An Enterprise Resource Planning (ERP) solution used to be about just that – planning. But the term ERP has become the general description for a “business system” – software that is used to operate a business.

Businesses are about processing transactions – for fresh produce – orders for fruits and vegetables and the services associated with handling those goods.

The normal core process functions covered by a fresh produce ERP are:

  • Demand and supply forecasting
  • Material Requirements Planning (MRP)
  • Production capacity planning (APS – Advanced Production Scheduling)
  • Sales and purchase orders
  • Inventory management
  • Transportation and works orders (manufacturing)
  • Warehouse management
  • Contract management
  • Product specifications auditing
  • Supplier auditing
  • Receivables and payables
  • General ledger

Good ERP software

Good ERP software providers invest the time to understand specific industries, and sometimes the specific sectors of that industry.

No software will provide a great solution for the fresh produce business without decades of dedication to understanding the specific and shifting needs of fresh produce.

Strong ongoing collaboration between the ERP software provider and the fresh produce organisation is needed in order to iterate the design, improve the business processes, and to incrementally solve more problems and deliver enhanced benefits.

SUPERFICIAL IMPLEMENTATIONS

The integration of these systems have been known to overrun by many years and only include basic functionality. The business will still need to maintain spreadsheets or external poorly-integrated stand-alone software.

USE OF A GENERAL LEDGER MECHANISM

General ledger mechanisms focus on average cost of stock, and possess poor information systems for the fresh produce environment. They often fail to deliver customer and product profitability.

REVERSED IMPLEMENTATIONS

Sometimes companies fail with their attempts to move from older “green screen” systems which use basic computer technology. These companies struggle on, hindered by an ERP that lacks the sophistication and processing power to cope with the complexities of the fresh produce supply chain.

BIG BRANDED ERPS

These do not have a core file structure, i.e. consignment-based, and they do not focus on activity-based costing and accurate, rapid consignment, and sales order profitability.

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