FOOD AND BEVERAGE
FOOD AND BEVERAGE CHALLENGES
Food and beverage companies operate today in an environment very different from that of a few years ago. Some of the old paradigms, such as producing inventory to forecast, long production runs, and a limited number of product categories, are no longer viable. The changing demands and fashions of the consumer market mean that food and beverage processors cannot plan a long product life, and innovation has become a critical factor for survival.
SYSPRO FOR FOOD AND BEVERAGE
SYSPRO provides the means to handle the complexities of the food and beverage industry where the challenges of quality, perishability, the demand for faster inventory turns and deliveries and safety issues mean that time-to-market is all-important. Whatever the recipe, pricing or packaging options, SYSPRO solutions offer improved procurement efficiency, transaction speeds and responsiveness to customer demand
HOW CAN SYSPRO HELP?
SYSPRO’s Lot Traceability module monitors the food or beverage life cycle from initial ingredients, through manufacture to finished goods, shipment and final store delivery. Our inventory management applications promote the maintenance of low inventory levels and incorporate multiple units of measure and catch weights thereby enabling accurate product costing and pricing.
ACCOMODATE VARIABLE END-PRODUCTS
Using SYSPRO’s co-products and manufacturing inspection functionality, you can easily cost and capture the receipt of multiple products of varying grades from jobs originally planned for single-grade items.
You can choose to apportion costs between components and co-products according to a percentage breakdown for total material, operation and sub-contract cost, or you can define percentages against specific operations and materials.
SYSPRO’s Work in Progress inspection system gives you the tools to record the inspection details of manufactured items and, depending on the results, select to receipt, scrap or rework quantities. Units in inspection are visible, but unavailable for use until accepted into stock. Within the inspection function, you can capture detailed records of counts, inspection, scrap, rework and stock receipts.
You can receipt inspection items as the original product to manufacture, or as a different product or products, which is useful for end-products of variable grade. Also, you can receipt items into a warehouse different than what was originally planned.
CONTROL RECIPE CHANGES
Constant innovation is one of the key factors to remaining competitive and on-going research and development to formulate new and better products is integral to the industry. SYSPRO’s Engineering Change Control (ECC) enables you to streamline and apply strict control over your design-to-market processes by providing a rules-based electronic workflow system with full version control, security and auditable history.
ECC gives you the tools to record and track new and modified product recipe and process changes, assess the impact of these changes on costs and associated data, and control the change routing and approval processes. ECC’s queries, audit trail, history and archive facilities, give you quick on-line access to details of prior product versions, as well as the option of reverting to the production of a prior product version. In addition, the facility to attach copies of product drawings to version and release levels provides access to visual details of revisions.
The Where-used Query facility enables you to identify all items affected by the raising of an engineering change order for all routes identified as being under engineering change control. In addition, SYSPRO provides a ‘replace component where-used’ facility that enables the quick replacement of one item with a valid substitute item, thereby streamlining formula changes.
SYSPRO’s ECC, Bill of Materials, Work-in-Progress and Factory Documentation modules enable you to implement controls to ensure that your products are manufactured under consistent processes, to the correct formulae and specifications. Single-level, multi-level, co and by-product bills are all catered for.
Flexible bill definitions accommodate complex raw material and intermediary requirements to ensure precision in quantities required for bulks, batches and packs. You can define each structure level in a bill based on absolute fixed quantities, fixed quantities per, or wet weight percentages. Precision is further enhanced by SYSPRO’s allowances for high tolerances in quantity definitions, as well as the number of levels catered for in a multi-level bill.
IMPROVE FORECAST ACCURACY
Forecasting is, by definition, an inexact science, its purpose is to improve the quality of predictions and thereby enable the fine-tuning of the balance between supply and demand.
In forecasting environments where product ranges and configurations are extensive, bills of material are complex and raw material and component lead times are long, improved forecast accuracy is essential to minimising inventory holding and obsolescence costs without compromising customer service and brand loyalty.
SYSPRO provides tools to enable you to track and evaluate your forecasts, as well as to identify the possible causes of forecast errors. These tools assist you in optimising your forecasts to produce the best possible outcome with minimum forecast error.
The Inventory Optimisation suite of modules enables the entry of manual forecasts, as well as the automatic generation of forecasts via a variety of forecast algorithms, including those that compute for trends, seasonality and cyclical events. In addition, the module provides a competition forecasting method (also known as focus forecasting or the tournament method) which attempts to select the most suitable forecast algorithm, based on a selected error measurement and your SYSPRO sales history data. This enables you to compare results to determine which method is the most suitable for any particular item, whether you forecast products at code, revision, release, or warehouse level. A tracking signal is used to indicate when the validity of the forecast might be in doubt; those items with high forecast errors are highlighted and can be reviewed and adjusted as required.
Forecast accuracy depends not only on the regular evaluation of the forecast error but also on the integrity and nature of the source data. In SYSPRO, forecast accuracy is enhanced through the ability to automatically filter and adjust outliers, as well as to manually adjust forecast base data for quantitative and qualitative factors. Lost sales can also be included in the demand profile.
Furthermore, SYSPRO’s proxy functionality enables the forecasting of new products based on the sales history of similar superseded products which is useful in industries where product life cycles are short.