Monday, December 1, 2014

Inventory Balances

If you are in the food industry you already know that one of the primary challenges is your inventory level.  You need enough supplies to satisfy customer demand, but not too much due to obvious reasons of expiration dates and potential spoilage. 

Enterprise Resource Planning (ERP) solutions are designed to streamline operations and provide a central repository of information to effectively manage inventory processing.

Do you walk around and “look” at inventory to guess and gauge usage and need?

Many food distributors do just that.  They have been in business a long time and there is built in knowledge of customer and seasonal demand.  What moves, what does not and what to do with surpluses or not having sufficient supply and cost expense of expediting replacement inventory?

How does your organization handle recalls and FDA requirements (FDA Food Safety Modernization Act - FSMA)?  Do you have the ability to include all lot numbers on products and paperwork?  How much time and effort does it take you to process a recall?  What about the paperwork and certificates of origin?  Where are these documents found and how are they linked to your inventory?

If you are processing food inventory manually, then your ability to meet the FSMA requirements will be limited and expose your business to great risk and regulatory nightmare.

How efficiently do you process your distribution, truck loading and routing?  What tools does your ERP solution provide to ensure your customer needs are met?  How long does it take to train your workforce?  Is the equipment and process intuitive?  How many times during the day do they have to look up information and how much time does it take?

Handling inventory is a primary focus of food distributors as is financial processing.  You need to service your customers, yet also manage their credit usage on the Accounts Receivable (AR) side and expenditures via Accounts Payable (AP) on the vendor/supplier side.  The General Ledger (GL) ties all the various aspects of the financial reporting and forecasting together.

If these topics strike a nerve with your organization and you are curious if you are doing everything reasonably possible to empower your workforce and drive efficiency in your operations, then it is time to contact Dolvin Consulting.  We work with industry experts to help you look at and evaluate your organization from a fresh perspective.

We look forward to serving your needs.

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