Tackling Logistical Challenges in the F&B Industry with SAP ERP

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The last few years have seen pressures on UK industries increase dramatically, arguably nowhere more so than within the food and beverage sector. With higher input costs, increased volatility and unpredictability within both the supply chain and consumer demand, combined with greater demand for online accessibility and sustainability, the need to have operations and manufacturing processes that are as efficient as possible is now a business imperative.

Throughout our latest webinar series, we’ve explored some of the most pressing issues and challenges in the industry. We’ve been looking at the following topics:

SAP, EDI and Online Shopping Adoption – ordering process and supply chain integration
The Connected Factory – looking at the efficiencies that can be achieved when companies start to take some of that automation and integration to the factory floor;
Sustainability Strategies and how SAP ERP can help you control, track and reduce carbon emissions;

And, for our fourth webinar from the series, we looked at logistical challenges, and how SAP can help businesses in the food & drink sector overcome some of them and achieve full transparency and efficiencies throughout the whole logistics network.

Gaining control over all operations

It is currently almost an intra-day occurrence that we hear about issues within businesses’ supply chains and logistical operations – from delays to raw materials and supplier shortfall; staff shortages within production facilities; to driver shortages and fleet capacity – logistically, food and drink businesses face a huge number of moving parts that can affect their ability to meet their contractual obligations and – ultimately – their customer promise.

The good news is that a fully integrated ERP system can ensure that there are no so-called ‘black boxes’ – no points of hidden or missing information – and therefore no reason for your business to not be fully in control.

> VIDEO: Watch the recording of this webinar to get more insights from our Food and Beverage SAP experts.

The first step in the process is to have a full understanding, and full visibility, of your impending, expected and forecasted demand. Having a clear demand plan will allow you to work that through each step of the logistics process:

What raw ingredients will you need to have available and when?
How will demand fluctuations affect the production process and factory resources required?
How will it impact production line maintenance schedules?
What fleet capacity – down to route optimisation – will be needed to fulfill orders on time and in full?

Particularly when it comes to fleet optimisation, a fully integrated ERP solution can make a world of difference if you’re using an outsourced or 3PL (Third Party Logistics) provider.

In this scenario, you need to know when your shipment was dispatched; whether and when it was delivered to your customer; whether it’s going to be returned to you or not. This knowledge is going to drive your inventory accuracy; your invoicing processes; and your relationship with your customer – be that is the end consumer, wholesaler or retailer. Again, this is where ERP – and SAP specifically – come into their own due to the touch points, the API’s and the technical terminology that have been developed that allow you to easily share this type of information with your 3PL and, critically, vice versa.

Taking the insight yet more granular, a fully integrated ERP system can even give you real-time route tracking visibility; allowing you to define the most efficient routes – even being able to share information as to exactly where your product is on its journey to the customer for optimal customer / consumer-to-brand engagement.

At the opposite end of the scale, a fully integrated ERP solution will enable you to de-risk your suppliers’ performance, highlighting where you might have shortfalls or where there may be risks. Indeed, contrary to historical best practice, in today’s volatile circumstances, rather than relying on one supplier you may choose to expand your options to ensure supply routes are – at least to some extent – protected.

> RELATED BLOG POST: How Can SAP Managed Service Providers Help You Minimise Delivery Driver Shortage Disruption?

In summary

Whether it’s the ordering process; the factory setting; meeting sustainability credentials; or tackling supply chain volatility, having a fully integrated ERP solution can unlock the power of the information, the data, that is sitting within your business.

An SME SAP consultancy, Absoft has supported manufacturers, large and small, across a range of industries with SAP implementations, operations optimisations and migrations for over thirty years. As a Microsoft and SAP Partner, Absoft is ideally positioned to help and advise on moving and running your SAP systems into the cloud and optimising for optimum efficiencies and cost savings.