3 Must-Have Solutions to Streamline Your F&B Operation
The Food and Beverage Inventory Management Software Your Business Needs
The food and beverage (F&B) industry is highly regulated for a good reason. Operations in the F&B sector often handle perishable stock, requiring unique supply chain management to ensure the safe delivery of products. Manufacturers and distributors must comply with health standards to deliver the freshest, highest-quality product without contamination.
Efficient food and beverage operations need excellent inventory management to handle goods from manufacturers to warehouses and beyond safely. Improving inventory management means knowing how to keep sufficient inventory to fill customer orders on time without having so much that part ends up spoiling or going bad. Utilise food and beverage inventory management software to optimise your operations in these three ways.
Reduce Food Damage or Waste
Food waste due to spoilage can incur high costs each year in disposal costs and reordering. An investment in food and beverage inventory management software will quickly pay off by reducing excess inventory and handling, ultimately cutting down on the perishables that go to waste.
With a food and beverage inventory management system, you can reduce waste by focusing on these three areas:
Food and beverage inventory management requires even more focus than other industries. If operations are understocked, there’s a risk of losing revenue and repeat customers. Or, if operations overstock, there’s a chance of increased spoilage, leading to reduced cash flow.
An inventory management system offers real-time data visibility, so operations can accurately forecast supply and demand into the near and distant future, helping prevent inventory from being understocked or overstocked.
Each year around 4.1 million cases of food poisoning are reported in Australia. In order to keep patrons healthy, operations must store highly perishable foods in specific environments. With food and beverage inventory management software, operations can track inventory from a chiller, fridge, or dry storage zones to ensure goods aren’t left in environments that may cause spoilage. Also, inventory management solutions can ensure optimised workflows are in place to solve transport problems by accurately timing production and logistics.
In addition, a complete inventory management solution can help workers implement techniques like first-in-first-out (FIFO), factoring in expiry dates. Expiry date tracking is critical for quality control purposes. For example, some foods may taste less fresh past a certain date, which can lead to customer complaints. Food and beverage inventory management software can ensure workers pick the oldest stock first and are alerted when products expire, so customers only receive high-quality products.
Due to a growing number of food allergies, F&B operations must track products to avoid cross-contamination and meet compliance regulations. Proximity to allergens is a frequent cause of product recall. Inventory must be stored, handled, and packaged correctly to prevent exposure to contaminants. Effective inventory management solutions can help map where products are stored and trace usage at every step.
If a product recall occurs, having track and trace capabilities helps operators identify impacted goods to minimise loss. Inventory management systems offer track and trace functionalities to gain real-time data on items from raw materials to finished goods.
In addition, more detailed traceability is a critical part of recall management planning and execution. With more data down to the batch and serial number, operators can respond faster in the event of a recall, providing customers and stakeholders with accurate information.
Complex operations need the flexibility to create production recipes that allow the blending of mixed component batches. Also, inventory management can offer full traceability regardless of the recipe’s complexity, giving operators a full view of goods from raw materials to finished recipes.
Understand True Production Costs
Knowing the exact quantity and value of the on-hand stock, along with the actual usage of each stock item, is crucial in understanding the cost of goods. Food and beverage inventory management software can help you track ingredient costs to achieve an efficient production process with a bill of materials (BOM), also known as a formula or recipe.
A bill of materials lists the raw materials and quantities needed to manufacture a finished product. BOM ensures that a repeat product is made with the same recipe and quality every time for standardisation, consistency, and traceability.
However, just because workers use the same recipe and quantities for each production yield doesn’t mean the same amount of products are made. Occasionally, there will be some waste or spoilage. Operators can use inventory management software to include a margin of error to reflect the true costs and margins of assembling your goods.
Invest in Food and Beverage Inventory Management Software for Better Compliance, Reduced Waste, and Improved Revenue
Effective inventory control is difficult for any industry but can be even more of a challenge for food and beverage manufacturers due to the added factors of traceability and food safety compliance requirements. Although the F&B industry is complex, the right food and beverage inventory management system can help you streamline your operation in no time.
Datapel offers an automated inventory management solution to help you work safely with food. So, trust the inventory management to us and focus on running your business.