1. Improved production efficiency
Efficient production processes are crucial for meeting customer demands and maintaining profitability. ERP systems can significantly improve production efficiency by:
- Automating production scheduling. This ensures optimal use of resources and timely order fulfillment.
- Providing real-time visibility. Managers can monitor production processes in real-time, allowing for quick adjustments and proactive problem-solving.
- Reducing manual tasks. Automation minimizes human errors and frees up staff to focus on value-added activities.
For instance, Frozen Garden, a small food manufacturer specializing in healthy frozen products, experienced a substantial increase in production efficiency after implementing an ERP system. Founder Allyson Straka noted, “When we started, we produced 200 smoothies a day. Now we produce 1,000 with the same number of people.”
2. Improved inventory management and traceability
Managing perishable goods requires precise inventory control and traceability to ensure product quality and safety. ERP systems assist in:
- Real-time inventory tracking. This helps prevent overstocking or stockouts of critical ingredients.
- Batch and lot tracking. Maintaining full traceability is essential for compliance and quality assurance.
- Expiry date management. Ensuring ingredients are used before they expire reduces waste.
Tait Farm Foods, a specialty food manufacturer from Pennsylvania, adopted an ERP system to gain better control over their operations. Sales Manager Karen Addenbrook stated, “We went from modest inventory management to full understanding of our manufacturing process. It has been terrific for our business and made us enormously more efficient with our time and spending.”
3. Compliance with food safety regulations
Adhering to food safety regulations is non-negotiable in the food industry. ERP systems facilitate compliance by:
- Automating record-keeping. This ensures all necessary documentation is accurately maintained and easily accessible.
- Managing traceability. Quickly identifying and isolating batches in case of a recall protects consumers and the brand.
- Ensuring accurate labeling. Compliance with labeling requirements is streamlined through centralized data management.
“MRPeasy has all the functionality manufacturers from industries such as food or pharma need to comply with FDA regulations and get to the next level of efficiency,” says Allyson Straka from Frozen Garden.
4. Cost control and profitability
Managing costs effectively is vital for SMEs to remain competitive. ERP systems contribute to cost control by:
- Providing accurate cost calculations. This helps in understanding true production costs and setting appropriate pricing strategies.
- Optimizing procurement processes. Preventing unnecessary spending by aligning purchases with actual production needs.
- Offering detailed financial reporting. Better decision-making is facilitated through comprehensive financial insights.
“Before MRPeasy, I used to spend hours and hours trying to figure out the performance of our products and their costs,” said Nikki Mattern-Klinger from Tait Farm Foods. “The new system saves me so much time doing this.”
5. Cloud-based systems are affordable and easy to implement
One of the biggest misconceptions about ERP software is that it is too expensive or too complex for small manufacturers. However, cloud-based solutions have made ERP more accessible than ever. Unlike traditional on-premise ERP systems that require large upfront investments in hardware and IT staff, modern cloud-based ERP platforms are designed to be:
- Cost-effective. SMEs can access powerful ERP functionality at a fraction of the cost of traditional systems.
- Quick to implement. Cloud ERP solutions can be up and running in weeks, not months.
- User-friendly. Designed for small and medium-sized teams, they don’t require extensive IT knowledge to operate.
For small manufacturers like Frozen Garden, finding a system that balances affordability and functionality was a challenge—until they discovered MRPeasy.
“I’ve worked in software for 15 years so I‘m very picky about what we use,” Allyson Straka from Frozen Garden says. “And there is not much middle ground for small manufacturers in terms of software cost and functionality. MRPeasy is precisely in this middle ground.”
Conclusion
For food and beverage SMEs, implementing an ERP system is a strategic move that offers numerous benefits, including enhanced production efficiency, improved inventory management, regulatory compliance, cost control, and strengthened supply chain management. As demonstrated by companies like Frozen Garden and Tait Farm Foods, ERP systems can transform operations, leading to significant improvements in efficiency and profitability.
If your food manufacturing business is still relying on manual processes and spreadsheets, it may be time to explore how an ERP system can revolutionize your operations.
Learn more about MRPeasy by visiting https://www.mrpeasy.com/