Food + Beverage Blog

An Ounce Of Prevention Is Worth A Pound Of Cure

An Ounce Of Prevention Is Worth A Pound Of Cure

3/28/2017


Why Investing In Updated ERP Systems Now Is The Project You Should Be Focused On
 

An era of aggressive growth and expansion for the food and beverage industry, coupled with increased scrutiny from consumers and government agencies, has made organized, efficient, and accurate information a non-negotiable for the life of your business. 

The cost of recovering from a food safety scandal due to a lack of proper process management can damage profits and reputations for years. In fact, some experts have claimed that “preparing for an inevitable recall is now part of a food company’s ongoing business costs.” (Gene Grabowski, KGlobal) Today, traceability and transparency are considered “must-haves” for any credible food and beverage manufacturer.

Despite the undeniable need to keep up with industry standards and to upgrade systems, food and beverage companies face the following finance challenges when considering investing in ERP projects:  

  1. Upfront Investment
    Purchasing the necessary equipment to facilitate the change to a new ERP system is a significant investment for your company, in addition to the cost of the software.

  2. Added Fees
    ERP projects are complex and often require custom installation and consultation fees to fit exactly what your business requires. Costs like these often grow and can increase the project budget quickly.

  3. Project Timelines
    Since multiple vendors and consultants are involved in these business-transforming projects, keeping track of multiple vendor’s delivery, installation, and payment schedules can create a hefty administrative burden for your team.

New ERP systems can revolutionize the way that you do business. Food and beverage companies are simplifying and securing their businesses by using ERP to patch together disparate systems, standardize workflows and processes and document food safety and quality information or protocol at every step of the production process.
 
If it is time to modernize your business and invest in a new ERP system and software, consider looking outside of your traditional banking relationship. As a food and beverage specific lessor, First American offers 100% financing, including the rare option to account for soft costs like installation and consulting fees in your financing solution.
 

Find out more about how First American can help you take on your ERP project.

 *source: http://www.fooddive.com/news/food-and-beverage-biggest-challenges-2017/433164/
            

 

 

 

 

 

 

 

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