When you think about the food and beverage industry, the first thing that comes to mind is perishables. It makes the supply chain and ERP all the more critical and time-bound to this industry. On average, the annual organic waste from the sector is about USD 32.64 billion globally in 2018. The number continues to grow at a CAGR of 5% per year.
These numbers make it all the more essential to reduce food wastage. By implanting an efficient supply chain and logistics process, the industry can save logistics costs and reduce the expense associated with disposing of spoiled food items. ComActivity, among other companies, provides end-to-end ERP solutions for your F&B business to make it more robust.
With the onset of globalisation, the complexities in the F&B supply chain have risen significantly. With consumers being specific about where the various foods are sourced from and the ethical practices used in farm and cultivation, SCM becomes even more critical. An automated ERP system that creates a transparent environment helps make visible the source of various products.
Food safety is the top item on the minds of all those who are part of the F&B industry. A single batch of contaminated or unsafe food can cost millions in product recall and tarnished brand image.
With Australia exporting about 16% of the global meat, it becomes imperative that these companies have a strong ERP in place that enables tracking the product right from when the cattle are bred to the time it reaches its destination country.
Regardless of which part of the F&B sector you belong to, you are bound to have vendors that supply to you. With a structured ERP in place, you can manage all your vendors in one place. This includes raising RFP’s, comparing prices, placing orders, and making payments. Service providers like ComActivity offer end-to-end ERP solutions designed specifically for the F&B industry.
Central Marketing and Distribution Control
With a fully functional ERP suite, you will be on top of your inventory and supply chain. By automating tasks such as order processing, receiving payments, dispatching, and delivery, you can be sure that items are well within their lifecycle when they reach the customer.
Helps Forecast Demand
When dealing with fragile items, it is best to maintain the least possible inventory and use just-in-time inventory management to reorder. A methodical ERP system will allow you to forecast demands based on seasonality, upcoming events, and potential shortages. This will enable you to prepare to meet the onslaught of demand during peak times with supply disruptions.
Cut Costs and Increase Profitability
The biggest cost in the F&B sector is waste management. By being able to predict demand patterns, you can save on this cost. This helps improve your bottom line and build a reputable brand image. When customers know that you only provide quality food products, they will recommend your brand to others.
Australia is known for its beef exports, but there are many other food items such as wheat, vegetables, fruits and nuts, and barley, to name a few. With so much food moving around and outside the country, managing inventories and logistics can be a mammoth task. Thanks to companies like ComActivity, you can now have access to an agile ERP solution designed to meet the intrinsic demands of the F&B industry.