The Importance of Choosing a Food and Beverage ERP Provider

There are many providers of enterprise resource planning systems and food and beverage process manufacturers should be cautious when deciding the best one for their operations. Chances are, investing in an ERP system is a decision that will continue to benefit them, or cause them headaches for years to come. Choosing a system must include many considerations not only for the present, but also the future. If it is not a system developed specifically for the food and beverage process manufacturing industry, chances are pretty good that it will not have the various features you need. Also, changes in compliance, competition, and company growth can severely change your ERP needs. This can make finding the right ERP more challenging, but there are ways that you can be reassured that the ERP you choose will suit your unique needs.

Food and Beverage Specific

The number one focus you should have before even beginning to look for an ERP system is ensuring that the ERP provider you choose has a system designed specifically for the food and beverage industry. When it comes to ERP’s the lowest bidder with the biggest promises may end up a complete disaster. You vendor should specialize in providing industry specific solutions and have the ability to show you they are experienced in them. Ask them for references to other similar companies they have served and do your research. Reputable ERP providers will be more than happy to answer your questions and discuss their experience and your specific needs.

There are a number of reasons why this focus is important. First, through their experience in the food and beverage manufacturing industry, they will have come across and found solutions for many common issues that you may face. They also will have a better grasp on the needs of similar businesses and will have individuals on staff that will be more likely to have a background in the field. It eliminates the time consuming process of training your provider in food and beverage manufacturing so they are able to implement a system. Finally, an industry specific provider will have the functionality needed in your key business areas.

Key Focus Areas

Even if you do seek out only providers who focus on the food and beverage industry, it is important to make sure that their systems can answer to several key issues that face you. By obtaining right ERP capabilities, you will be proficient in meeting industry demands all while increasing your profits, satisfying your customers, and improving productivity. It is important that you will have the essential technologies to detect and immediately overcome challenges that come at any time throughout your operational processes. While this is not a complete list, it is a basic look at functionality that food and beverage manufacturers need in an effective solution.

Flexible and Extensive Lot Control
Code Tracking
Materials Tracing
Regulation Management
FDA Requirements
Storage and Handling
Packaging and Labeling
Recall Management
Test/Mock Recalls
Recall Data Organization
Expiration Date Monitoring
Warning Notices
Inventory Rotation Management
Waste Tracking
Growth Capabilities
Addition of Processes
Additional User Support

ERP solutions can be an amazing tool that will do wonders for your business, but it is important to remember that without the right ERP, those benefits begin to lessen rapidly. An ERP provider that caters to the food and beverage industry can help you ensure that your investment in a system is a wise one.

How Food and Beverage Accounting Principles Will Increase Profits

Restaurants, pubs, and eateries, and any business that serves food and beverages, are always tricky places to do accounting. There are many reasons why food and beverages are difficult to track: they are consumable, food and beverages can spoil, and orders can be returned to the kitchen by customers. Food and beverage accounting principles can help to prevent financial losses for your establishment. If you follow these simple pieces of advice your business can improve its accounting, and hopefully increase profits.

Conduct Menu Engineering

Before you open your establishment or consider introducing a new menu item, you should conduct some menu engineering. This involves analyzing how many meals a certain amount of food can make, and determining the price that a customer will pay for an item. Menu engineering also determines an item’s popularity, and therefore, its profitability. This is the start of quantifying and controlling food and beverage for accounting purposes.

Use Standardized Recipes

The use of standardized recipes that are followed by everyone in the kitchen is the next step in food and beverage accounting. You need to make sure that your food inventory will make a certain number of meals, and your beverages are poured to a common standard. All employees should be trained to follow these guidelines. When they don’t, your business is losing money and profit.

Track Sales Carefully

All of your staff that deals with ringing in meals, customer payments, and cashing out cash registers should be trained to do so properly and diligently. Proper training can prevent many errors at the till that can throw off inventory and skew your accounting numbers. Make sure that everyone is well versed in how to use the register and your food and beverage accounting will be so much simpler.

Strict Purchasing Guidelines

Everyone in your establishment should be aware of and adhere to strict purchasing guidelines in order to establish effective food and beverage accounting. There should be one person designated to make purchases for the business, and he or she should be informed of inventory counts so that he or she can place orders. This prevents over ordering and food spoilage, which cause eateries a lot of money! Prevent this by putting a procedure in place before ordering and purchasing becomes an issue for you.

Have Effective Inventory Management

Effective inventory practices are essential to proper food and beverage accounting. You should create inventory sheets and an inventory policy that guides employees as to how often they should conduct inventories, and how they should be conducted. Inventories can aid with ordering the necessary amount of supplies, and also with determining if standardized recipes are being followed.

Food and beverage accounting is essential to the success of any eatery. You need to do menu engineering to determine the profitability and costs of individual items, and you need strict recipe inventory and purchasing guidelines to make sure food orders are being used to their full potential. If you own a restaurant, pub, or bar, it’s extremely important that you implement the suggestions detailed above to improve your food and beverage accounting practices.