February 27, 2023

Is Your Food and Beverage ERP Recession Proof?

One of the top questions on the lips of many executives today: Is our organization recession proof?

Team in beverage logistics on deployment briefing looking at tablet computer

As a Food and Beverage executive, you are likely considering the state of your ERP solution and whether it can weather future economic storms.

While the recession probability of the U.S. hovered near zero after the initial phase of the global pandemic from September 2020 to March 2022, it rose to over 30 percent in April. Sadly, it reached 50 percent by June of the same year. 

We get it: knowing how well your chosen solution will hold up over time is crucial to your success.

Your ERP should be a flexible, adaptable foundation for your company's operations to run smoothly.

It shouldn't just be a single technology. Future difficulties, environmental shifts, and the advent of new technology are all considerations in whether your current system is robust and can weather the storms of change. 

'Out-of-the-box' thinking is no longer sufficient

Because of the capabilities of industry-specific ERP solutions, the more standard packages are no longer sufficient for Food and Beverage companies. Solutions claiming to be all things to all people may fall short of the requirements needed in a particular sector. It's crucial to have faith that the software is made for the food sector when choosing a system to last.

The best providers should assist you in customizing their solutions to your significant demands, but not every firm can consider a fully customized system. Nevertheless, it's crucial that you feel confident that experts in the food industry have developed the system you choose. It comes down to two factors:

Industry-specific modules for tasks like warehousing can significantly improve daily operations by speeding up the search for the best answers.

You can be sure that a professional Food and Beverage ERP provider will concentrate all enhancements on the upcoming difficulties and shifting nature of the sector.

Finding the appropriate source is essential

Your relationship with your supplier is equally important as ensuring any software or hardware you purchase is appropriate for the Food and Beverage sector. Consider the supplier's service to be of equal importance and inquire:

  • Do they comprehend my company's unique needs and requirements?
  • How will they support the ERP solution's implementation?
  • How effective is their support system? Will they contribute to employee training and rapid resolution of problems?

Consider your ERP partners as more than just suppliers; they will play a significant part in the transformation of your company.

Global versus local

A sizable portion of the food ERP industry has always consisted of small, regional vendors that provide services to local businesses. Although many people find local expertise and the prospect of a personal relationship attractive, this approach is no longer the most effective. Consider the sector's difficulties, such as addressing climate change and rising food consumption, not to mention the recent pandemic and the challenges it brought. Significant concerns call for effective solutions and engagement from bigger businesses that can allocate more funds to R&D.

The smart money is to continue with them because of the significant position that firms like Microsoft have in the global food ERP sector with their Dynamics platforms. Finding a vendor that can offer all the software benefits while having a solid support system and a vision for how ERP may help your organization is challenging for the food industry.

Scale and scope: preparing today for tomorrow's needs

Even if you believe your solution currently benefits your company, it's crucial to consider whether this will continue to be true. Is your existing solution well-integrated enough to let you scale up quickly in light of the development of your business?

Beyond this, your company's direction is another important consideration. Ensure your ERP is adaptable enough to handle changes like introducing additional packaging lines, growing your personnel, or investing in new technologies.

Delivery options

On-premise hardware and software were once the standard method for delivering ERP in the food business, but more adaptive cloud-based approaches are now taking place. There is a lot to be said about comparing on-premise ERP and cloud-based ERP, but solely in terms of flexibility for the future, cloud-based solutions offer greater flexibility.

SaaS (Software as a Service) ERP ensures that updates are immediately available, reducing the time required of your IT team. Additionally, it makes it simpler for companies and providers to collaborate to pinpoint areas that need improvement.

Whether you're considering upgrading your ERP or implementing a system for the first time, the Liberty Grove team of ERP consultants can guide you through each step for a smooth ERP solution and improve your odds when it comes to recession proof.

About the author

Liberty Grove Software is an established Microsoft Partner that focuses on providing customers with sales, service, and support for Microsoft Dynamics 365 Business Central/NAV solutions and training and upgrades.

Over more than 25 years, Liberty Grove has assisted hundreds of customers with businesses ranging from small to mid-sized to Microsoft Partners in implementing, training, customization, and upgrading Microsoft Dynamics ERP solutions.

The organization is one of only a few companies worldwide that Microsoft recognizes as qualified to provide Business Central/NAV Upgrade Service Centers.

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Article written by Liberty Grove Software
Liberty Grove Software grew out of its predecessor company, Studebaker Technology, which in 1996 became one of the first Navision developer/resellers in North America (Navision was the predecessor to Microsoft Dynamics 365 Business Central/NAV). ​ As you can tell from our website, we focus exclusively on Business Central/NAV. Almost all our certifications, third-party add-ons, associates, services, and projects are Business Central/NAV-related. This is intentional because we want to offer only the highest caliber expertise to our clients, and we feel we can achieve this only if we devote ourselves to one ERP product.
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