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Supply Chain Management
Quality and food safety
A selection of the modules provided with food quality and safety
Registration of product specifications
The software makes use of the most advanced registration of product specifications. You enter the raw material specifications once only, and Dynamics 365 for Food & Beverage ERP subsequently calculates the product specifications automatically. In other words: preventing errors and saving a lot of work! Accompanying packaging labels inclusive of allergen and ingredient verification statements are generated automatically.
Tracking & Tracing
In the event of a recall, the remaining batches of the product in question are blocked automatically and the Track & Trace procedure can start. Dynamics 365 for Food & Beverage ERP helps you trace the product both up and down the line, after which you can inform the customers and suppliers concerned. In this way, issues can be addressed and resolved and the image of your food company protected.
Qualitative inspection status
Not only do you want to be able to trace your products from a quantitative perspective, but you also want to do so from a qualitative inspection status. An inspection status of this nature indicates what can be done with a particular batch and how that can be undertaken. This could be quality control, for example. An inspection status facilitates sampling as well as standard verification. On the basis of certain supplier or article characteristics, the system generates a proposal to conduct a sample.
Every food company has to deal with a range of quality assurance systems (including HACCP and European Food Law), whereby a range of registrations need to be dealt with. Logistics chains need to be integrated to facilitate product traceability and to intervene effectively in the event of a calamity. Dynamics 365 for Food & Beverage ERP enables you to adhere demonstrably to all your customers’ quality requirements.
As a food organisation, you have to deal occasionally with non-conformances; those expressed by customers to suppliers, but also internal non-conformances. It is of the essence to handle these non-conformances with all due care by following standard procedures. The non-conformance module allows all non-conformances to be dealt with in a consistent and structured manner.
A selection of the modules provided with Supply Chain Management
Inventory Management (and tracing)
A very important aspect in any food company’s operation is ensuring that both warehouse and inventory management are in good shape. Your warehouse contains significant volumes and various types of load carriers. Obviously, you want to have precise insight into your warehouse’s load carriers and the articles and batch numbers associated with them, and their exact location at any given moment. In order to handle the registration properly and to track all logistical transactions, Dynamics 365 for Food & Beverage ERP offers a fully-integrated pallet administration so that your inventory control is always in good shape. In the event of a recall, you can track and trace in much greater detail and probably only need to part ways with one pallet.
Packaging and (SSCC) labeling
The use of (SSCC) labels applies to almost every food company. The code on the label enables a unique number to be allocated to a given load carrier – a crate or a pallet, for example – for identification purposes. Information is connected to this unique code about the commodities and packaging being transported on the load carrier. With the help of the SSCC labels, the information exchange between customer and supplier takes place much more efficiently. Moreover, SSCC labels offer a reliable tracing option in the event of a product recall, for example. Dynamics 365 for Food & Beverage ERP also offers insight into the value and stock of all packaging.
In order to be able to work efficiently in your warehouse, it is good to make use of tablets, smartphones or scanners that are linked to Dynamics 365 for Food & Beverage ERP by Radio Frequency. Working in this way is easy and user-friendly. Labels are allocated to load carriers and their article number, batch number, and expiry date are scanned. This results in less chance of error because this series of inventory levels, stock picking, unit allocation and stock inventory are processed real-time in Dynamics 365 for Food & Beverage ERP.
Transporting commodities does not just happen. It calls for good planning, smart agreements clear to all parties involved, and the provision of information to the transport companies. In addition, transport management can also be a considerable cost item. Therefore, it is in everyone’s interest to make optimal use of your own or external transportation capacity. Insight into transport management and the entire transport planning process can easily be generated in Dynamics 365 for Food & Beverage ERP.
Dynamics 365 for Food & Beverage ERP offers you total supply chain management across all your sites, without this causing bookkeeping issues. You always have sufficient articles at your disposal, because you can choose between physically shipping stock between various sites and you are able to order at one site while distribution takes place from another. This software platform will help you keep your bookkeeping in good shape.
Organizations that manufacture or trade catch weight products use scales a lot. To enable faster and more accurate weighing of articles and recording their consumption, you can make use of scales integration within Dynamics 365 for Food & Beverage ERP that determines inventory adjustments real-time and automatically. Manual handling is a thing of the past.
Various currencies and languages
Legislation and regulations differ from country to country and often another currency, another language or a different time zone comes into play. This too becomes a thing of the past when using Dynamics 365 for Food & Beverage ERP. All these aspects are embedded in the software platform.
A selection of the modules provided with administration, purchase, and sales
Purchase and sales
Purchase and sales are of course part of Dynamics 365 for Food & Beverage ERP. The customer, for whom you buy and sell, naturally takes center stage in all your business processes. That is the beginning and the end of your value chain. Dynamics 365 for Food & Beverage ERP helps you manage your contacts with customers and suppliers at a business and individual level in one integrated system. Would you like more options in the field of sales opportunities and campaigns (with rebates), then you can expand the solution with Dynamics 365 for Sales.
