HR Tech Outlook | Thursday, June 25, 2020
An ERP system running on the cloud is also known as Cloud ERP, which can be accessed from anywhere and anytime, just with the prerequisite of the internet and a password. Today companies prefer moving to cloud record systems as they can leverage data for better alignment with partners and customers. A recent KPMG survey reveals that the cloud ERP sector is expected to grow from $58 billion in 2014 to $191 billion in 2020. This shows a huge expansion of the market, including the distributors in the food and beverage industry. Most of the companies have made cloud accounting a core part of the business, thus experiencing emerging economies and greater efficiency across sectors. How? Read to know
Food and beverage industry have their own sets of challenges: food safety, warehouse management, and quality and traceability of products and ingredients. In some companies where the supply chain, warehouse, and distribution are not properly managed, they may face several critical issues such as low margins, lack of proper ways to manage waste, and many more. With some specific modules for the industrial sector, the ERP management for food production can manage traceability, recipes, and quality control to make production safer. While managing operations, ERP gathers a lot of data, and with the help of that data, they can show the way to improve the processes, reduce waste, and increase productivity and profits. Here are a few reasons why the food and beverage industry should embrace the cloud at the earliest.
High Mobility - Distributors usually remain busy in checking stocks, taking orders, tracking opportunities, and closing deals. Cloud makes all these updates in real-time, giving the company a comprehensive view of where it financially stands. With cloud onboard, the spreadsheets and balance sheets have gone outdated.
Cost Reduction - There is quite a high competition among the companies in the food and beverage industry, with many companies operating at a very low-profit margin. Cloud helps the low-profit companies to keep their cost under control by giving distributors real-time access to their inventory. Besides minimizing the amount of stock companies store on their shelves, the cloud helps them to see available stock in real-time. The concept of middleman can completely be bypassed with help of the cloud, and orders can be placed directly from suppliers that save a lot of cost of shipping
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