A common complaint about ERP is that it costs way too much. Understandably, the cost of ERP can be very high, however, businesses already are spending about 25 percent of their budget on supply chain management. Since ERP can manage business processes like accounting, inventory and supply chain management, wouldn’t it make more sense to put that 25 percent towards ERP? Below are 6 benefits of using ERP to manage your supply chain.
Running a supply chain in a costly and effective manner is not easy. There are multiple departments that have their hand in the process, from sales to accounting and distribution. Making sure that this process is running smoothly without miscommunications is practically impossible when the majority of the work is done manually. Not to mention, that the way you run your supply chain can greatly affect how much money you make or save each month. One way to automate this process, making it more efficient and less costly, is by leveraging a supply chain management software with your ERP.
Between allergens and contamination, food and beverage manufacturers have a lot they need to be on the lookout for in order to avoid a recall. One of the most common recalls among food and beverage manufacturers is undeclared allergens, meaning the ingredient list didn’t correctly reflect a common allergen such as peanuts or milk. The other two common reasons were contamination with salmonella or listeria. Serious consequences like illness or death of the consumer is the last place a food and beverage manufacturer wants to find themselves.
Cutting supply chain costs and exceptional customer service are not mutually exclusive. Contrary to popular belief, you don’t have to sacrifice one to achieve the other. There is a balancing act that can be achieved.