Even amid challenging events like the COVID-19 pandemic, the Philippines’ food and beverage industry crossed the USD 100 billion threshold in 2020. The industry is expected to grow at a steady compound annual growth rate (CAGR) of 7.16% until 2027, no doubt bolstered by an eager market that will always be hungry for both quality and innovation.
However, it’s no secret that the Philippine food and beverage sector is a highly competitive one. Entrepreneurs that run food and beverage retail businesses, quick-service restaurant chains, or other similar establishments are under constant pressure to adapt to trends, to manage their resources wisely, and to maintain enduring relationships with their customers and suppliers. Without the willingness to undergo a digital transformation and invest in up-to-the-minute business infrastructure to support their activities, even businesses that are initially met with fanfare from customers run the risk of going under in just a short time.
One type of technology that’s been a boon for food and beverage businesses is enterprise resource planning (ERP) software. ERP solutions typically consist of core modules that can take care of essential business functions like accounting and finance, sales, inventory management, and human resources (HR), plus the option to add or subtract these as needed. Businesses from various industries benefit from the analytics and automation capabilities supplied by ERPs, as well as having a consolidated 360-degree view of their enterprises in real time. But the software has truly taken the food and beverage industry to new heights, and any supermarket, fast food chain, café chain, or other establishment would gain a significant advantage in their operations by investing in an ERP system.
Here’s a quick overview of how ERP systems have transformed the modern food industry, as well as what you could stand to gain from onboarding ERP software for your own company.
ERPs Have Optimized the Purchasing Process to Prevent Spoilage and Damage of Food Items
One thing that makes managing a food and beverage business trickier than managing any other type of business is that stock is especially vulnerable to spoilage and damage. Even a few missteps or inaccuracies in keeping inventory for food and beverage products can result in thousands of pesos worth of losses.
ERP systems, however, have helped streamline the purchasing process for both the raw materials and finished goods sold in food-related businesses. The software allows companies to manage large and complex inventories accurately and with ease, and features like auto-notifications can prompt purchasers to restock precisely on time. Greater control and accuracy over purchasing and inventory management processes have kept food and beverage businesses afloat, and it’s all thanks to ERPs.
ERPs Have Strengthened Visibility and Transparency Across the Supply Chain
The best ERP systems have also allowed food and beverage enterprises to manage their relationships with their suppliers. Being able to count and keep track of products in real-time has made it easier for businesses to track progress within their supply chain and to know whether they’re on the same page about each supplier’s commitments.
That, in turn, indicates whether they’re getting their money’s worth from their current suppliers, or whether it’s time to find new ones who can keep up with the business’s demands. This hindsight matters when it comes to implementing key improvements along the supply chain and, ultimately, keeping food and beverage customers satisfied.
ERPs Have Bolstered Food and Beverage Businesses’ Customer Relationship Management
On the customer side, ERPs have also helped food and beverage businesses broker lasting relationships with their customers. ERPs that are integrated with a supermarket or restaurant chain’s point of sale (POS) systems, for example, can also roll out reward points systems that are tied to the amount that each customer spends.
Some food and beverage businesses are known specifically for their robust rewards and loyalty management programs, and ERP systems often serve as their backbone. In launching programs that enhance customer relationship management (CRM), these companies can cultivate huge customer bases that will patronize them over their competitors for a long time.
ERPs Have Enhanced Sales Forecasting and Financial Decision-Making for Food and Beverage Business Leaders
The food and beverage industry can sometimes be unpredictable, and today’s hot trend may not necessarily be the one that’s still in fashion next quarter. The most successful businesses have their finger on the pulse of their sales forecasts and a sharpened ability to make timely financial decisions, even amidst rapidly evolving trends.
An ERP system is a good investment for both of those things. Its advanced analytics and reporting capabilities allow businesses to harvest accurate and up-to-date data on their sales and financial performance. That allows them to respond close to real-time and to quickly fine-tune their business strategies to maximize profits.
The Philippines’ food and beverage industry will remain a tough one to break into, but there are a lot of growth opportunities for businesses that make smart and innovative choices. As illustrated in the points above, getting a functional ERP system is one of them. Consider onboarding one today with the help of a software vendor like ANSI Information Systems, Inc. The company employs ERP experts who are well-versed in the needs of companies from the food and beverage sector.