Recipe management is a major concern for food and beverage companies. It is critical for manufacturers to have tight control over recipes or formulas to ensure that they aren’t tampered with or changed inadvertently to ensure product consistency, quality, and traceability. It is also important to manage multiple versions of a recipe to allow for constant improvements to cater to altering conditions or customer-specific requirements. Process manufacturing ERP increases productivity, cuts costs, and decreases time spent managing recipes and formulas manually or through external systems or spreadsheets.
It is significant to recognize which type of system is best for recipe management. As a process manufacturer, it is crucial to select the right ERP system in order to best support the formulation in respect to amounts (in gallons, liters, pounds, grams, ounces, etc.) required to make the end product and many food and beverage manufacturers need an ERP system that supports formula and recipe scalability where the quantity of ingredients required changes based on the desired characteristics of the finished good quantity produced.
By comparison, ERP software designed for discrete manufacturers using a bill of materials simply cannot provide the same functionality as the two processes are entirely different. Process manufacturing ERP supports all of the numerous aspects involved in recipe, formula, and batch management.
- Supports scalable batches.
- Enables accurate tracking and costing of co-products and by-products.
- Enables quick access and change to all finished goods using specific ingredients.
- Easily update/duplicate formulas and recipes.
- Supports hazardous material tracking.
- Supports lot tracking and shelf-life management.
- Formulas can be pulled into work orders or batches for tracking/recording of actual ingredients.
- Supports online review of recipes.
- Supports recipes through the integration of formulas with complex calculations.
- Ensures proportions of ingredients to be accurate for all sizes of finished goods.
- Supports ingredient traceability.
- Recipe flexibility with batch processing capabilities.
- Enables tracking and comparing actual yields to standard yields.
- Tracing and tracking materials from supplier receipts to the customer shipments.
- Supports and controls yield, waste, shrinkage, and rework.
With the right ERP system, recipes can be altered simply by copying them from older recipes and making small changes in order to create entirely new products. Version control features provide a historical view of the specific recipe or formula used to produce each finished good lot so you have a complete audit trail to the original ingredient lots used at a specific date and time by batch in case of an unforeseen recall or quality issue.
Recipe-based ERP systems allow the manufacturer to define the production processes with integrated manufacturing costing to account for all production costs within the system. Further, data can be stored or archived for decades with built-in alerts and notifications concerning allergen issues and recalls. All in all, the amount of data is extensive, which is why ERP for recipe management is extremely effective, useful, and vital for food and beverage manufacturers.
Tracking and securing recipe’s is not the only concern of a food and beverage manufacturer that can be addressed with the right ERP system. Learn how to overcome other major industry challenges in the white paper below.