Contract registration and processing
When dealing with the procurement and sale of products and services, you as an international trading company often have to handle the registration and processing of contracts. This is automatically supported by the trade-specific functionality in Dynamics 365 for Food & Beverage ERP. As well as the accompanying activities for handling these contracts throughout various departments.
The benefits are twofold if you can forecast demand accurately. On the one hand, it leads to more sales (by offering insight into the ‘drivers’ behind your sales results) and boosts customer confidence, and on the other it saves costs thanks to production flow optimisation. The key to demand forecasting with Machine Learning is the relationship between up-to-date data, potentially combined with forecasting (the weather, the economy), in comparison with historical data. This combination of data can facilitate a truly accurate forecast of what is going to be sold. This enables companies to optimize their production planning.
As a food organization, you have customers and suppliers with whom you have made arrangements concerning rebates. A rebate is typically awarded if a given amount of value or volume is ordered over a specific period. And you will probably want to earmark these rebates in a general ledger. You will also want to record the payout of these rebates in your ERP software. Dynamics 365 for Food & Beverage ERP ensures that rebates can be paid out correctly to customers and suppliers.
In the fresh sector, it often happens that you procure, produce or supply products both in pieces and in kilograms, whereby kilograms are leading in the settlement of cost price, procurement, and sales prices. The Catch weight module makes it possible to exercise control regarding the administrative weight variances and to reach the right price settlement.
A selection of the modules provided with production
Advanced Production Planning
Production planning is of eminent importance for correct throughput times in your production department and a seamless connection between demand and supply. Extensive scheduling that takes into account factors such as machine capacity, labor, and the availability of critical materials is a complex issue. For many food companies, this is a daily phenomenon. With Dynamics 365 for Food & Beverage ERP, you are offered insight into the demand for capacity of labor, equipment, and critical materials for the longer term. And you know the current status of orders and inventory, and what you still need to produce to match the demand. This is done with MPS and MRP. You can optimize the planning process with the help of changeover times. The registration of production orders is carried out with screens on the line.
Since user-friendliness is very important in this process, we have elected not to put these screens in the ERP itself, but to build them into Microsoft PowerApps. These apps are ideally suited for use on tablets and smartphones.
Production based on daily forecasts
In the fresh sector, a recurring issue is the short ordering cycles. Much is produced on the basis of that day’s expectation, not according to a well-conceived plan. While production takes place according to these forecasts, sales orders keep coming in throughout the day and production volumes are adjusted.
Operations Control (OC)
The various departments within your company have to work together efficiently. You want to be able to record the output and consumption of your production orders in an efficient manner. And you want to be able to consult that information continuously, in the warehouse or production department. With Operations Control, you can immediately and easily administratively implement the changes that occur in the workplace. This gives you the grip you need on available stock levels. In addition, a clear overview is provided of the released orders in the production planning.
Recording co-products and by-products
Many production companies handle co-products and/or by-products. It is possible to configure one or more co-products and/or by-products per production order in the OC screen. Configurable co-products and/or by-products are for example cutting waste, residual dough that is reused in bread and pastries, or the fact that alongside the standard product sizes, other dimensions can be registered that flow from the production process.
Shop floor control
From within a managent information system you can see if the production forecast is achieved or not. Shop floor control allows you to steer better on production forecasts and you can connect in real-time on the floor. Through Business Intelligence you have insight and the possibility to improve this aspect. You can see exactly which machine or operator is the reason for the setback.
Grip on the Mass balance sheet
Every kilogram you enter into your production process must obviously exit somewhere; the Mass balance sheet. This enables you to demonstrate that the number of raw materials in the production process is exactly according to the end product’s specifications. This has everything to do with fraud prevention and can be shown transparently with the help of Business Intelligence.
Insight in Overall Equipment Effectiveness (OEE)
Food companies require insight into their Overall Equipment Effectiveness (OEE), a KPI that enables you to monitor how efficiently you produce on site. That’s why you need insight into the information driving the process: the availability of your equipment, its performance and the quality of your products. With Business Intelligence you can retrieve this information from Dynamics 365 for Food & Beverage ERP.
What is the precise cost of one unit of product? How many people and machines and how much raw material, cleaning and changeover time do you need for that? You need to know the cost price of a product to be able to perform post-calculation from your production process. And to know what the return on investment is on certain products that you sell, so you know for sure that you are truly making a profit on every individual item.
