How ERP Solutions Support Supply Chain Management

While Enterprise Resource Planning (ERP) solutions add immense value to companies in any industry, they are particularly impactful for and distributors. This is because ERP software, when selected and implemented correctly, can support supply chain management for food and beverage businesses. Also known as SCM, supply chain management is debatably one of the most critical determining factors for success in this industry.

We know the demands of the supply chain are ever-evolving, which is why an ERP solution with supply chain management capabilities — that yields increased efficiency and reduced costs — should be top-of-mind for any food and beverage business.

Let’s Revisit: What is the Supply Chain?

To truly understand the benefits of supporting supply chain management, it’s important to remember that the supply chain is a network of activities, information, resources, organizations, and individuals involved in producing, distributing, and delivering goods or services. It encompasses the entire journey of a product or service from its initial design and creation to its consumption by end-users, involving the following parties:

  • Suppliers
  • Manufacturers
  • Distributors
  • Retailers
  • Consumers

Supply chains are necessary in virtually all industries, and are essential for the functioning of the global economy. However, supply chain management for food and beverage businesses is especially crucial.

The Difference Between ERP & SCM

Enterprise Resource Planning (ERP) and Supply Chain Management (SCM) are two distinct but complementary systems that play imperative roles in the efficient functioning of a business. ERP solutions are comprehensive software systems designed to manage and integrate various core functions and processes within an organization, while SCM primarily focuses on the external aspects of a business’s operations.

Solutions that address supply chain management for food and beverage businesses are specifically designed to manage the movement of goods, information, and finances across the supply chain. They focus on demand forecasting, supply chain planning and procurement, production planning, logistics, distribution, and inventory management.

Many businesses use both systems in tandem to achieve a seamless and efficient end-to-end operation, ensuring that internal processes align with external supply chain requirements. Without a modern ERP or SCM solution, companies manage these data points manually using spreadsheets – the inaccuracy of which can yield some pretty major and costly mistakes in an industry that has an extremely low margin for error.

Benefits of Supply Chain Management for Food and Beverage Businesses

Our clients who entrusted Adroit to assist with their supply chain improvement services experienced several areas of positive growth. Here is what you can expect from a successful supply chain management solution implementation:

  • Increased visibility: An ERP solution provides a centralized location for all the essential information about your business, including the supply chain. By having constant, updated access to company data, members from multiple teams can make decisions in an instant based on the same set of data. If you are implementing a cloud-based solution, then this data will be consistent across manufacturing locations as well.
  • More efficient use of resources: One of the keys to mastering supply chain management for food and beverage businesses is an ERP solution that puts automations in place. By automating certain aspects of your business process, like manual data entry and invoicing, you can remove those tasks from your team’s workload and use team resources more wisely to grow the business.
  • Control over inventory and operational costs: By implementing an ERP solution with supply chain management capabilities, food and beverage businesses can gain a better picture of supply and demand and adjust inventory accordingly. Many underestimate the excessive costs that can be associated with utilizing warehouse space, which is why overstocking can be so detrimental. The food and beverage businesses that succeed do so by finding solutions to manage the delicate balance of supply and demand, and product inventory along with it.
  • Customer satisfaction and retention: Food and beverage businesses must be able to consistently fulfill their obligations to customers. An ERP solution with supply chain management capabilities will give companies the ability to streamline production schedules and therefore deliver completely and on time. A record of on-time fulfillment builds customer loyalty and repeat customers.

The Adroit Difference: ERP Implementation and Improved SCM

When working with a group of experts like Adroit North America to implement an ERP solution to improve your SCM, you can expect a thorough assessment of your supply chain requirements, demand profile, products and attributes, sequencing requirements, logistical networks, and more.

To learn more about the successes of a previous food and beverage supply chain management implementation contact us today to start the assessment process.