Among the basic challenges for the small and midsized enterprises of the meat industry are the constant pressure to reduce prices and make discounts, the ever growing energy and raw materials costs, the stringent norms and regulations and the increasing customer demands for better and healthier food.
The most essential principle to not only save your company but make it successful is to make your costs and processes transparent.
The ERP solution developed for the meat industry has been successfully implement by a number of companies all over the world, such as Nikas, Butterball LLC, Perutnina Ptuj, San Miguel Pure Foods Company, Inc, Micarna, Ospelt, Bell, Reinert Germany, Noelke, Sokolow Group, Animex (Smithfield Group), Danish Crown (Denmark), Hilton Food Group Limited (UK), Sara Lee Corporation, Tyson Foods, Inc., ConAgra Foods, Grampian Country Food Group, Muller Fleisch GmbH.
The solution addresses all needs of the small and midsized enterprises by covering the following functionalities:
The solution also features plant maintenance, integration with the big wholesale and retail chains, logistics and transport management.
This functionality builds up accurate pricing management that covers the typical market requirements for livestock procurement. Pricing criteria can be captured in real time in different stages – in the goods receipt area, for example, or during production.
Information flow is seamlessly integrated over the steps of procurement, processing, sales, and distribution thus ensuring gap-free capture of information in the different production stages. The monitoring and control system is compliant with the food safety requirements and the HACCP system for traceability of raw materials, semi-finished and finished products along the production stages and the supply chains.
Yield management involves documenting where in-process meat losses are occurring so that manufacturing can target process improvements. Typically, this means taking data from in-process scales to specifically measure inputs and outputs at key process steps. The goal is to optimize the total throughput of meat; the objective is to provide this data on a near real-time basis so that process corrections can improve future yields. You can set up target quantities, measure results, determine gain/loss, and report and analyze results in a closed loop.
The SAP ERP packaged solution for the meat industry allows analyzing the profitability of products based on contribution margins.
Target costs as well as costs of goods manufactured are displayed and compared to the sales price. The margin contribution of each product sold is calculated, and can be the basis for further improvements and management of the sales – crucial for tactical product portfolio management.
Meeting certain quality criteria (the system maintains all EU and US quality standards and the current requirements of the EC Directives) concerning the raw materials and finished products is critical for the meat industry.
As food safety compliance becomes more advanced, SAP can support the required batch control and track-and-trace capability. The SAP solution has the functionality to find and recall a defective batch already delivered to a customer and trigger batch-specific returns processing.