The food and beverage industry is continuously challenged by supply chain disruptions, changing consumer preferences, complex regulatory requirements, and other issues. This while maintaining production and developing new products. Legacy systems with limited functionality and integration challenges cannot keep up with the demands. New types of ERP solutions, specifically designed for an evolving food and beverage (F&B) industry, are required.
Let’s discuss the advantages of an industry-specific enterprise resource planning (ERP) system and learn more about the main types of Sage X3 ERP software available to the F&B industry. We also delve into the pros and cons of on-premise and cloud ERP systems.
Advantages of a Food and Beverage-Specific ERP vs. Generic ERP
Generic ERP systems include a wide range of features and functionalities that companies across various industries can use, such as finance, accounting, and customer relationship management (CRM). Businesses must purchase add-ons and customizations at an additional cost to adapt the software to their internal processes.
Food and beverage ERP software, as offered by Panni, include the same features as generic systems while focusing on the industry’s unique operational requirements. Recipe management, regulatory compliance, quality control, and lot tracking are built-in capabilities of the Sage X3 F&B ERP. Vital information is immediately available to guide important business decisions, eliminate inefficiency, and streamline compliance. It provides a significant advantage over legacy systems and other less powerful ERPs.
What Are the Different Types of ERP Systems?
ERP systems connect multiple business units through data sharing. It streamlines core business processes, eliminates data duplication, and gives a comprehensive overview of the production process in manufacturing. Tailored Sage X3 food and beverage solutions are available for bakeries, confectioneries, dairy, frozen and prepared packaged foods, and contract manufacturing.
- Bakeries
Streamline batch management and comply with food safety standards to stay on top of your bakery’s operations. - Confectionary
Trace raw materials and efficiently manage allergens in production with a Sage X3 sugar confectionery ERP. - Dairy
Manage end-to-end tracking and effectively account for input-based production to completely manage your dairy operations. - Frozen and Prepared Packaged Foods
Control production costs and meet your bottom line with Sage X3 frozen prepared packaged food ERP software. - Contract Manufacturing
Facilitate quick production line changes and maintain strict quality control with seamless end-to-end product tracking.
Pros and Cons of an On-Premise ERP System for the F&B Industry
Sage X3 can be deployed on-premises or in the cloud. Pros of an on-premise ERP include the F&B manufacturer’s ability to implement customizations based on operational requirements at a convenient time. Manufacturing companies choosing this option feel there is less security risk to intellectual property, such as recipes and formulas.
On-premise ERP systems are less scalable. Manufacturers must purchase additional hardware to increase storage capacity when adding a new production line. The initial investment can be expensive and monthly costs include the IT team managing and maintaining the system locally. Setting up mobile access for an on-premise system is challenging.
Advantages and Disadvantages of a Cloud ERP System for the F&B Industry
Increased scalability, collaboration, and flexible access are just some advantages of hosting your F&B ERP in the cloud. Fluctuating production demands are easily accommodated by adjusting cloud-based resources up or down without compromising performance. Workflows and transactions are managed across multiple manufacturing sites with allergen-tracking data available in real-time. Employees access features and functionalities on a mobile device, whether on the factory floor or visiting a client.
Security risks such as data breaches, unauthorized access, and cyberattacks are often wrongly perceived as disadvantages of a cloud ERP system for the food and beverage industry. It is mitigated by implementing robust risk management tools and strategies.
Panni provides Sage X3 ERP solutions for clients in various industries, including distribution, manufacturing, and food and beverage. Is your current ERP insufficient for your F&B-focused needs? We have several types of ERP software designed for the food and beverage industry. Reach out to one of our Sage X3 experts today.
