SAP Business One for Dairy Industry

SAP Business One for Dairy Industry

  • 09th Mar, 2018

Managing dairy products by SMEs is a challenging task that needs to be monitored at every step. From processing and packaging of milk to product delivery to customers who are conscious of quality and food safety, the dairy industries are faced with an enormous venture of maintaining effective and efficient supply chain management, not to mention strict food regulations,  raw milk procurement, distribution, financial and banking and reporting.

A one stop solution for dairy business, SAP Business One features the following:

1.) Supply chain management: Dairy industries were often faced with the loophole of tracking the journey of supply of raw milk to delivery.

With SAP Business One, there is transparency in every stage by defining Co-operative Societies (milk suppliers or farmers) that are attached to a district or region.Details like address, route, time of collection transporter details, contract details and type of milk can be captured through collaborative planning which results in efficient management of inventory, avoids out of stock situations or loss due to expiry of shelf life.

Tracking and tracing at all stages of production, processing and distribution enhances operational efficiency.

2.) Quality Control Management: Management of quality control is done by setting parameters by storing information on cow milk, buffalo milk or mixed milk.

The software allows capturing of daily milk quantity received from the weighing machine and details regarding FAT and SNF contents are considered for quality and pricing.

It captures quality of milk from Societies and rates are set depending on quality of raw milk procurement for billing. It also allows chilling plants located at remote places to upload data on the quality of milk as these have chances of getting spoilt during the journey.

3.) Financial integration module: Society wise billing cycle can be generated which could be customised according to the need. Detailed supplies to societies can be captured as the billing cycle is integrated with finance, cattle feed plant and general stores, allowing quicker accounting. Bills can be auto generated on purchase of milk reducing time for the purchase account team from 5 days to 1 day.

This module includes deductions, bonus, quality-based billing, monitoring operations, automatic invoicing, banking details,simplifying of complicated calculations like incentives to suppliers and gain or loss of milk during transportation.

4.) Real time production monitoring:  Loss due to negligence could be traced through scheduling, monitoring, and reporting through automatic data collection. This enables high visibility which allow actions to rectify problems like pilferage by transporters, keep operations going resulting in recovery of loss, and maintaining good quality of milk.

With SAP Business One, each level of production is recorded from purchase of raw milk to delivery. It provides easy management of supply and routes improving customer services, reducing loss through crates reconciliation. It can capture both quantitative and qualitative data, supports alert managements and smoothens communications.

With standardisation of processes, operational time is reduced almost by 80 percent.SAP Business One for Dairy Industry is versatile, can be easily upgraded, and scalable with innovations and customisations.

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