If we talk about the food and beverage sector, all insiders know very well how much the problem of waste is felt. Based on some estimates, it is estimated that around 60-70 billion kg of food is lost along the supply chain each year. It is impossible to contain waste in the food sector without adequate process control. After all, the problem of waste depends on many different causes, among which inefficiencies in processing, possible excess production and perhaps a complete lack of medium and long-term planning. As a result, companies that underestimate the importance of limiting waste could then find themselves faced with a general increase in prices. Let’s see how to treat and reduce them effectively.
5 ways to reduce waste
Review inventory management
In the Food & Beverage sector, inventory management is not so easy to do. The reason is that the products are subject to perishable properties and have a very specific usage time after which they become unusable. It is also for this reason that companies must adhere to very precise storage and transport methods and must also invest attention and time in the management of the supply chain. It follows that good inventory management will be the ideal solution.
If we want to reduce waste, we must start from a careful analysis of inventory and data in order to identify exactly the products most and least in demand over a given period. All of this information will allow you to improve inventory decisions and forecasts so that you can also make more informed decisions about future orders. In this sense, notifications and reports make it possible to know the level of inventory and therefore also to understand when the stocks fall below the level of custody.
Measure food waste
Another useful tip for reducing food waste, in addition to obviously having the right management tools, is to make this waste measurable. Therefore, we will need to be able to identify and circumscribe the operational areas in which this waste occurs. The advice is to create a data log with which to identify the main problems and their causes. Assessing the current state of affairs will make it possible to compare the situation once it has been optimized in order to reach all the possible efficiency gains.
Use an ERP
In this context, the SAP Business One is inserted, an ERP or Enterprise Resource Planning, software that allows you to manage all relevant business processes of the company. This software is aimed at small and medium-sized businesses and allows them to get a real-time idea of the progress of activities and also to plan future actions on the basis of reliable and up-to-date data. The advice is to adopt an ERP equipped with modules with specific functions to manage the processes of the food industry in an integrated way. In this way, we will be able to automate each operational area allowing the collection and analysis of data and also allowing an overview of your business. This will, among other things, improve supply chain operations and also ensure optimized food storage. Returning to the critical points set out in the previous paragraphs, it must also be said that with ERP management software, it will also be possible to simplify inventory monitoring, improve the management of the shelf life of products and also optimize the distribution of perishable foodstuffs and logistics efficiency. We can also improve logistics efficiency and overall productivity to meet compliance regulations and ensure proper food quality. Finally, we will be able to use the food sector management system to obtain advanced reporting and analysis functions in order to base business decisions on real data and not on estimates. In summary, then, with ERP, we can:
- optimize food storage;
- simplify inventory management;
- improve tracking of food shelf life;
- optimize the distribution of perishable foodstuffs;
- improve logistics efficiency.