5 challenges for current ERP system in food industry

Find out key obstacles while transitioning to new ERP system in food industry and find out how to successfully manage them. We even prepared checklist for the assessment of your ERP system.

Inspiration

How to effectively manage on-going difficult production processes? Are you sure, that you can look up every batch of materials and goods? Is your current system flexible enough to withstand growing demand of market in food industry? Possible change of ERP system doesn't have to be a nightmare. With suitable information system and reliable partner you can be sure, that you can make it.

This article is focused on main challenges, which are facing current food industry companies. Article also contains checklist for condition assessment of your current informational system.

Current ERP systems in companies are often satisfactory enough, but are not supported and dont keep up with dynamics of food industry with modern requirements for effective management. The reasons may be:

The system is old and manufacturer is ending its support
For company is big risk to operate business processes on unsupported system, which can from day to day stop functioning.

Introduction of innovations and new processes is slow and impossible
Systems are not always able in current settings, version support changes process or incorporation of new functionalities. Company can't afterwords use modern functions and tools.

High costs of changes
Due to historical development of systems, it is very expensive and risky to make changes in configuration or functionability. Often can one change summon avalanche of changes in the whole system.

Most companies use information systems, which in reality may be enough for their needs, but is nowadays already morally old and isolated. Responsible directors feel the need to make a change, which solves this problem, but are worried about possible losses of support of key processes or keeping the continuity of operations.

Change in ERP system of company demands proper planning, allocation of capacity, revision of processes and cooperation with partner, who understands specifics of food industry.

Management of batches and expirations
Basic need of food companies is to detaily watch batches of specific amounts from input to output. In case of finding out defective batch you have to be able to look up all connected deliveries to customers and input from suppliers.

Warehouse processes optimalization
Today's standard Warehouse Management System (WMS) already demands check-in of all warehouse operations over mobile terminal with accurate traceability of reliable workers. Part of optimalization has to be possibility of working with large warehouse units like palette or selling by pieces, and also in combination of both. Large food retails afterwards demand to create specific package and tend to them by SSCC codes. Independent chapter is then management of full warehouse.

Connection of production and quality
Big challenge is how to connect the need to give out from warehouse by the principal of FEFO and also minimalise opening new packagings, which return from production. It is necessary to ensure specifics of production while working with alergens, mixing batches or storing material in silos. In food industry is key a quality and system has to secure blocking products, if they don't succeed the test of quality.

Supplying domestic and foreign market
Supplying on different markets has its own specifics in principal of working with batches, visuals of labels and input documents. System has to be able to conduct labeling of products for specific markets. System must be able to label products for individual markets.

Information system in food industry must unconditionally manage key processes and also maximalize automatization.

The basis for connection of all processes within one system and access to accurate data anytime, anywhere. Modern software for production management, for example Dynamics 365 Supply Chain management, ables food companies all these areas on managing effectively and with trust. Add processes or fill agendas with help of Power Apps and Power Automate, so you can get the highest effectivity.

In digital era is every company surrounded by nearby systems, with which it is forced to communicate. If your system can manage communicating automatically and integrate surrounding information, it provides not only saving of time, but also competition advantage.

Communication with large retail companies
Big players on market like Tesco or Makro send out daily hundreds of orders and cancellationes, which demands electronic communication upon admission and sending data. Effective communication should lead to orders being processed by system automatically, from receveing them to generating invoices.

Connection to logistics partners
Outsourcing of logistics and transport to external partner can be in food industry common occurence. For ensuring automatization, there is necessary electronic communication with partner without the need of manual input from the operator's side.

Digitalization and ESG reporting
Connection to current structure of condition as control report, VAT etc. is already a standard. Nevertheless, especially EU emphasizes step by step additional provision of data.

The ability of system to integrate to surrounded systems is in these digital times a necessity. Moreover integration for specific tools like Power Apps or Power Automate can make process easier and bring them closer to casual workers, who don't have access to information system.

Cybersecurity threats and protection of data are one of the main topics of modern businesses. Robust security of data against theft and encryption must be part of every IT strategy. Proper data security, not only in ERP system, does not end with company servers.

How to protect sensitive information, when employees work remotely or have access to data from anywhere?

Expansion of cloud solutions is answer on these demands. They offer not only high level of security, but also flexibility, which ables access to data in real time, from office, warehouse, production department, or remotely.

If company adresses the issues in the previous paragraphs, they indeed need to face even the biggest challenge - what are the possible solutions. Develop unsupported or old system isn't effective solution, if company needs to prepare for future. Once the company choses to really adress their situation, it is optimal to cover all requirements at once and choose ecosystem, which is robust enough and is also open to previous changes.

With good planning and reliable partner, it is an opportunity, how to move company forward to completely new level of effectivity and competitiveness.

Why should you do it with us?

We have recently encountered the challenges, you find in this article, with all companies, which turned to us. Thanks to our more than 20 years of experience and proffesionality in food industry, we were able to manage processes and changes of information systems from beggining to the end - from analysis of processes to starting for real. Our specialization is to align company processes with ecosystem Microsoft Dynamics 365, but also ensure, that its implementation will be a benefit for your company.