Accelerating the adoption of a circular economy in the food and beverage industry with Sage X3

Without a strong operational foundation, your business may struggle to achieve optimal results in your initiative to support a circular economy.

The right cross-functional digital platform that can help drive holistic change – like an ERP solution built for the food and beverage industry – can be a game-changer for organisations trying to get greener and go circular.

With mobile automation and powerful analytical tools, an advanced ERP system like Sage X3, specifically suited to food and beverage businesses, can help you find those procedures that need retooling to reduce waste generated.

Supply chain management is another critical feature of ERP for businesses striving to facilitate a circular economy model. Because you may be working with new partners as you search for more environmentally friendly material providers and possibly restructure your distribution model, you need complete control and visibility as you reconfigure your products’ journeys from source to destination.

How does Sage X3 help food and beverage manufacturers adopt a circular economy model?

1. Reduce waste with Bill of Materials (BOM) and recipe management

By ensuring the accuracy of the BOM, waste is reduced, and replenishment is aimed at Just-In-Time (JIT), which reduces unnecessary loads on the system.

Recipe management ensures you have full control of the quantity, quality and cost of the raw materials, and real-time control of your recipes.

If an ingredient is found to be substandard, a capability like a ‘where-used’ search can be used to identify all the products that might be affected and quickly mitigate any risk or further waste.

Sage X3 benefits:
  • Supports single and multi-level Bill of Materials (BOM) to manage recipes and routings during production.
  • Yield calculation and tracking (+/-) throughout production.
  • Manages by-products of the production process, maintaining raw material potency and other key product attributes.
2. Visibility of stock levels with Material Requirements Planning (MRP)

No food manufacturers want to hold stock that is not going to be used soon and that can be avoided by using MRP. MRP provides visibility into production activities through collaborative planning. You can create, release, update and monitor work orders throughout production or outsourcing processes including the ability to control and manage batches where required.

Knowing what’s needed, how much is needed, and when it’s needed helps companies to reduce waste.

Sage X3 benefits:
  • Shelf-life management with expiration date control and use-by date to fulfil orders based on unique customer needs.
  • Schedule production runs on user-defined criteria: by hourly, shift or any other period that fits the production cycle.
  • Update work orders during production— required changes are reported as they occur.
3. Guarantee food safety and minimise waste through automated inventory management

Most food items are perishable, making it essential to monitor expiration dates, batch numbers, and product volumes to guarantee food safety and minimise waste. A food inventory tracking system that logs and tracks these criteria, through accurate stock control, provides the assurance that items are stored in the required conditions and consumed before expiring.

Sage X3 benefits:
  • Multi-level warehousing: location, lot and sub-lot.
  • Shelf-life management with expiration date control including use-by-date management.
  • Replenishment, inter-site transfers.
4. Reuse materials with co-products and by-products capabilities

Managing co-products and by-products results in less waste, and better machine utilisation allows greater opportunities to reuse materials. Businesses can also generate extra revenue by creating demand for by-products that are not used, into products that can be sold to other organisations that can use them, i.e., biofuel or packaging industry.

Sage X3 benefits:
  • Increase yield and profitability by managing the tracking and pricing of by-products.
  • Support for both finite and infinite capacity requirements planning.
5. Enable full lot traceability with Supply Chain Management (SCM) functionality

An ERP system allows you to control, manage and gain visibility of your supply chain, procurement and materials processes with full lot traceability, allowing you to use sustainable resources.

Sage X3 benefits:
  • Forward and backward traceability across the supply chain.
  • Track each ingredient and end-item by plant, batch or supplier, lots and sub-lots, along with automated recall capabilities.
  • Equipped to manage any recall situation rapidly in minutes – not hours or days.
6. Respond quickly to defects and hazards with traceability capabilities, including allergen control

ERP systems provide lot traceability at all stages of the production process, allowing manufacturers to respond at lightning speed to any defect or hazard, down to the level of each individual ingredient, therefore reducing waste levels at each stage of the manufacturing process. Many ERPs, like Sage X3, also have the functionality to track and manage allergens across food production.

Sage X3 benefits:
  • Conduct inspections throughout packaging and production, then automatically quarantine suspicious or substandard items for further inspection or disposal.
  • Quality Control (QC) testing and analysis covers raw materials, intermediates, and finished goods.
  • Allergen tracking and alerts.

Download our Adopting a circular economy model in the food and beverage industry guide to find out more about best practices for adopting a circular economy model and how an ERP system like Sage X3 can help food and beverage businesses accelerate their efforts in building a circular economy model.

2024-01-31T14:23:11+00:00July 19, 2023|Blog|
Go to Top