What is an ERP system?

An ERP system is a platform that helps a company to cut down on redundancy and increase its efficiency. ERP systems utilize real-time reporting and different levels of automation to cut down on wasted labor and materials and streamline day-to-day operations.

Why would a food manufacturer want an ERP system? 

• Lot tracing for recalls
• Bin/location management to reduce potential cross-contamination in operations where potential allergens are used (nuts, etc.)
• Reduced spoilage

What types of ways can ERP be used in Food manufacturing?

1. Managing supply chain or incoming food – forecast how much inventory is necessary for perishable goods so you only have what you need on hand to minimize spoilage
2. Managing batches and rotations of materials – keep track of expiration dates of food to ensure the right inventory is used first and minimize waste
3. Meeting health codes and rules rated to tracking temperatures of ingredients – using bin/location management to keep allergy-sensitive foods from cross-contaminating, using barcodes and lot management for traceability in the event of a recall
4. Sales or forecasting – keeping track of which foods are popular in a given season to forecast how much inventory is needed for example going into a holiday season, knowing which customers demand which products in a given time of year to anticipate demand

Who needs ERP in food manufacturing?

• Companies using machinery to manufacture food can use ERP systems to track when a machine will need maintenance and how that downtime will affect the output
• Companies that are hitting a bottleneck with their current system based on scaling and not having a system that can keep up with their growth
• Companies that want a more precise way to set costs of their goods and need to more clearly see the cost of their production