Monday, March 18, 2013

Control and Visibility

Is there a way to achieve improved productivity, industry compliance and increased profitability?  At the same time?  These goals are not mutually exclusive and in particular the food industry has added pressure from an extra layer of compliance needs with the implementation of the recent act by the Food and Drug Administration (FDA).

Food Distribution and Manufacturing company’s jobs became a bit more complex after January 2011 when the Food Safety Modernization Act was signed.  This “Act” placed added pressure on food manufacturers and distributors to ensure a safe food supply chain.

The law gave the Food and Drug Administration (FDA) the power to order recalls of contaminated food and request records from food organizations to provide reports related to the manufacturing, distribution and packaging of any product. If your company sells a food product and the FDA uncovers a problem with it, be it contaminated or expired for example, the government can request all of your records.  If you fail to provide these records, your company can be banned from selling that product. Furthermore, the FDA has the power to suspend and shut down your business.


These are not pleasing thoughts for an industry already struggling with economic issues, high labor costs, overhead, and cutthroat competition.  Margins are small and volume is needed to make a profit.


Enterprise Resource Planning (ERP) solutions are often the rescue of these organizations.  Whether it is a new solution or upgrade of an existing solution, ERP solution providers are answering the call for compliance while at the same time they typically reduce the manpower needed to achieve results via bar-coding and automation. 


ERP solutions are being leveraged to help with record keeping of purchases, manufacturing, inventory, and pick-pack-ship processing. This automation also helps with rebates, pricing and quality control testing and record keeping.  The transactions and testing can be documented in the case of an audit.


Record keeping is something that computerized solutions do very well.  There may be some additional data collection, but you will utilize the system to do this instead of pen and paper. 


Warehouse Management Systems (WMS) are often coupled with an ERP solution to streamline the automation process and reduce labor overhead.  They become integral components.  Some are third party solutions while others are fully integrated.  Fully integrated solutions are almost always preferable if they provide the functionality needed.  The reduction in overhead in integration and maintenance often makes up the financial difference.  If your ERP solution does offer this module or equivalent, then it is time to perform an evaluation of what else you may be missing.


Control and visibility of inventory, product movement and operations are key components to an efficient operation.  Efficient operations lead to reduced costs and higher profits.  Profits that can be reinvested in your organization to gain a competitive edge.   


Dolvin Consulting works with industry experts to find powerful solutions that will enable your organization to break through the glass ceiling that is holding you back from growth.  Contact us today to see how we can help.  That is why we are here and how we deliver value.


No comments:

Post a Comment