Putting margin optimization software to work for you
Margin optimization extends beyond managing spending and preparing budgets. Companies need to manage inventories as closely as possible, predict demand accurately and create new products to meet evolving customer tastes. You need the information to develop profitable promotions, optimize product mixes based on customer trends and apply working capital where it will do the most good. Forward-looking plans and forecasts help companies prepare for and adapt to market changes when the data that they are based on is accurate and truly reflective of a business.
The data from an enterprise resource planning (ERP) system can assist with this. Performing Monte Carlo simulations can help you to evaluate the impacts of cost changes and pricing strategies. You need accurate reports and timely analysis to convert your data into actionable information to support decisions in finance and operations. In today’s highly competitive market, a plan that will take advantage of reaching customers on mobile devices, enabling the ability to monitor performance in a visual dashboard environment, is key.
When it comes to accounting in the food and beverage industry, there is no normal. Payments must take into account several factors, such as grade, multiple units of measurement and attribute information, just to name a few. To be successful, food and beverage organizations must find a streamlined and effective way to manage payment settlements with improved visibility and accuracy into inventory, invoicing and accounts payable.
Through an integrated ERP system, you can see your financial information in real-time allowing you to connect business processes such as accounting, inventory, production, logistics and invoicing. This gives you and other decision-makers a holistic view of all operations. ERP simplifies and automates business processes to track quantity and quality of products to manage payments based on contract type and quality and quantity received. The accounting features of an industry-focused ERP system will automatically track transactions, recording both inventory and accruals and providing the flexibility needed to accommodate complex financial decisions.
Complete visibility of the enterprise system
A food and beverage-specific ERP system enables you to make decisions quickly. They give decision-makers up-to-the-minute knowledge of the statuses of all processes. That means companies have direct, real-time insight into their business, frequently through dashboards coupled with out of bounds alerts based on historical trending.
Companies can base decisions on a wealth of integrated information, and quickly move the needle in a more profitable direction based on this exception-based strategy. The system can automatically notify decision-makers when certain pre-determined conditions exist. With this capability, executives can:
- Determine the best output and price levels to maximize return
- Evaluate pricing and identify when prices can be safely raised
- Streamline inventory costs and expenses
- Remove waste from processes
- Speed time to market
- Manage producer payrolls
Simplified contract management
With ERP and extended trade promotions capabilities, you can handle complex trade contracts for purchasing and selling products based on unique quotas or price break opportunities. ERP systems can even handle different margins when buying from a certain vendor and selling to a certain customer. Full integration with the general ledger provides for accurate, real-time tracking and reporting.
The right ERP system will enable executives and managers to make the right decisions as markets and products change. In an ever-changing, complex market, where prices can change on a dime, where crops can fail, on-time delivery can be crucial, and where every action hinges on the success of another, rapid decision-making can make the difference between soaring profits and growth stagnation.
Accounting for food and beverage commodities can be complicated. Contracts can be structured in a myriad of ways. Payments must take into account several factors, including grade, diverse units of measurement and harvest time, just to name a few. From managing trade promotions, unauthorized deductions, variances, producer payroll, accounting and more, an industry-focused ERP solution implemented by vertical advisors is a perfect fit.