A selection of the modules provided with Consignment Management
Agreements with suppliers and growers are set forth in so-called consignment contracts. These act as a template for procurement orders in order to enforce a certain workflow for procurement order entry. Documents are submitted by external parties such as suppliers, shipping lines, grower cooperatives, government services, and inspection offices. These are collated in a file that should be centrally accessible. All consignment characteristics should be available in this file: anticipated volume and manner of appearance, but also travel documentation, ships, and ports of arrival. Anticipated incoming volume can be expressed against commercial commitments on the output side. The desired quality and anticipated certification are connected to the suppliers’ documentation. You then receive a list of what the supplier needs to deliver so that you can register the growers and the pre-calculated costs.
Dynamics 365 for Food & Beverage ERP enables you to safeguard the pre-calculation of cost with respect to import through to automatic budgeting of procurement costs to the general ledger in one system. Fewer errors and no more duplication of effort, but fully automated. Everyone is obliged to buy into a certain workflow so that everything is properly entered into the registration process. By the way, this does not generate extra work but offers a flexible and convenient way of submitting orders, and that leads automatically to correct budgeting.
Growers possess various certificates in which the quality labels for which they are certified are noted and for which product certification applies. Should it become apparent that certification does not match quality assurance requirements in the case of an incoming consignment, yet this number is what was offered to the customer, then you have a shortcoming on hand. Being able to manage this certification process is, therefore, a must. Certain growers are certified, others not, and you have to deal with certificates that are approaching their expiry date or certificates for certain product groups. Dynamics 365 for Food & Beverage ERP knows exactly which of a grower’s products are certified for a particular customer – or not. This information is used in the allocation of consignments to the customer and potentially afterward, should a dispute arise.
Quality inspection is typically a standard part of the reception process. Product photos can be made with the help of a tablet. The consignment file is then automatically expanded with truly specific quality assurance reports (including residual requirements) and photos. The photos are registered in the system, wireless and real-time so that they can be accessed in Dynamics 365 for Food & Beverage ERP from anywhere. That gives the sales department immediate insight into the quality of products up for sale, and solid commercial decisions can be taken on the basis of that insight. That safeguards customer satisfaction and mitigates the risk of claims. Periodic or outgoing quality inspections from external inspectors can be linked to the consignment file.
Dynamics 365 for Food & Beverage ERP offers insight into all information pertaining to product ripeness. You can plan the ripeness cells on the basis of supply and can continuously register maturity at a deeper level as well as flexibly register the intended final sales moment. You can plan the sales process on the basis of all this information.
If the result of a quality inspection is negative and falls outside the range of what the customer is prepared to accept, then you as a supplier have to deal with conflict. But also when a grower’s certification expires during delivery or when the wrong consignment is picked. Dynamics 365 for Food & Beverage ERP also has an alarm function that alerts the parties involved to the fact that a conflict has arisen. The system then indicates the alternatives on one central screen: the conflict screen.
Making use of buffering
In many Fresh Produce companies, certain product volume is set aside for specific destinations, such as very important customers, specific sales programmes or for ripening room scheduling. Generally speaking, dummy sales orders are used for this purpose. Dynamics 365 for Food & Beverage ERP has an expansive buffer registration at its disposal, including authorization and logging, so that you can retroactively see exactly who has used what for whatever purpose.
Allocating inventory for sale
Dynamics 365 for Food & Beverage ERP offers insight into inventory at a highly detailed level. Insight is provided into all relevant inventory characteristics for sales staff, such as quality codes, residual requirements, and certification. During this allocation process, the system ensures that only those consignments that fall within the customer’s criteria can be ordered. Potential conflict after inventory allocation is also mapped in Dynamics 365 for Food & Beverage ERP.
Tracking and tracing cost
Just as from a procurement perspective, you have the option of installing a range of cost structures on the sales side as well; at article, customer or customer group level. Consider bonus agreements, rebates, or graduated transportation surcharges. These can be registered at will in Dynamics 365 for Food & Beverage ERP and synchronized with the general ledger.
Create account sales for consignment deals
At the end of the cycle, the consignments are of course also settled with the suppliers. The various settlement alternatives, such as Commission, minimum price guarantee or joint account, are all supported in Dynamics 365 for Food & Beverage ERP. When calculating the consignment, the system takes into account all registered proceeds and costs (procurement, sales, overhead) when proposing a settlement price to the grower. Exceptions to the standard process such as advance notification, sales in commission, and the separate removal of deposited numbers, are also supported by the system.
Insight into consignment results at a detailed level
In Dynamics 365 for Food & Beverage ERP, you have real-time, detailed insight at all times with respect to the current consignment result. All procurement, sales, and overhead cost are continuously reconciled with the consignment, real-time. With Business Intelligence you can extract the results to a higher level to retrieve supplementary information from your data. Which suppliers and growers perform the best within one season? How do the sales margins in the various customer segments relate to these suppliers? Who are the top 10 suppliers per product-market combination? What are the potential explanations for differences between suppliers and how can we further optimize margin?
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