How Cloud ERP is changing the food and beverage industry
Cloud ERP means an ERP system in the cloud, that is, you can access from anywhere and anytime as long as you have internet and password. Today, companies are moving to cloud record systems to leverage data for better alignment with customers and partners. According to a recent KPMG survey, the sector is expected to grow from $ 58 billion in 2014 to $ 191 in 2020. And, this is the reason why companies are using the cloud to transform their business!
And it is known that distributors in the food and beverage industry are no exception. In fact, many of these companies are already making cloud accounting an integral part of their business. As a result, they are experiencing growing economies and greater efficiency across sectors. Here are six reasons why moving to the cloud makes sense for the food and beverage industry:
- Increases mobility – Distributors are always in the field of taking orders, checking stocks, tracking opportunities and closing deals. With the cloud, all these updates are made in real-time, so you always have a more complete view of where your company is financial. The cloud makes outdated spreadsheets and balance sheets a thing of the past.
- One time investment – Gone are the old days when you had to buy expensive software and then buy everything again when that version became obsolete, spending thousands of dollars each time. Cloud-based software updates are done automatically, as soon as you make the initial investment, you're ready. The cloud has made the need to buy the same software again a thing of the past.
- Provides ease and agility – The food and beverage distribution industry are not simple. There are many moving parts and data points to be tracked. For example, wine distributors keep track of years to come, types of wines, customer preferences, leads, e-commerce sales, stocks and more, pointing out that there are many rules and regulations associated with the sale of alcoholic beverages - calculating sales tax and respecting state and municipal tax laws. The latest cloud-based accounting programs take a more integrated approach, bringing together customer, financial and sales data, giving distributors powerful insights that can lead to more opportunities and help them stay in compliance with the law and with all the industry requirements.
- Helps to reduce expenses – The food and beverage industry is highly competitive and, many companies operate with low-profit margins. The cloud helps these companies keep costs low by giving distributors real-time access to their inventory. Companies can not only see the available stock in real-time but also minimize the amount of stock they store on their shelves. They also have the option to completely bypass the middleman and place the order directly from the supplier, which helps to save on shipping costs.
- Shop floor control – With cloud-based software, you will get real-time information about overall equipment effectiveness (OEE) to monitor performance improvement and develop a knowledge base of technical expertise to respond quickly to maintain problems that degrade productivity. With production procedures and quality inspections programmed directly in the system, you “operationalize” your processes to minimize human errors.
- Claim risk mitigation – Automating data collection not only helps to track and track all ingredients, but it can also help you comply with food safety regulations - while reducing the risk of recalls. The sooner you can identify potential contaminants, process inconsistencies or quality failures, the sooner you will be able to catch them - preferably before sending them to customers.
For example, Aaron Thomas Company, Inc., a packaging company with a full-service contract for food customers, needs to track 100% of their inventory at all time. After implementing cloud ERP, Aaron Thomas can now perform simulated withdrawals in just seven minutes with all the documentation sent to a customer in less than an hour - a process that previously took several people in up to three days.
Why use the cloud ERP system in food production?
As in any other industrial sector, companies in the food sector also have their own set of challenges: warehouse management, food safety, quality and traceability of products and ingredients. Many food companies face critical issues such as low margins and the need to reduce waste, which in this area can be relevant if the supply chain, warehouse, and distribution are not properly managed.
The best ERP management for food production has specific modules for this industrial sector. Therefore, they are able to manage traceability, recipes and quality control to make food production safe in all aspects: from suppliers to sales. ERPs do not just manage operations, but with the provided data and reports they can show the way to improve processes, increase productivity, reduce waste and increase profits.
The Bottom line
By adding and integrating all processes through a management ERP, it is easier to identify which areas can be improved and which are functioning efficiently. The optimization of the time achieved by adopting such a solution allows employees to devote themselves to other more significant tasks, which helps the company to boost in the long run.
In short, with a management ERP system, any company within the food industry will be more prepared to stand out from the competition and overcome all obstacles that may arise along the way.