Implementing ERP solutions can address these challenges. Below are specific ways in which solutions can be applied in each area to help optimize business processes.
Visibility
Having an ERP system in place is beneficial for enhancing visibility and creating proper links within the manufacturing process.
- Lot tracing capabilities keep track of key data such as lots, IDs, quantities and dates during material movements.
- The ability to trace materials forward and backward as they transition from raw materials to finished goods helps maintain a deep level of oversight over individual SKUs and the overall process.
- Tracking exact usage and costs associated with every transaction helps analyze detailed item and labor costs, and variances.
- Upon producing finished goods, users will have access to production costs all the way down to the individual ingredient level.
Efficiency
Having an ERP system in place leads to reduced operational costs and drives efficiency growth.
- Real-time data and analysis capabilities help identify areas within operations where businesses can streamline processes; this, in turn, cuts costs and reduces waste.
- Better efficiency can reduce lead times and process times, minimize delays, and ensure those on the manufacturing floor are on the same page.
- Automating manual processes increases accuracy and allows workers to focus on higher value tasks.
- Flexibility helps ensure that manufacturing processes align with software capabilities.
- As businesses expand, they need technology that is scalable and can evolve alongside.
- Technology solutions can be customizable to an individual business in the form of enhancements to an ERP system.
- Examples of such solutions include custom form designs, mobile solutions, and integrating RFID and Internet of Things capabilities in the system, all of which can provide businesses with a competitive edge.
Enhanced Data Management
Having an ERP system in place optimizes data management processes and ensures data is readily available for driving strategies and insights.
- Businesses are able to store all their data in a centralized location, and easily import and export it into the system using respective data entities.
- Process manufacturing places a large emphasis on formula and route management and this helps to manage and use that data more efficiently.
- Data can be stored for different versions of the same formula, as well as for the same route.
- Businesses that produce the same and/or different products at multiple manufacturing plants place even further emphasis on optimal data management.
- Better data management means better decision-making and overall efficiency.
Informative Decision-Making
Having an ERP system in place serves as a great tool for businesses to make key decisions using readily available data and tools.
- The flow of inventory can be monitored continuously, which allows businesses to achieve the perfect balance between high and low turnover using inventory and warehouse management capabilities.
- Planning and scheduling production is no easy task, but having all the information in a centralized location eases the process and makes it more organized.
- There are several real-time reporting and business intelligence capabilities that can be utilized with cloud-based ERP systems to help analyze manufacturing operations and identify opportunities to make insightful decisions.
Quality Control
Having an ERP system in place is a great tool to optimize quality control processes on the manufacturing floor.
- Tracking materials as they move through the manufacturing process in real-time ensures standards are enforced and data is readily available for necessary parties such as customers and auditors.
- When raw materials go through quality testing, results are captured and recorded in the system; any items that do not conform to requirements are placed in quarantine, and marked accordingly in the system.
- This ensures the rest of the materials going into manufacturing are not negatively affected.
- If an unexpected issue arises involving finished goods, such as a recall, the system helps track down the exact path the product followed through the manufacturing process along with its components, which is key to eliminating further risk and addressing the issue in a timely manner.
- Product consistency is emphasized during the manufacturing process to ensure repeatability.
- Optimizing quality assurance processes can help businesses protect their brand in the marketplace, and demonstrate to their customers that only products of the highest quality are sold.
Customer Satisfaction
Having an ERP system in place enhances customer service practices and therefore, customer satisfaction.
- Tracking capabilities and accessible data help ensure there are no bottlenecks in the manufacturing process that hinder the ability to provide optimal satisfaction.
- Customers have full visibility into the process, including product usage and quality records.
As food manufacturing businesses grow, it is important that operations are kept running as smoothly as possible. An optimal ERP system helps support businesses through their growth and allows them to enhance the entire manufacturing process, as well as supply chain operations as a whole. By leveraging people, process and technology, ERP solutions provide key benefits for the food manufacturing process, all of which increase return on investment and minimize overall organizational risk. Whether a business is large or small, there are always opportunities for growth in the short and long term. Optimizing processes benefits a business and, in turn, benefits the customers who are the foundation for its success.
