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Using Business Intelligence to Reduce Food Waste

Published on: Nov 12, 2015

Over the past few weeks, we have looked at ways to reduce waste in the food manufacturing industry by using technology to improve warehousing and manufacturing practices. Another tool you can use to reduce waste is business intelligence connected with an enterprise resource planning (ERP) system like Sage EM (formerly known as Sage X3).

Overstocking is a Primary Source of Food Waste

Increasing manufacturing automation and improving traceability are certainly key components in reducing waste; however, a large portion of food waste results from overstocking which comes when companies are unable to sell their finished products. Of course, the danger of lowering stock levels is to run into stock-outs which will also reduce profitability.

Business Intelligence Tools Optimize Inventory

Success in the food manufacturing industry is tied to the ability to accurately forecast consumer demand. Because supply and demand can fluctuate dramatically, it can be a challenge to maintain the right stock levels.  Business intelligence tools are critical components to your systems because they can help take the guesswork out of when to buy and how much to stock. Even small improvements in the problems below can make a big impact on your profitability.

  1. Excess inventory
  2. Stock-outs
  3. Inaccurate counts
  4. Warehouse inefficiency

Your business is complex and it can be a challenge to keep tabs on key performance indicators. How quickly you respond to changes in demand, process problems, and cash flow problems can make a difference in your profitability. With business intelligence, you receive accurate data to optimize inventory, drive growth and reduce costs.

Sage EM (formerly known as Sage X3) Has Built-In Business Intelligence

Sage EM (formerly known as Sage X3) provides robust business intelligence to help companies avoid overstocking. This solution gives insight into historic fluctuations in supply and demand to better enable accurate forecasting; capturing real-time data from the manufacturing floor and the warehouse to make better decisions with better data. More accurate information can lead directly to improved efficiencies, less waste, and higher profitability.

Sage EM (formerly known as Sage X3) is an enterprise resource planning (ERP) system that helps you take control of your processes and integrate your workflows into a single, coherent system. Built to meet the challenges faced by food manufacturing companies, Sage EM (formerly known as Sage X3) will help you to meet exacting regulatory and product standards while creating efficiencies and cost savings.

The ERP software offers seamless integration to automate processes and share data throughout your organization. Sharing data transparently enables your company to be more efficient and effective.

Sage EM (formerly known as Sage X3) combines advanced manufacturing, distribution, warehousing, customer relationship management (CRM), and accounting functionality with application features that address the unique and specialized needs of your food company, such as:

  • Recipe management
  • Shelf life management with expiration date control
  • Quality management
  • Sophisticated pricing and contract management
  • Product packaging
  • Highly repetitive and high volume process flows
  • Catch weight management
  • Weighing scales
  • Hardware to track the product: barcode labels, scanners

To learn more about reducing food waste with ERP, download our whitepaper, Sage ERP EM (formerly known as Sage X3): Reducing Food Waste and Increasing Efficiency with ERP.

Our small and dedicated team specializes in helping small-to-medium size Canadian businesses and non-profits select and adapt Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Human Resource Management (HRMS), and IT services. With IWI’s 15 years in business and 100 plus years of combined experience, IWI has helped hundreds of food manufacturing, distribution, and financial service companies gain efficiency, grow, and lower their operating costs.

With the unique combination of industry knowledge and diverse technology expertise, IWI provides cost-effective solutions to help clients gain a competitive edge.  As a Sage business partner, servicing the Greater Toronto Area, we support evaluation and implementation of operations and finance systems to optimize technology, ensuring high return on investment with a quick and painless transition to new software.