The pressure is on every food and beverage manufacturing company these days. With high competition, changing regulations and constantly evolving manufacturing and distribution processes, keeping your business current is highly challenging and of the utmost importance. To grow your business, it is imperative your organization evolves as quickly as the needs of today’s consumers. To stay competitive you need to keep inventory costs low and get your product to market fast, all while staying apprised of the ever-changing technology and industry trends to ensure you meet consumer demand.
At BDO Solutions, we understand your challenges and the various elements that go into running a successful business. Let’s explore three technology drivers to help your company navigate the current economic realities facing food and beverage manufacturers in Canada.
Software Optimization for Foreign Currencies
Over the past year, Canadians have witnessed a 30% decline in the value of our dollar. This is a prevailing issue for companies engaging in out-of-country business, especially important in the traditionally lower margin food and beverage space. Looking outside of our own borders is essential for business growth and ensuring we work with the most modern systems to help optimize the handling of foreign currencies. Most modern Enterprise Resource Planning (ERP) systems, such as Microsoft Dynamics NAV, provide this functionality.
Microsoft Dynamics NAV allows companies to manage multiple currencies throughout the program including payables, receivables, general ledger (G/L) reports, resource, inventory items, and bank accounts. The functionality includes posting and correct valuing of transactions in multiple currencies, displaying general ledger results in multiple currencies, and consolidating companies that use different currencies.
Microsoft Dynamics NAV allows you to transact business for vendors, customers, and bank accounts using a currency other than the local currency. For example, companies can issue an invoice in one currency and accept payment for said invoice in a different currency. Microsoft Dynamics NAV also enables you to designate an additional reporting currency to use for G/L activity, including reporting capabilities, and consolidating subsidiaries that operate in different currencies than the parent company.
ERP Functionality to Help Track Regulatory Reporting
As the flow of goods in the modern supply chain becomes more complex, the ability to keep track of items increases in importance to the companies in the supply chain. While monitoring an item’s transaction flow can be obligatory in certain businesses (for instance, those in the food and beverage industry), other businesses may find it advantageous to monitor products that are associated with warranties or have expiration dates.
Item tracking entries, representing the transaction history of each individual item with serial and/or lot numbers, are the records used to trace an item along its movement through the supply chain. Item tracking provides a company with an easy-to-use tracking system, taking into account information about each unique piece of merchandise, such as when it is received, where it is placed, when it expiration, which customer bought it.
This functionality, using serial and lot numbers, allows users to receive and ship multiple quantities with serial and lot numbers from a single order line entry, with expiration dates.
Using Your ERP System to Drive Profitability
In this very competitive industry, your accounting system must enable you to make timely, proactive, and informed decisions that directly impact your productivity and bottom line — increasing margins and improving cash flow.
- Create accurate and reliable forecasts by accessing and analyzing marketing, sales, order processing, and financial data.
- Confidently make business decisions to increase profitability with the ability to look at costs in detail and in real-time, by customer, sales order, region, or product.
Trade Spend Management
- Maintain a competitive advantage with the ability to manage promotions, sales prices, and discounts, and measure budgeted to actual trade spends.
Financial Reporting and Analysis
- Perform analysis, produce reports that put information in the hands of key stakeholders, and tailor analysis/reports to meet their unique requirements.
BDO Solutions can help your food and beverage business advance and simplify. Our food and beverage ERP solution, built using Microsoft Dynamics NAV, helps you manage your business while streamlining operations for improved performance. BDO Solutions helps make food and beverage manufacturers more successful by developing and implementing Microsoft-based solutions to maximize efficiency and overall business performance.
For more information on an ERP solution for your food and beverage manufacturing organization, contact the BDO Solutions NAV Team.