Which food distribution software do you need?

August 26, 2015

Food Distribution SoftwareOver the years we have had discussions with many companies in the food wholesale and distribution industry who were looking for software suitable for their business.  Most of these companies were looking for capabilities which are commonplace in many food distribution solutions including lot tracking/traceability, landed cost tracking, flexible pricing and multiple units of measure.

Although these features will fulfill the requirements of many in the food wholesale and distribution industry, depending on the specific activities and product mix of your business, there may be additional requirements.  The biggest differences amongst appropriate software solutions is when it comes to “catch weight” functionality.  Companies dealing with canned foods, frozen or dry goods can benefit from ERP software with food distribution specific features.  However, when speaking with food companies that deal with meat, fish, poultry, produce or dairy the term catch weight often becomes part of the discussion.

Catch Weight:

If used in your business, catch weight may be the key determinant in which software you choose.  Commonplace in businesses dealing with produce, meat, poultry and fish this term generally refers to the specific weight of a specific batch of product which is close to the average or standard weight used for that product.  For example you may sell a 16lb case of lamb chops, but depending on the actual cuts of meat in the case it may only weigh 15.7lbs or maybe 16.3lbs. You could have 20 – 16lb cases each with a different actual weight.  How will these be stored in your inventory?  Will you sell them each for the same price or will they be sold by their precise weight? Will you break open a case and sell by smaller weights? When it comes to catch weight functionality it is important to know your requirements, as this is only one version of catch weight and there are many others out there. A potential software provider may tell you that their system can deal with catch weight, but if they define it differently than you do, it may not meet your needs.  In order to avoid any confusion, make sure you have a clear understanding of your requirements and be as specific as possible when speaking with software vendors. If you do require catch weight functionality make sure that it becomes an integral part of your search, and don’t waste your time looking at software without it.

For those businesses dealing with canned, frozen and dry packaged goods, in which the weights and sizes will be standard each time, it is unlikely that you will require catch weight functionality.  This can potentially provide you with more software options to choose from with lower price tags.  In this situation an integrated ERP solution with specialized food distribution features such as the following is likely what you will need to run your business.

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Food Distribution Software: What to Look For

June 22, 2015

food-distribution-wholesale-softwareThis post outlines specific functionality that one should reasonably expect from Food Distribution Software.

The food distribution industry is very unique in a number of different ways. With numerous standards and regulations set by governing bodies in place, as well as an overall level of quality that must be upheld to customers, it is important to employ a software system designed specifically for food wholesalers and distributors. Most software packages have similar standard inventory and accounting functionality that users have come to expect in a true ERP software system. However, it is the additional food industry specific features such as lot tracking, landed cost tracking, multiple units of measure, and flexible pricing that make a system optimized for the food industry.

Key Features:

  • Lot Tracking
  • Landed Cost Tracking
  • Multiple Units of Measurement
  • Flexible Pricing

Lot Tracking

This facilitates robust product traceability functionality in order to keep records of which customers received specific groups of items or shipments. The supplier and the date that items were purchased are also referenced, allowing managers to track an individual group of products throughout the supply chain, ultimately from supplier to end customer. This functionality is especially important to food distributors as it is a key competency in achieving FDA/ISO/CFIA compliance. Many companies in the food distribution industry rely on lot tracking to track internal and external lot numbers, manage best before and expiry dates, as well as simplify product recalls and warnings in case of an emergency.

Landed Cost Tracking

Landed cost tracking allows a food distribution company to account for all the costs associated with getting inventory from a supplier to their warehouse. This allows a company to arrive at its ‘true inventory costs’, which may include duty, brokerage, freight, insurance, and storage, in addition to the cost of the inventory itself. Landed cost tracking provides important information to business owners and decision makers when making purchasing and pricing decisions, as well as aids in maintaining target gross margins by accounting for the total inventory cost, and not just a sub-section of it.

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