How Food Manufacturers Can Use Existing ERP to Optimize Supply Chains

1. Unlock End-to-End Supply Chain Visibility Already in Your System

Most enterprise resource planning systems have a lot of data that can be utilized to better understand the supply chain. This could include shipment tracking information, production data, and supplier purchase orders. But this visibility often stays siloed in separate ERP modules or is underutilized.

The ERP value opportunity: As part of a value realization strategy, make use of the existing dashboards and analytics tools in your existing ERP to create real-time visibility into the supply chain.

• Integrate and visualize data. Ensure your ERP’s inventory, procurement, and logistics modules are connected in order to show live material availability, supplier status, and delivery timelines.

• Leverage alerts and KPIs. Take advantage of any real-time alerts your ERP has for critical events like low ingredient stock or delivery delays.

• Use traceability features. With product recalls and compliance regulations front and center for food manufacturers, tap into any existing batch and lot-tracking functions to trace ingredients from suppliers to finished goods, strengthening your preparedness for quality control and compliance.

When used effectively, ERP visibility allows for informed decision-making that positively impacts operations. Instead of reacting to problems after they happen, your team can anticipate issues and respond immediately.

ERP value realization: The main benefits include faster decisions, fewer surprises, and improved control over costs and quality.

2. Use Demand Forecasting for Supply Chain optimization

Does your ERP system have forecasting and production planning functionality? Many ERP systems do but a lot of manufacturers only use them occasionally or rely on manually updated spreadsheets. This can lead to gaps or inconsistencies between actual demand and production, resulting in waste, stockouts or overstocks.

The ERP value opportunity: Think of ERP-based forecasting as a continuous process that uses current data to align supply with demand.

• Use historical and seasonal data. ERP systems store years of your sales and production data. Analyze trends over time to predict seasonal peaks, promotional increases, or shifts in consumer behavior.

• Automate forecast updates. Leverage the automated forecasting feature many platforms have, to automatically adjust forecasts as new sales data flows in.

• Integrate with production planning. Use demand forecasts to align production scheduling with procurement to optimize raw material usage and minimize spoilage.

For example, a bakery manufacturer might use its ERP’s forecasting tool to detect an early rise in demand for gluten-free products. Instead of ramping up production reactively, planners can adjust ingredient purchasing and scheduling weeks in advance, reducing rush orders and waste.

ERP value realization: The business value is less waste, lower inventory costs, and the ability to respond faster to changes in customer demand, all without the cost of new software investments.

3. Strengthen Supplier Collaboration Through Centralized ERP Data

Are your teams using email and spreadsheets to communicate with suppliers? Much of this interaction could be automated and run directly through your ERP software.

The ERP value opportunity: Use existing supplier management features within your ERP to create a collaborative supply network with full visibility.

• Supplier portals and scorecards. Most ERP platforms offer portal access or shared dashboards where suppliers can view order forecasts, delivery expectations, and performance metrics.

• Keep an eye on supplier performance. Use your ERP’s analytics tools to evaluate suppliers on key metrics such as on-time delivery, quality, and responsiveness.

• Automate compliance tracking. Instead of manually managing certifications or audits, set automated reminders for renewals within your ERP.

Bring supplier collaboration into your ERP system to eliminate siloed communication and reactive responses to disruptions. If one supplier signals a potential delay, the procurement team can use ERP data to identify alternate suppliers and reassign purchase orders.

ERP value realization: Encourage stronger supplier relationships with fewer delays and greater agility to pivot when challenges happen.