It’s difficult getting the right price for your products. Food recalls cost billions of dollars each year and can damage customer loyalty and long-term brand value. Furthermore, companies must ensure that their products meet government regulations to avoid fines or lawsuits. Both components play a vital role in keeping customers safe and allowing brands to remain profitable.
Although these necessities may seem straightforward, there are hidden variables involved in pricing decisions, such as product yield losses due to spoilage or waste disposal costs from excess scrap material caused by errors in manufacturing processes—and these variables can add up quickly. Moreover, companies need a way to accurately track all these different variables in order to make informed business decisions about pricing and safety.
What does this mean for food manufacturers? It means that software is playing an increasingly important role in the food and beverage industry by reducing costs and increasing efficiencies through greater insights and analysis.
Traditional approaches to manufacturing rely heavily on manual, paper-based processes that lead to overspending and overproduction of products that cannot be sold or disposed of easily due to expiration or spoilage. These manual systems often fail to account for all variables, such as yield loss. Food manufacturers need a more high-tech approach that can streamline operations while keeping customers at the forefront of their process. Fortunately, modern technology has opened up a wealth of possibilities to meet these challenges with intelligent software solutions. This article will explore how food manufacturers use software to maximize efficiency, profitability, and food safety.
What is Food Manufacturing Software?
This ERP system is designed specifically for food and beverage manufacturers to help each company address its unique needs while providing streamlined processes, sustainable growth, and increased profitability. From on-premise installation options to cloud-based solutions, food manufacturing software helps companies automate key business functions by providing real-time data across all departments for maximum impact.
How Has Food Manufacturing Software Helped Food and Beverage Businesses
The software enables food manufacturers to manage their supply chain more efficiently by reducing costs across the board. For example, it is estimated that middlemen account for 15% of all food expenditures in a given year, which can be reduced through greater management of inventory and distribution processes. Inventory managers can better ensure product quality with access to real-time information about their supply chain while keeping track of expiration dates and shelf life. Data integration allows companies to use the most up-to-date sales numbers from distributors or retailers when determining to price for future manufacturing orders. In addition, manufacturers are able to reduce overproduction with visibility into actual demand versus potential demand based on previous years’ sales data.
These benefits can be extended to food safety with software that helps manufacturers avoid food-borne illnesses by pinpointing the exact source of contamination during a recall. This allows companies to identify affected products quickly, remove them from shelves immediately, and contain the problem before it becomes widespread.
Modern solutions are also more intuitive than their paper counterparts. For example, automated systems can use data directly from production line sensors to send notifications when equipment malfunctions or when production has stopped due to an issue. Food safety managers can keep track of corrective actions and preventative measures without having to wait for paperwork to be completed in between inspections—and this information is available anywhere with internet access, so managers don’t need to commute in order to oversee these tasks in real-time.
Lastly, the software enables manufacturers to reduce costs through improved communication. For instance, food safety managers can collaborate with facilities staff and other departments or business units via an intranet or the cloud so that everyone is on the same page regarding workflows and protocols. Such communication minimizes mistakes due to lack of information sharing across teams while enhancing efficiency through better collaboration.
All of these benefits help food manufacturers achieve true visibility over their supply chain processes—and this enhanced communication empowers them to make informed decisions about budgeting, inventory levels, pricing, etc. With access to all relevant data in one central system, companies can save time and conserve resources by reducing waste. Best of all, robust software solutions can be customized according to each company’s needs and tailored to their specific processes, which means that manufacturers can fine-tune the software in order to meet all of their business objectives.