Skip to content

ERP for Dairy Industry: A Comprehensive Guide

Table of Contents
ERP for Dairy Industry
Reading Time: 5 minutes

What is meant by Dairy ERP software?

ERP for dairy industry means a centralized business management software that plans and manages the overall operations of a dairy business.

It overlooks the whole dairy product manufacturing process like milk procurement, chilling, pasteurization, homogenization, along with cattle feed, veterinary services, chilling centre management, quality control, costing, route management, compliance regulations, Sales & Distribution etc.

ERP software for dairy Industry is a powerful tool for businesses in the said domain. From keeping record of the hundreds and thousands of transactions to identifying better SCM (supply chain management) practice, an enterprise resource planning or ERP software can prove to be a boon for businesses operating in the ice-cream and dairy industry.

 Overview of Dairy Industry:

The dairy industry is well-known and used by almost every household in the country. The dairy industry of India is the largest industry in the world, accounting for 23% of global milk production. It also supports more than 8 crore farmers in the nation.

Dairy being such a famed industry has to pass many challenges to run successfully. In the business of perishable items like food, grocery, milk, dairy, etc. particular care is needed in handling the finished goods, as they are ready for consumption and any fault can cause a harm to the image of the company.

While looking at the manufacturing, quality and compliances of the dairy products, a major complex function is to store and manage the data of all raw milk procurement centers like cooperative societies which are attached to dairy union of some region and manage details such as Address, Route, Collection time and society information like date of registration, Membership, directors, Bank Accounts etc. Below are some of the hurdles faced regularly by the industry:

  • Low margin pressures
  • Procurement and Distribution
  • Regular changing demands
  • Sensitive shelf life of dairy products
  • Meeting the standards of regulatory compliance
  • Requirements of FSMA
  • Quality issues
  • Costs of infrastructure to ensure product freshness.

Under all these circumstances dairy companies makes little to no profit in a production consumption cycle. With growing competition, companies in Dairy and Ice Cream industry need to evolve and adapt technologies. However, apart from the infrastructure, the company needs to adopt smart business processes that boost operational efficiency.

Business management software like ERP can be extremely useful for the execution of the dairy businesses. It helps in managing the resources and deducts the possibility of risk that may arise in production or trading.

CTA - Maximize your business potential with sage 300

How Dairy ERP Solutions is necessary?

Due to fragile nature of Dairy products huge expenses are associated with them, to keep products fresh. Hence, it becomes essential for the dairy manufacturers to implement smart solutions like SAGE Software Solutions to plan, manage and operate the business efficiently.

Dairy ERP software helps to assess the composition of milk, look after its expiration dates and manage cost efficiently.

It also maintains the temperature of the containers to prevent products from getting ruined. It keeps track of wastages due to spoilt milk, expired products and returned goods as these issues also takes away the minimum profit margins.

Let’s get through the insane benefits provided by the ERP software for dairy industry:

  • Quality products
  • Reduced costs and wastage
  • Increased profits
  • On time deliveries
  • Improved packaging
  • Easily achieving regulations
  • Real time tracking of all products.
  • Reduced manual & paper work.
  • Labour productivity
  • Accurate payments
  • Improved performance management
  • Achieving customer satisfaction
  • Increased collaboration between departments.
  • Shelf Life Management
  • Automated scheduling of sanitization and safety checks.

You May Also Like:- ERP for Food Industry

Features provided by ERP for Dairy Industry:

Dairy ERP streamlines dairy manufacturer’s procurement software, production planning, provides quality assurance, facilitates batch processing and provides complete visibility. Let’s dive into its features and know more about it:

Asset Management:

As other industries, managing asset and infrastructure are crucial for dairy industry as the products are easily perishable and needs to be preserved in certain temperature to avoid spoilage. The machines, storage compartments and delivery vans should function optimally and should avoid any sudden breakdown. SAGE X3 ERP provides specialized asset management software to prevent any downtime and helps you take care of your assets and increase their lifespan.

Budgeting of Finance & Accounts:

Purchase details, accounts receivable and payable can be managed from one platform. This helps the accounts team to work faster.

Easy calculations of milk bills can be made according to rates, route, arrival time, quality and milk of cow, buffalo or mix grade. Payments ae automated and adjusted according purchases like cattle feed, seeds, veterinary visits, compulsory deposits etc.

It leads to speeded account settlement and increased efficiency.

Inventory Management:

Dairy ERP software assists in proper stock maintenance with batching and lot traceability. Sage X3 & Sage 300 have fully integrated warehouse management system, that looks after raw material, finished products, batch processing, updates about expiration date, temperature management of chilling centers, and monitors inventory levels.

With its barcode integration function in inventory, manual feeding of data can be avoided, and the data becomes available in the system immediately.


For every food and pharma business, it is imperative to stay compliant with certain regulations. Products should meet FDA compliance and regulatory requirements.

Sage 300 & X3 helps you to be complaint by integrating all those processes of inspection, supervision and reporting. With digital signatures, it becomes easy to access and approve reports.

It also defines quality parameters for milk like Fat, strength, SNF, source of cow or buffalo, etc.


ERP software support Business Intelligence software and analytical reporting features. Business can get actionable data within a few clicks only. With real time business data, management is able to make quick and effective business decisions while saving time.


Dairy ERP software secures your data with the option to grant access to employees for particular data so that it cannot be accessed by anyone other than the assigned personnel. This helps in smooth transition of data, since everything is available in the system itself along with documents, proposals and communications sent.

Real Time Traceability and Supply Chain Management:

Dairy ERP solution allows business to track raw materials and finished products throughout all stages of raw milk procurement, production and distribution. It also assists in forward and backward traceability system in supply chain management software.

Recipe and Quantity Management:

The success of food industry and beverage segment is based on its recipe and quality. Dairy integrates various processes of chilling, pasteurization, homogenization etc. The companies should continually innovate to overcome unique challenges, meet demand and increase sales.

You May Also Like:- Best Supply Chain Management Software For All Your Supply Chain Needs


Dairy is a sensitive industry which needs to meet proper quality and regulatory compliances, deal with the fluctuating prices, dealing with the shelf life of the products, managing the vendors, looking after procurement, production planning, supply chain, meeting demand and production expectations and many more.

To efficiently deal with all the measures and achieve productivity and profits, it definitely needs a dairy software like ERP, which will lead them in every aspect of the business operations.

Sage 300 and Sage X3 is a robust solution that can manage every department of your dairy goods, all under a single unified platform. It helps to keep records of your daily collections, distribution, etc. Sage Software Solutions also provides customized modules according to the requirement of every business.

Now manage your dairy business at fingertip with SAGE Software Solutions.

To know more about Sage 300 and Sage X3, connect with us now!

CTA - Take your business to the next level with sage X3

Found this article interesting? Share it on