Supply Chain Challenges for the Food and Beverage Industry

Two quality professionals in white sterile uniforms checking quality of salt sticks while standing in food factory using Panni Management's Sage X3 ERP for food & Beverages industry

Supply chain challenges can cause massive disruption to businesses. The food and beverage industry is prone to continuous supply chain challenges. Thankfully, there are enterprise resource planning (ERP) solutions available to food and beverage companies to help them navigate through the challenges that food supply chains experience. Here are some common supply chain management challenges that can be fixed with the right ERP solutions.

Rising Supply Chain Costs

The food industry and supply chain can be costly. Apart from the cost of fuel and energy (which fluctuates drastically with the political climate), there is the cost of manpower, raw materials, and new technology to take into account. ERP software can help you keep track of your supply chain. Although saving costs is essential, investing in an ERP solution with record management and modern inventory management solutions is well worth the money. It can save you money in the long term as it cuts time and reduces errors that come with manual processes.

Lack of Traceability

There is increasing customer demand for traceability in the food and beverage industry. Consumers want real-time visibility to know they are receiving good food quality. They need to know that companies are complying with food safety standards and that there is no risk of food contamination.

The lack of traceability is often due to companies using outdated systems that are prone to errors and bad reporting. Supply chain management platforms can provide tracking technologies for the supply chain, and other services needed for traceability, such as order management and inventory control. 

Challenges Maintaining Safety and Quality

There is a demand for safe products of the highest quality. Factors such as poor storage, delays in transportation, and even weather conditions affect the quality of food and beverage products. Product quality affects the reputation of brands.

To manufacture high-quality and safe products, there needs to be sufficient tracking of the transportation and storage of products. ERP software can provide supply chain solutions that affect the quality of products by helping to track every stage of the production process.

Insufficient Communication

Poor communication causes problems in all industries, but it is especially problematic for the food and beverage industry as it can lead to mistrust and ruin a company’s brand reputation.  

Thanks to advancements in technology, a lack of communication no longer has to be an issue. Cloud-based networks can help companies communicate across all platforms more effectively. Cloud-based ERP software can also help to track the real-time demand and supply of products to prevent communication breakdowns. 

Difficulty Tracking and Controlling Inventory

Tracking and controlling inventory is one of the biggest supply chain management challenges. Not being able to keep up with market demand for products can lead to a loss of revenue for businesses. The solution? Inventory management solutions can help businesses keep track of their logistics and warehouse activities. As a result, businesses can keep track of their inventory, monitor consumer trends, and meet customer demands.

Is your business facing these major challenges? Sage X3 is the best ERP solution for supply chain issues. It provides vital resources for food and beverage companies. The software uses advanced technology and core functionality to help companies solve supply chain challenges and make important business decisions. By migrating to Sage X3, your business can easily streamline compliance and eliminate inefficiency.

Some of the features that Sage X3 provides for the food and beverage industry include: 

  • Tracking and traceability
  • Batch production
  • Quality management
  • Formula and recipe management
  • Regulatory compliance and reporting 

Want to learn more about Sage X3? Solve your supply chain challenges by contacting Panni Management Enterprise Consulting Services today!

Transforming businesses since 2009

For over a decade, Panni has helped companies transform their businesses to lead, innovate and be profitable. With the right combination of technology and experienced developers and consultants, we help companies with Change Management to achieve the organizational objectives. We believe in long-term relationships with our clients and provide top-notch support with fast turnaround times.

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