Food Cost Inventory
Many smaller food companies start by using spreadsheets to track production costs, food cost inventory, etc. And while volumes and variability are low, this is feasible. However, it quickly becomes onerous, and, as a result, error-prone once the business grows. Then, keeping track of raw materials deliveries, tracking expiration dates and the need to be able to manage recalls effectively and quickly means a more sophisticated system is needed.
Tracking Food Costs
Compliance is a big issue in food manufacturing and distribution and having a visible and auditable traceability management system is essential. So, tracking and tracing food and the cost of food is a big issue.
As a result, a food manufacturer or distributor requires a more elaborate inventory process to comply with the many regulations they must follow.
The production processes are quite different for most manufacturing companies. A manufacturer of bicycles does not have to manage inventory in decimal places or cope with co-products and by-products. Cleaning the production line between batches is not a big issue. A bike I a bike.
As such, many popular inventory management and ERP software solutions are just not suitable to the food manufacturer.
Food Distribution Software
A food distributor has many of the same challenges. Traceability is essential. Shelf life and expiration dates are paramount. Keeping up to date with trends and demands from the larger (more onerous) customers is a massive issue. Blockchain was not an issue until recently, and now all food distribution companies need to have all-encompassing plans and strategies.
What the Food Distributor Needs
With thousands of supermarkets across the U.S. alone, a food distributor’s handling of food items relies on the efficiency of supply chains, warehouse managers, packers, and careful logistics to deliver fresh food across a wide geographic area.
Every touchpoint must be logged, and each item scanned for a full view of movement through the warehouse. The ability to scan a product, log its description and expiration ensure a plan is in place to place it in the hands of the customer before it expires.
SOS Inventory Works Fabulously for Food Businesses
SOS Inventory is widely used by food manufacturers and distributors alike. A business can create recipes with raw materials, continuously updating inventory counts in the process. Each food item can be assigned a lot number that will follow it through all operations and be affiliated with the product’s final destination for easy tracing.