What Should Food Businesses Consider When Evaluating an ERP?

In today’s fast-paced food industry, managing resources efficiently is crucial for success. Enterprise resource planning (ERP) systems play a pivotal role in streamlining operations, ensuring compliance and enhancing productivity. In this interview with Xtalks, Matt Brown, CEO of Wherefour, shared his insights on the significance of ERP systems for food and beverage businesses. 

From managing growth and ensuring compliance to enhancing user experience and overcoming implementation challenges, an effective ERP system is a cornerstone of operational success. As food businesses continue to evolve, the insights provided by Brown serve as a valuable guide for selecting and implementing the right ERP solution tailored to industry-specific needs.

Watch the Spotlight video and read on to learn about the value of ERP systems for the food and beverage industry.

Do Food Businesses Need an ERP?

According to Brown, the necessity of an ERP system largely depends on the size and scale of the business. Small businesses with a single operator might not feel an immediate need for an ERP as the owner often manages all aspects of the operation. However, as a business grows, the complexity increases, necessitating a more structured approach to managing resources.

Brown emphasizes that businesses with specific customer or investor demands, such as food safety requirements or reliable delivery expectations, greatly benefit from an ERP system. An ERP system provides the transparency needed for accurate cash flow monitoring and operational oversight, especially crucial when preparing for a merger, acquisition or succession planning. 

“Reliable data and transparency are essential for businesses considering an exit strategy or looking to attract investors,” Brown notes.

Importance of Scalability in an ERP System

Scalability is a critical factor in choosing an ERP system, as business needs evolve rapidly with growth. Brown highlights the importance of selecting a technology that can adapt and expand alongside the business. He advises treating the ERP as the single source of truth for all business operations and training staff not only on how to use the system but also on understanding the underlying reasons for its use.

Integration with other tools and technologies used in the business is essential for a seamless operation. Brown points out that an ideal ERP provider should continually innovate to keep up with technological advancements, ensuring the system remains relevant and effective. 

“Choosing a provider that stays on top of technological changes is vital,” he asserts.

Key Functionalities in an ERP System for Food Manufacturers

When it comes to addressing industry-specific challenges such as traceability and compliance, Brown identifies several key functionalities that food manufacturers should look for in an ERP system.

First and foremost is robust inventory management, which forms the foundation of effective resource planning. Enhancing this with comprehensive traceability features allows businesses to track products from raw materials to finished goods, a capability that is increasingly demanded in today’s market.

Mobile accessibility is another crucial feature, enabling real-time data access and management from anywhere. Brown also stresses the importance of data ownership and security, especially concerning proprietary recipes and sensitive business information. 

“A system that does not aggregate your data with others and ensures you have access to your data at all times is critical,” he explains.

Hurdles in Implementing an ERP for the First Time

Implementing an ERP system can be challenging, especially for businesses unfamiliar with the needs of larger operations. Brown points out that the lack of knowledge or experience with the future needs of a growing business can hinder the implementation process.

Standardizing processes is another common hurdle. Small businesses often operate with flexible, ad-hoc methods, which can clash with the structured approach required by an ERP system. Inconsistent data management, where information is scattered across various formats and platforms, also complicates the transition to a centralized ERP system.

Getting buy-in from the entire team is crucial for a successful ERP implementation. “Any big change requires everyone to be on board and committed to making it work,” Brown emphasizes. Without team support, even the best ERP system can fail to deliver its full potential.

Enhancing User Experience in an ERP System

User experience (UX) is a critical component of a successful ERP system. Brown notes that change is inherently challenging for everyone, and different users have varying learning preferences and processing styles. An effective ERP system should be flexible and customizable to accommodate these differences.

Visual elements such as color coding, bolded key data and icons can significantly enhance usability, making it easier for users to navigate and understand the system. This is particularly beneficial for team members who may have different language skills or reading abilities.

Additionally, ERP systems should offer multiple implementation options. While some businesses might prefer a do-it-yourself approach, others may require comprehensive support and training from the ERP provider. “Having real human support and ongoing training is vital for most companies,” Brown concludes.

This article was created in collaboration with the sponsoring company and the Xtalks editorial team.