{"id":9249,"date":"2018-06-05T12:54:09","date_gmt":"2018-06-05T12:54:09","guid":{"rendered":"https:\/\/sg.syspro.com\/blog\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/"},"modified":"2021-03-04T14:50:01","modified_gmt":"2021-03-04T14:50:01","slug":"erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers","status":"publish","type":"post","link":"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/","title":{"rendered":"ERP is Key to Improving Productivity and Profitability for Food Manufacturers"},"content":{"rendered":"<p>The incidence of <strong>serious food poisoning outbreaks<\/strong> is increasing globally, with more and more significant cases occurring more frequently around the globe. Most recently, South Africa experienced the world\u2019s worst<strong> Listeria<\/strong> outbreak, killing over 70 people. The regulators\u2019 immediate response was to target \u201csuspect\u201d businesses, and this led to the entire food and beverage supply chain having to review their processes.<\/p>\n<p><!--more--><\/p>\n<p>Further government regulations are being enacted requiring more extensive reporting on the manufacturing process, and requiring assurances of better process controls throughout the value chain. This is making the distribution, packaging and <strong>traceability<\/strong> requirements increasingly important requiring better controls by the manufacturer, all adding extra cost.<\/p>\n<p>One of the first lines of defense in this environment is an integrated <strong><a href=\"https:\/\/www.syspro.com\/product\/erp-software\/\">ERP system<\/a><\/strong>, with the necessary monitoring and controls to ensure contamination outbreaks are avoided. While the ERP system cannot control staff behaviour, it can ensure that the necessary controls are in place at the required frequencies, and being monitored. If a system failure does occur, it has the ability to immediately trace the affected product back to source to contain the impact.<\/p>\n<p><strong>\u201cOwn\u201d the Supply Chain<\/strong><\/p>\n<p>Another significant change in the food and beverage industry is that previously the manufacturer set price and passed all of his inefficiencies on down the line to the retailer who, in turn added his profit and inefficiencies onto the price and pushed it onto the consumer. Now, the educated consumer is looking closely at \u201cvalue for money\u201d, and setting a \u201cceiling\u201d price for the foodstuff, consequently restricting the level of inefficiency they will accept from the retailer and manufacturer.\u00a0 In this new environment, the retailer and food manufacturers have to reduce costs by reducing inefficiencies to protect their profits. This requires an ERP system to visualize the costs along the whole value chain.\u00a0 Companies that can do this successfully will gain a competitive advantage and begin to \u201cown\u201d their supply chain, while those that cannot face the risk of not surviving.<\/p>\n<p><strong>Cost Controls throughout the Value Chain<\/strong><\/p>\n<p>These decreasing profits are compelling <strong><a href=\"https:\/\/www.syspro.com\/industries\/manufacturing\/food-manufacturing-software\/\">food manufacturers<\/a> <\/strong>to examine their whole value chain, and not just their own manufacturing processes. The result is a new type of collaboration that brings very careful cost control up and down the whole value chain. The ability to understand and \u201cattack\u201d every cost associated with the manufacture of the product is becoming the distinction between profitable and mediocre organizations. The advent of the \u201cglobal village\u201d allows a producer to source locally or import cheaper raw materials more easily, exposing those businesses without proper cost to failure.<\/p>\n<p>Unfortunately, these financial pressures also introduce the possibility of under-performing organizations cutting corners to inflate profits, and the likelihood of food contamination. To help food manufacturers under these challenging conditions, it\u2019s important for your <strong><a href=\"https:\/\/www.syspro.com\/product\/erp-system\/\">ERP system<\/a><\/strong> to offer the required understanding of the manufacturing operations and supply chains. This assists with tighter cost controls across the whole value chain \u2013 from farm to fork \u2013 with valuable insights into each product at the click of a button.<\/p>\n<p><strong>Automating your Business is a Necessity<\/strong><\/p>\n<p>With full integration of <strong><a href=\"https:\/\/www.syspro.com\/brochure\/bill-of-materials\/\">Bill of Materials<\/a><\/strong>, Estimation, Process Modelling, Work in Progress, Barcode Scanning and Workflow Services, all of these activities are automated. This is what it takes for food manufacturers to improve profitability while accurately measuring performance and driving toward world-class standards of operation.<\/p>\n<p>In the challenging world of modern food and beverage manufacturing and distribution, optimization, integration, and efficiency is key. Automating your business is no longer a \u2018nice to have\u2019 but critical for remaining competitive, compliant, and contamination free.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>The incidence of serious food poisoning outbreaks is increasing globally, with more and more significant cases occurring more frequently around the globe. Most recently, South Africa experienced the world\u2019s worst Listeria outbreak, killing over 70 people. The regulators\u2019 immediate response was to target \u201csuspect\u201d businesses, and this led to the entire food and beverage supply &#8230; <a title=\"ERP is Key to Improving Productivity and Profitability for Food Manufacturers\" class=\"read-more\" href=\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/\" aria-label=\"Read more about ERP is Key to Improving Productivity and Profitability for Food Manufacturers\">Read more<\/a><\/p>\n","protected":false},"author":168,"featured_media":7218,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-9249","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-erp-for-manufacturing"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Food Poisoning Outbreaks | Food &amp; Bev ERP for Advanced Traceability<\/title>\n<meta name=\"description\" content=\"Food poisoning outbreaks can damage your business in the world of food &amp; beverage manufacturing &amp; distribution. Efficiency is key to improving the control.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Food Poisoning Outbreaks | Food &amp; Bev ERP for Advanced Traceability\" \/>\n<meta property=\"og:description\" content=\"Food poisoning outbreaks can damage your business in the world of food &amp; beverage manufacturing &amp; distribution. Efficiency is key to improving the control.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/\" \/>\n<meta property=\"og:site_name\" content=\"SYSPRO Blog\" \/>\n<meta property=\"article:published_time\" content=\"2018-06-05T12:54:09+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2021-03-04T14:50:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/sg.syspro.com\/blog\/wp-content\/uploads\/2020\/12\/roger_sol_for_food.png\" \/>\n\t<meta property=\"og:image:width\" content=\"900\" \/>\n\t<meta property=\"og:image:height\" content=\"410\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Roger Landman\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Roger Landman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/\"},\"author\":{\"name\":\"Roger Landman\",\"@id\":\"https:\/\/sg.syspro.com\/blog\/#\/schema\/person\/70b291447727838bdba027f922a44dfc\"},\"headline\":\"ERP is Key to Improving Productivity and Profitability for Food Manufacturers\",\"datePublished\":\"2018-06-05T12:54:09+00:00\",\"dateModified\":\"2021-03-04T14:50:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/\"},\"wordCount\":601,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/sg.syspro.com\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/sg.syspro.com\/blog\/wp-content\/uploads\/2020\/12\/roger_sol_for_food.png\",\"articleSection\":[\"ERP for Manufacturing\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/\",\"url\":\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/\",\"name\":\"Food Poisoning Outbreaks | Food & Bev ERP for Advanced Traceability\",\"isPartOf\":{\"@id\":\"https:\/\/sg.syspro.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/sg.syspro.com\/blog\/erp-for-manufacturing\/erp-is-key-to-improving-productivity-and-profitability-for-food-manufacturers\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/sg.syspro.com\/blog\/wp-content\/uploads\/2020\/12\/roger_sol_for_food.png\",\"datePublished\":\"2018-06-05T12:54:09+00:00\",\"dateModified\":\"2021-03-04T14:50:01+00:00\",\"description\":\"Food poisoning outbreaks can damage your business in the world of food & beverage manufacturing & distribution. 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