Meat management made easy – Food & Drink Business

This is a sponsored article provided by CSB-System.

The meat industry is going through tough times with rising raw material prices, pressure on margins and consumer-driven markets. CBS-System explains how the ERP system can help you.

The meat trade is not easy: meat manufacturers must hold their ground in a global competition where increasingly complex supply chains go hand in hand with the growing demands of retailers for supply capacity and quality. Rising material prices are adding pressure on profit margins. Companies in this sector must open up new sales channels while ensuring compliance with strict legal requirements. At the same time, they need to advance digitalization in their factories.

When it comes to optimizing a system in the meat industry, you are faced with differing requirements and many starting conditions. The same goes for the maturity levels of the IT infrastructure and the ERP system as the central nervous system. The good news is that the wide variety of starting points for digitizing processes with ERP is matched only by the value it creates for businesses – if they set the right priorities.

The prerequisite for this is a process that meets four objectives: promoting additional growth through digital technologies, strengthening competitiveness through smarter processes, mobilizing data for faster decision-making, and improving resilience and capacity. of reaction.

1. Use digital technologies as growth drivers

The role of the consumer is increasingly relevant, as he becomes a major player who determines the new standards and rules of the game in the meat industry. This is fertile ground for meat processors taking advantage of the growth potential of digitalization.

On the one hand, they focus on their product range which, with the support of the ERP, can be adapted to consumer trends such as regionalism or organic products. On the other hand, the coronavirus pandemic has accelerated the transition to e-food by several years, making investments in online stores a priority.

Direct selling is no longer reserved for the big players in the industry; it is also relevant for many SMEs. For those selling directly through their own digital channels, it offers a great opportunity for additional revenue and organic growth – beyond being listed for food retailer shelves.

Companies that anticipate customer demands early on and translate them into processes, products and services will dominate the competition. This requires flexible and scalable IT and production infrastructures that enable efficient integration and analysis of data from farm to fork and enable rapid adaptation to changes in demand.

2. Improve competitiveness through smart processes

The strength of many meat companies is their product leadership. Today, however, product leadership involves more than just a product. It also means mastering the processes supporting the product.

Ultimately, IT-assisted process acceleration and improved data processing efficiency are decisive for success. It is therefore all the more important to find productive solutions.

One objective must be communication between existing systems, equipment and machines: for example, the transfer of data from production systems to the ERP as input for analysis and management tools.

In addition to ERP associated with MES and CIM, industrial imaging plays a major role in factory automation. Predictive maintenance and robotics are additional ways to make processes smarter. The intelligent organization of your operations opens up new optimization opportunities for your business. This step becomes all the more relevant as the industry feels the pressure of rising costs, regulations, changing consumer behavior and fierce competition.

3. Enjoy fast decision making

Today’s meat industry is all about data. In the daily effort to make the best decisions, using the right measures will be your best weapon.

ERP is essential for accelerating decision-making processes. It helps speed up processes and workflows while providing quick access to information. Functions such as intelligent production planning, reporting on defined KPIs, information from finance and controlling or optimizing inventory management are high on the list of most companies.

This involves a substantial reduction in manual labor through the automation and digitization of production operations, leading to massive gains in internal processes. Each digitized process provides data from which decisions can be derived. All of a sudden, you are able to clearly determine the contribution margins your products need to achieve, identify suppliers with the best product quality, or uncover “blind spots” in traceability.

4. Improve resilience and responsiveness

Efficient management processes, flexibility and seamless supply chain processes have gained enormous importance during the pandemic. Solutions for more resilience and planning stability have become essential.

At first glance, this might appear to be operational issues resulting from the current situation. But if you take a closer look, you will see the inherent strategy: ERP must play an important role in meeting the enormous challenges of future markets. Stable and efficient processes as well as scalable and flexible IT environments are generalized skills. Moreover, they are essential to remain adaptable to unforeseen events and market fluctuations.

Smart sales planning enables forecasting taking into account available storage capacity and product shelf life. Software-assisted inventory optimization facilitates balancing low inventory and optimal supply capacity.

In short, the complete digital support of the value chain, from processing to distribution, ensures maximum production chain flexibility – and improves resilience.

Strategic projects for the years to come

Digitization is not limited to incremental improvements: it is a strategic project for the meat production of the future. Today, the success of many meat processing companies is based on the concept of continuous computer-assisted optimization.

The use of new technologies has the potential to further improve this proven strategy and offset rising process costs through efficiency improvements and automation, even if cost pressures only allow small stages of development.

How can we get there? Ideally, starting at the end of the operation’s value chain instead of moving forward with a technology mindset. Technologies are implemented where they add value, for example, through financial gains or customer benefits.

For CSB-System case studies, visit the website, YouTube or LinkedIn.

Comments are closed.