profit margins that too on a monthly subscription pay per use basis.

Read Also:

Five Essential Tips For Indian Food Industry

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