Food + Beverage Blog

3 Things You Need To Do Reduce Costs In Food + Beverage

3 Things You Need To Do Reduce Costs In Food + Beverage

4/26/2017

Food and beverage remains a price-driven business in which per-unit costs determine profitability.”

- Food Processing Special Report* 

In the effort to keep costs down, proactively evaluating your technology and plans for automation is critical. However, this task, and the associated price tag, can be daunting. Here are the three things you can prioritize to keep your position in the market “strategic” instead of “stagnant”: 

1. Invest in Up-To-Date ERP

Like a talented orchestra conductor, an up-to-date, modern ERP system coordinates every aspect of your business – which is music to everyone’s ears.

These systems come with a range of benefits including:

  • Standardizing workflows
  • Optimizing procedure efficiencies
  • Detailed record keeping
  • Risk assessment data
  • Instant visibility of inventory
  • Alerts to malfunctions/violations as they occur

Allowing legacy systems to slow your day-to-day, or even allow mistakes to happen, is something that companies can no longer risk if they want to remain the preferred choice of their partners and consumers.
 

2. Plan for Automation      

Too often we hear “it’s working fine for us right now” or “this is how we’re used to doing things” when we talk with clients about their processes. However recent research has revealed that this philosophy will not hold up much longer in the food and beverage space.
 
Investment in automation technology is on the rise, with 44% of respondents indicating they’ve increased budgets for the tech in the last two years. This number rises to 56% amongst firms who already have some level of automation.

3. Explore Your Options

Traditional bank financing is not always a good fit for projects like ERP and automation. Undisclosed fees, pre-existing covenants and their inability to finance soft costs are among the reasons food and beverage leaders have turned to leasing as their source of financing to complement their primary banking relationships.
 

How First American Can Help

 
*Food Processing Special Report: What’s Driving Automation Investments in the Food and Beverage Industry 
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