Food & Beverage Industry Overview
The food and beverage industry is remarkably diverse. There are thousands of different products and many types of processes, including fresh, frozen, chilled, and long shelf-life goods, that serve customers ranging from mega-retailers to small chains, independent stores, catering services, restaurants, and exporters.
To meet strict food safety mandates, a food ERP system must enable lot control and traceability, both forwards and backwards down to a container level. Food safety mandates also require advanced “First Expiration, First Out” (FEFO) inventory management. In addition, processors should to select enterprise software that helps them track extensive quality testing with fully-integrated Laboratory Information Management System (LIMS) capabilities.
Recipe and Formula Management
In terms of recipe and formula management, a unique feature processors need from their enterprise systems is the ability to identify specific nutritional values that result from the composition of a recipe. This system must also offer ways to monitor potency, volume, and variable weights when developing formulas, as well as the ability to adjust formulas on the fly to account for concentration variations.
For cost control, processors must keep costs streamlined to protect margins. A food ERP system must track return on investment (ROI) metrics for a reduction in operational costs, improved utilization of resources, reduction in waste, recall management & avoidance and other key metrics.
Demands of the Food & Beverage Industry
With over 30,000 companies, and over 3,900 having more than 100 employees, the food and beverage industry is highly competitive and must continue to be aware of the following demands:
- Meeting retailer needs
- Responding to trends
- Managing supply chains
- Managing quality against government regulations
- Grid of industry customers and their logos
- List of industry-related blog entries
Critical Requirements of a Food ERP System
Food and beverage manufacturing companies should evaluate the following critical requirements during their enterprise software selection:
- Customer Relationship Management (CRM Software)
- Quoting and Estimating
- Order Processing Available-to-Promise (ATP) and Capable-to-Promise (CTP)
- Recipe Management
- Laboratory Information Management Systems (LIMS)
- Document Management
- Forecasting and Demand Planning
- Materials Management
- Mixed Mode Manufacturing
- Lean Manufacturing
- Lot Control, Traceability and Recall Management
- Supply Chain Management Software
- Advanced Manufacturing Planning
- Warehouse Management Software
- Plant Equipment
- Cost Accounting