How ERP can help reduce your waste

There is more pressure than ever for food and beverage manufacturing businesses to reduce waste. There are multiple benefits to waste reduction, including increasing the sustainability of a business and increasing your manufacturing profits. In this guide, we look at ERP and the role it can play in reducing waste.

What is ERP?
ERP, or enterprise resource planning software, is a solution used to connect all areas of a business into one common database and streamlined channel. ERP software, for example, can ensure all departments within a food and beverage manufacturing company have access to the same real-time information. This helps different departments, such as HR, accounting, order management and warehouse teams operate together as efficiently as possible and improves the functionality of a business.

The complexity of food chains and manufacturing processes has made excess food waste common. As food and beverage manufacturers face higher expectations and tighter time limits, ERP application solutions are essential to reducing waste and ensuring a business operates as efficiently as possible.

In what ways do food and beverage companies create waste?
•  Over-producing
Mistaken calculations and incorrect demand predictions can cause food and beverage companies to over-produce food, and therefore create a high volume of waste food and beverage products.  If done consistently, this can seriously impact the profit margins of a business and decrease their sustainability significantly.

•  Unnecessary Transport
Fuel and time waste are often created when delivery and transport of food and beverage products are mismanaged. For example, two delivery drivers may be sent on a route that could have been completed by one driver alone.

•  Storage
Storing produce and products in an incorrect way, for example in too warm or too cold an environment, can cause produce to lower in quality or become unsafe to sell. Products that have not been stored in line with food processing regulations must be discarded as waste as they may be unsafe to eat and consume.

•  Incorrect Food Disposal Techniques
Food and beverage manufacturing companies that use incorrect food disposal techniques, or seek to cut corners in their waste procedures, often contribute more waste to the environment. For example, some companies may avoid recycling and contribute more waste than necessary to landfill.

How can food manufacturing ERP software reduce waste?
To avoid or reduce the above problems, ERP systems for food manufacturers can be used. Here’s how…

1. Supply Chain Management
Adopting ERP for complex supply chains can help to eliminate waste caused by the overproduction of food and beverages. By streamlining communications between storage and production departments, you eliminate the possibility of your business producing food beyond your current storage capacity. Based on the past data of your company, ERP software can help you accurately predict product demand and sales, helping guide your future production rate and strategies.

2. Inventory Management
To ensure products and produce in your inventory do not exceed their shelf life before they are used and sold, ERP software can be integrated with your inventory management systems to allow manufacturing teams to have more control and order to their expiration management. ERP software can also be used to set inventory automatic re-order triggers that only re-order produce when inventory reaches a certain number or level. This ensures inventory is never over-ordered and bulk inventory is never wasted.

3. Faster Delivery
Managing driver schedules and routes can be complicated, especially if you deliver your food and beverage goods to multiple businesses or distribution centres. ERP software can help you optimise driver routes and schedules by comparing the data of your past orders and creating the most efficient delivery routes possible.

4. Greater Clarity
If a delivery does not arrive as expected, a client may cancel an order entirely creating a significant amount of waste for a business. An ERP system can be used to give customers complete clarity about the status of their order. For example, a client can watch as their order moves from being processed, manufactured and finally delivered. Having a clear understanding of the status of their order is not only beneficial in building strong client relationships, but it also prevents clients from cancelling their order out of confusion or disappointment and causing waste for a company.

5. Time-saving Processes
ERP can improve and automate existing processes within your business, allowing your FMCG supply chain to operate more efficiently and your goods to be delivered at a faster rate. This will help to eliminate waste by ensuring products do not exceed their shelf life before they are used and delivered as your company will operate with a fast turnover rate.

What are the benefits of resource enterprise applications and software?
Aside from helping your food and beverage manufacturing company to reduce waste, using ERP software has multiple other benefits. As mentioned above, ERP software improves the overall efficiency of your business and helps your company to operate at a faster, more productive and functional rate. This can increase the profitability of your company and help you to form lasting, positive relationships with clients.

Why IFS is our ERP of choice
ERP for the food and beverage industry is more challenging than some vendors would have you think.

We know you want choice: in the tools that your business uses and where and how they are deployed.  This is the reason we chose to work with IFS.  Like Mitec, IFS are committed to delivering your business value and a competitive advantage with a deep industry focus.  IFS Applications gives you a 360-degree of your supply chain and manufacturing business, bringing you both broad scope, deep functionality and configurability to ensure that you can meet the needs of the food and beverage market today. Mitec have been a Trusted IFS Partner since 2012 and gained Silver Status with them in 2017.  Our belief in IFS as the best ERP solution lies not only in our in-dept knowledge of the Applications but also in our industry experience.  Our focus on Food & Beverage Manufacturing allows us to use our industry knowledge together with the IFS software solutions to drive qualified value for your business.

Contact Mitec Consulting today
If you’d like to learn more about ERP software, and how it can help your food and beverage manufacturing company to reduce waste, do not hesitate to get in touch with Mitec Consulting today. We are ERP technical consultants who can help you at every stage of your ERP journey. Every business is unique and has unique needs, which is why we get to know businesses on a personal level and only suggest ERP solutions we believe will truly benefit them. From purchasing the right ERP software to introducing it into your business and developing it as and when necessary, we provide a complete spectrum of ERP services. If you have any questions, do not hesitate to get in touch with a member of our expert team today.