The snacking industry is showing no signs of slowdowns. Especially for potato chips, the demand is high around the calendar. Behind every crunchy bite is a complex supply chain comprising raw potatoes, edible oil, seasoning, preservatives, and more. Hence, it becomes crucial for chip manufacturers to have streamlined inventory operations and maintain proper batch control. Here, there is a need for a solution that takes the two seriously.

SAP Business One comes out to be the ideal solution. It is an enterprise resource planning (ERP) solution that helps organizations increase their efficiency. It comes with modules dedicated to each aspect of a business. It comes with robust inventory management functionality that is useful for businesses of all kinds, including potato chip manufacturers. Let’s take a closer look.

The Price of Poor Inventory Management:

In the typical chips manufacturing unit, there are potatoes. Further, you have oil for frying, seasoning as per flavors, and packaging materials. Before you blink, there you have a plethora of SKUs to deal with. Traditional software was manual, leading to inefficiencies and further caused data silos. Also, it leads to;

i. Overstocking or stockouts of raw materials

ii. Spoilage due to improper FIFO (First In, First Out) handling

iii. Batch mixing errors

iv. Inaccurate costing

v. Difficulty in meeting compliance audits

Such inefficiencies directly affect production schedules, profit margins, and brand reputation.

SAP Business One for Food & Beverages:

1. Real-time Inventory: SAP Business One provides real-time inventory operations. The centralized dashboard can show accurate real-time stock levels of inventory items. This includes raw materials, semi-finished goods, and finished goods. Whether it is raw potatoes, seasoning, or oil – as a potato chips manufacturer you can have an accurate idea of the inventory for all the items. This prevents overstocking and understocking, both of which are harmful to a business.

2. Traceability: SAP Business One tags each product with a unique serial number capturing details like supplier, expiry, quality control, and production. In case of any issue arising, the particular batch can be traced with the unique number. Further, in case of a product recall, it is easier and faster leading to less damage to the brand’s reputation.

3. Shelf-Life Management: Potato chips like most eatables, come with a limited shelf life. SAP Business One enables automatic FIFO stock movement to ensure that older materials are used first. Shelf-life tracking alerts help teams prioritize usage and prevent spoilage.

4. Batch Costing & Profitability: SAP Business One allows businesses to break the batch cost – from raw materials to labor and energy. Manufacturers can compare batches to determine which are profitable and optimize their operations accordingly. This is useful during promotions and seasonal demand spikes to ensure profitability throughout.

5. Production Planning: Inventory and batch planning ties seamlessly into SAP B1’s Material Resource Planning (MRP) & production module. The right material is procured as per the purchase orders to ensure seamless production without any delays or disruptions.

6. Regulatory Compliance: SAP Business One allows potato chip manufacturers to adhere to standards set by the regulatory bodies. It maintains documentation and allows for in-depth reports. It even facilitates audit trails.

Closing Thoughts:

Potato chip manufacturers can gain better control over their organization with robust inventory management. SAP Business One proves to be the perfect ally in helping businesses move from a reactive to a proactive approach when it comes to inventory management.

SoftCore Solutions – SAP Business One Partner in Mumbai has been helping F&B Businesses streamline their operations for growth with customized SAP B1 ERP solutions. With over 20+ years of SAP expertise, our SAP B1 solutions solve industry-specific challenges and help businesses grow efficiently. Enable rapid and sustainable growth for your organization with SAP Business One from the reliable partner, SoftCore Solutions. Book a live demo today.

Frequently Asked Questions (FAQs):

1. Can I trace finished goods back to specific raw material batches?

A. Yes, SAP Business One allows you full traceability of the finished goods to their origins.

2. Is SAP B1 suitable for small-scale chip manufacturers?

A. Yes. SAP Business One is perfectly suited for small-scale potato chip manufacturers. It is an ERP that grows as your business grows without any slowdowns.

3. How long does it take to implement SAP B1 in a chips manufacturing unit?

A. It depends on the number of users, customizations, integration, and other factors. Talk to a seasoned SAP B1 partner like SoftCore Solutions to get an accurate understanding of the timeline to implement SAP Business One ERP.