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Food Processing ERP: Formulas and Recipes

Written by Chandler Hutchison | Jan 19, 2015 6:00:00 AM
To remain competitive in the coming decades, food processing manufacturers must find new, more efficient ways to transform raw materials into sellable products, while meeting a wide range of requirements. For this, they need complex food processing ERP solutions, which combine planning and reporting capabilities with industry-specific formula, recipe, tracking, and control functionality. By using advanced capabilities, process manufacturers can easily and effectively manage all the variables required to control manufacturing life cycles, gain visibility into business activities, drive continuous improvements, optimize production, manufacture high-quality products, and comply with the latest regulations and standards.

 

Formula and Recipe Functionality: Is It Important?    

The unique characteristics of the food processing industry have determined developers to create software products that can manage niche-specific requirements. Single software solutions, such as Microsoft Dynamics AX, (now named Dynamics 365 Finance and Supply Chain/Operations) can help process manufacturers handle a series of operations, formulas, recipes, extractions, chemical reactions, and many other factors necessary to successfully convert raw materials into final products. Since recipes and formulas include more variations than regular bills of materials, Dynamics AX has become an indispensable tool for food processing manufacturers. As a food processing ERP solution, AX can help you with:

  • Recipe and formulation management – Since recipes and formulations are unique to food processing, manufacturing process management used to pose significant challenges for food and beverage companies. But this is no longer the case. Dynamics AX includes features that manufacturers can use to manage standard, adjusted-as-planned, and adjusted-as-produced recipes, substitute ingredients, formulate products to individual specifications, break down recipes into interim production stages, calculate costs based on ingredients and recipes, view formulations as tables, graphics, or charts, track batch execution, verify and validate compliance requirements, and create and filter reports by ingredient, formula, recipe, batch, stock, and production yield.
  • Production control – Formula and recipe functions included in advanced food processing software can help manufacturers control inventory items and handle different units of measure to optimize production. Since raw materials are usually measured by weight or volume, including different ingredients in a recipe can cause variances in production. To eliminate variances, Dynamics AX has been complemented with conversion factors that convert quantities from one unit of measure to another. The system can also be set up to track ingredients and make them available exactly when they’re required. Using ingredients before their expiration dates can help reduce waste.
  • Batch optimization – Dynamics AX is one of the few food processing ERP solutions that allow you to plan and produce goods against preset batch sizes, which will increase manufacturing yields. Additionally, it enables users to reserve raw materials for specific dates and restrict certain processes. For instance, newly received inventory may be available for viewing, planning, and reservations but put on hold from shipping. New features also facilitate automatic quantity adjustments based on the active ingredients used in recipes. This way, manufacturers can ensure that the right concentrations of ingredients are used in all products.
  • Competitive advantage – Unlike other manufacturers, food processing companies gain a competitive advantage especially through their formulas and recipes. Having a reliable food processing ERP system to control production, reduce costs and lead times, minimize risks, increase profitability, bring products to market faster than before, and efficiently deal with economic pressures and their consequences can help you achieve a competitive position in your niche.

Finally, food and beverage companies have a complex ERP system that fits their unique requirements. Designed with industry-specific capabilities, including advanced recipe and formula functions,  Dynamics AX is one of the few food processing ERP solutions ready to help food processing manufacturers handle variability, adjust ingredients, quantities, and production phases according to the specifications of each product, manage inventory items based on expiration dates, speed up production processes, calculate costs and define yields, track batches and lots, and meet government regulations to produce consistently quality goods and remain competitive.

 
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