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7 signs your dairy company is ready for a farm-to-shelf ERP solution

INSIGHT ARTICLE

Today’s dairy producers, processors and distributors contend with several challenges, including increasing global competition, niche market sprawl and the steadily rising cost of raw materials and energy. The appropriate enterprise resource planning (ERP) solution helps mitigate the effects of these challenges and provide long-term benefits such as increased efficiency, improved visibility, reduced operating expenses, expanded delivery channels, enhanced customer relationships and greatly improved information sharing and performance management. It’s no wonder today’s leading dairy companies view ERP as a strategic investment.

However, the risks to an organization for not making a well-informed, industry-specific selection and engaging in a well-planned ERP implementation can result in huge unanticipated costs, extensive configuration and integration, extended project timelines, and poor ROI. Therefore, it’s critical to first determine if your organization needs an ERP solution. 

If your organization is experiencing one or more of these business conditions, it is time to seriously consider implementing an appropriate, industry-specific ERP solution. 

1. Fast organizational growth: You have recently opened multiple production or distribution centers in various locations, and there is an increase in production, processes and workforce.

2. Lack of control and real-time reporting on dairy financials: You face problems in automatically managing milk market accruals, milk market pricing, milk accountability reporting, class and milk component structure changes, milk receipt and batch prepayment, final settlement processing and producer payroll.

3. Utilization of manual processes to manage inventory: You are using spreadsheets and other manual tracking and data collection methods to manage inventory, reclassification such as milk class and components, and quality control and recalls.

4. Utilization of manual processes to manage production: You are using spreadsheets, white boards and other manual tracking and data collection methods to manage dairy production such as recipe scaling, fill-line scheduling, and tank balancing and batching, and blending operations.

5. Lack of operational transparency: You are not able to easily access real-time data and reporting on orders, inventory, production and delivery from any point in your supply chain operations. You face challenges accessing critical company performance data.

6. Little ability to track and accurately manage: You are unable to accurately track and manage key activities from trade promotions to producer payroll to consumer feedback and preferences in order to more effectively and proactively compete in the market.

7. Your current systems are disparate and becoming obsolete: Your existing solution(s) are disparate and no longer effectively support your organization’s enterprise operations, having a negative impact on growth, performance and profitability.
 

 

 

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Chris Jones
Principal,
Food and Beverage

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