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Tame your food and beverage costs and boost your profits with ERP software.
The high growth percentage of the F&B industry was put to a halt by the recent coronavirus pandemic. Hundreds of thousands of restaurants and hotels were shut down for an unprecedented period and made significant losses. Even today, when the number of infections has been largely controlled, the food and beverage industry shows slow growth. Let’s understand the challenges that this industry is going to face in the coming times:
Numerous organizations, NGOs, scientists, and environmentalists have voiced against the use of plastic for decades. As a result, the Indian government banned the storage, transport, supply, and sale of plastic cups, carry bags, and plates. Those that are found breaking the rules are fined enormously. But this move harmed the F&B industry as most food and beverage products are packed in inexpensive plastic bags. Moreover, customers are becoming environmentally aware and choosing products with an “eco-friendly” tag on them. Therefore, food manufacturing companies need to adopt green business practices across each sector, from sourcing raw materials to producing, packaging and distributing finished goods and managing waste.
Public trust in food supply chains is at an all-time low, making traceability a challenge for F&B companies. People are becoming more aware of what goes into the food they consume, which has led to the emergence of “ingredient labeling” that requires F&B companies to provide a detailed account of the constituents of products. Also, food and beverage manufacturing companies need an efficient mechanism to monitor the entire supply chain, from the purchase of raw materials to the distribution of finished products. It helps to maintain records and analyze each unit’s revenue independently.
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Consumers across the world have begun realizing the negative impacts of packaged food on the human body. As a result, awareness about health-related issues is rising rapidly, which is shifting consumer focus towards organic food with tags like “sugar-free”, “gluten-free”, and “dairy-free”. Also, people are moving away from products that have preservatives and artificial sweeteners. Therefore, food and beverage manufacturers need to focus on producing health-affirmative products without compromising on taste.Â
There is a growing awareness of veganism across the globe. Social media platforms and NGOs play a crucial role in making people aware of the disastrous impacts of animal slaughter and its damaging effect on the planet. As a result, many consumers are looking for products with tags like “cage-free” and “humane-certified”. Therefore, food manufacturing companies need to develop meat-free alternatives if they want to survive in the market.
Food and beverage ERP software provide a perfect solution for F&B companies to monitor the entire supply chain, streamline procurement, manage inventory, plan and schedule production, and collect critical customer data to develop products that people are highly likely to purchase. Here are few benefits of using ERP software:
Food and beverage ERP software allow companies to monitor the changing market trends and customer preferences. As a result, it helps to design products that customers are highly likely to buy.
Compliance with food regulations and norms is a must. Companies that don't follow the rules need to pay hefty penalties. The food and beverage ERP software allows organizations to stay compliant with the government's rules and regulations.
ERP for the food and beverage industry allows companies to deliver high-quality and safe food products to customers at the right time and competitive prices.
Food ERP software allows organizations to achieve end-to-end bi-directional traceability, from the procurement of raw materials to the distribution of the finished product.
Get a complete picture of your business by getting real-time inputs about sales, production, and supply chain management.
ERP system for the food and beverage industry allows forecasting sales orders by analyzing the market conditions.
An enterprise resource planning software for the F&B industry needs to tackle challenges such as managing numerous recipes, filling customer orders, planning production activities, controlling inventory, and government regulations. Sage X3 ERP system for the F&B industry has advanced functionalities that allow organizations to remain competitive in challenging times.
Streamlining compliance-related issues
Sage X3 ERP system allows companies to eliminate inefficiency and provides a significant advantage over conventional ERP systems. It has powerful tools that help you adhere to government regulations and maintain your commitment to providing excellent customer service. In addition, the Sage X3 ERP system conveniently handles order recalls allergen-free production, sustainability, labeling, and other challenges without increasing the overhead costs.
Achieve process and product consistency through the recipe and formula management module
Forecast multiple outputs of production jobs by comparing planned outputs to planned inputs and keeping these values into a formula or recipe. Sage X3 ERP system is a leading market software that supports single and multi-level Bill of Material (BOM) to manage routings and recipes during production. Moreover, it maintains raw material potency and also manages by-products. Further, it has numerous units of measures that provide significant conversion capabilities.
High-level quality control
Analyze test results for intermediates, raw materials, and finished products. The best thing about Sage X3 food ERP software is that it records all details in the repository, accessible to relevant stakeholders from anywhere and anytime.
Forecast demand and supply
The food and beverages industry has to deal with multiple challenges such as crop failure, natural calamities, new food trends, and many more. An enterprise resource planning software allows F&B organizations to remove unpredictability by helping predict seasonal changes. This feature helps to maintain a healthy relationship between the supply and demand levels. As a result, companies can significantly reduce overstocking and understocking and get historical data to decide future demands.
The food and beverage industry in India accounts for about 3% of the GDP. It employs a workforce of about 7.3 million people. The coronavirus pandemic has dismantled this industry as numerous restaurants and hotels were shut down during the nationwide lockdown. The National Restaurant Association of India (NRAI) recently reported that the restaurant industry would see a drop of USD 9 billion in 2020. As a result, the hospitality industry is adapting and innovating to regain its lost luster. Restaurants are deploying covid hygiene protocols to increase revenues and gain customer confidence.
The food and beverage industry is gearing up for contactless solutions by developing self-service stations focusing on ensuring customers’ health & safety. Examples include digital menus, delivery robots, and in-app ordering. In addition, the industry is significantly investing in technologies such as contactless biometric and facial recognition to enable guests to access elevators and check-in and check-out of rooms.
Although restaurants are taking care of social distancing measures, they are experiencing a drop in customers. And this trend will continue for an extended period. Thus, big players in the food and beverage industry are adopting the “At home” trend where professional cooks will visit the customer’s house and serve delicious meals.
An ERP software for the F&B industry allows companies to quickly increase their ROI, streamline operations, and boosts profits. Here are the top five benefits that F&B companies can get by deploying ERP software.
An ERP system substantially increases business visibility that provides valuable insights and helps forecast the changing market trends and customer preferences. As a result, managers can identify operational logjams and improve productivity across each aspect of the supply chain, from purchasing and warehousing to distribution.Â
An ERP system links core business areas such as production, sales, marketing, supply chain, inventory management, business intelligence, finance, accounting, customer service, and human resources. With a single source of truth, companies get access to critical documents, reports, and data that help make crucial business decisions confidently.
India’s food and beverage industry is undergoing a drastic change, primarily due to the coronavirus pandemic. Consumers have become more aware of what to consume, and the government is monitoring the industry by formulating stringent laws. The Food Safety and Standards Authority of India (FSSAI) guidelines are becoming more strict, and companies can get in deep trouble if they fail to adhere to rules. ERP software allows companies to adopt active safety measures and stay compliant.
The most significant benefit of ERP software is that employees working in different departments can view, share, download, edit, and use information from across the enterprise. The best part is that they can access data in real-time that helps improve clarity and collaboration.