6 Ways a Food ERP (Enterprise Resource Planning) Pays for Itself

ERP Food and Beverage

Imagine a tool that not only streamlines your business operations but also becomes a catalyst for financial growth. Enterprise Resource Planning (ERP) systems are not just a solution; they are an investment for food businesses with remarkable returns. In this blog, we delve into the myriad ways ERP systems pay for themselves, turning what may seem like an expense into a strategic asset for your organization’s bottom line. 

What you get out of your ERP will depend on what you put into it. For example, if you enable multiple departments and business functions to be a part of the system, you’ll see more impactful results than if you limit exposure across your business. But if you go all-in on an ERP, even a basic one, you’ll see results like these:  

  1. Time saved: By pulling information together from multiple disconnected systems into one, central source of truth across lines of business, you can better use your time. Additionally, ERP’s eliminate the need for duplicate entry of information across multiple systems and the errors that come with them. You’ll also save time on things like inventory updates, accounting reconciliations, and reporting.  
  1. Sales Improvements: An ERP provides food businesses with electronic traceability required for GFSI certifications, required by many customers. ERP’s also mean improved visibility for your sales team, so they can provide accurate inventory and order information in real time, setting accurate expectations for valued customers.  
  1. Optimized Cash Flow: With an ERP you can trust your inventory in the system and can use Materials Requirements Planning (MRP) reports to make better purchasing decisions, and knowing what raw materials you’ll need, by what date, to meet planned production and customer orders. By tracking purchasing and receiving of raw materials as well as their transformation into interim and finished goods, you can expect to have more accurate finished goods costs available. This kind of visibility empowers you to optimize both your costs and your cash flow while offering scalability that may have previously been unconsidered.  
  1. Increased Customer Satisfaction: When visibility for sales and other staff is enhanced, everybody wins. You’ll also experience a better position to satisfy any fill rate requirements due to better purchasing and production planning with a food specific solution.  
  1. Enhanced Reporting: Reduce time to decision because the reports you need most can be provided when you need them. And, by having the full flow of purchasing, receiving, manufacturing, storing, and shipping of goods, along with customer orders, invoicing, and accounting within one system, you can view profitability reports across items and customers. 
  1. Optimize Staffing: The ability to scale your business because you’ll have systems in place that can allow you to grow, often without adding more admin staff and enabling them to focus on more business-critical tasks. 

If these capabilities would benefit your business, reach out. Our seasoned food industry professionals are available to answer your questions and point you in the direction of the best-fit solution.