Catchweight Management Got You Stumped? Maybe It’s Time for an ERP
As a Food and Beverage manufacturer, you’re likely familiar with the term "catchweight" – and its related challenges. Individual product intricacies can present problems for meat, seafood, or poultry manufacturers. This is why increasing numbers of food and beverage manufacturers are turning to industry-specific enterprise resource planning (ERP) solutions for catchweight management.
ERP systems help businesses rely on real-time data and analytics to ensure precise weight measurements and accurate product labeling. This level of precision is crucial in meeting consumer expectations for accuracy.
Utilizing ERP systems enables monitoring resource use, optimizing production processes, and providing traceability data. ERPs, in turn, support sustainability initiatives and ethical sourcing practices.
ERP systems are crucial in the food and beverage industry. They significantly improve efficiency, accuracy, and compliance with regulations. They also play a vital role in effectively managing catchweight intricacies.
So, what exactly is catchweight?
Catchweight, also known as "variable weight," represents the precise weight of a single food item. Food manufacturers handle many items with variable weights, such as cheeses, meat, fruits, and vegetables.
These items are commonly sold in large quantities and are always priced based on weight rather than individual units of measure.
An example that can illustrate the idea is comparing two different packages of salmon fillets. Due to the irregularity in size and shape, as well as the variations in how the fish is cut and packaged, it is possible for two packages with the same number of pieces to contain different amounts of fish, as determined by weight. The prices of those packages should reflect the difference accordingly.
Accounting for Catchweight
There are two essential reasons why Food and Beverage manufacturers might consider accounting for catchweight. First, manufacturers must address concerns regarding pricing and customer satisfaction.
- Pricing
Knowledge of the specific weight of each piece of meat or any other food item with a fluctuating weight is essential to accurately determining the price. Applying a uniform weight and cost to all products of a specific variety would often disadvantage the seller or the buyer.
- Ensuring customer satisfaction
To maintain customer satisfaction and protect your brand reputation, manufacturers must avoid creating the impression that they would take advantage of a consumer in this manner. It's crucial to account for catch weight transparently to ensure your products' integrity and pricing. One practical approach is to display the actual weight on the package label, providing a clear justification for any cost differences.
Some food companies incorporate a safety margin for their variable-weight products to prevent potential issues, even if it means selling slightly heavier and slightly underpriced items. With the right technology, you can minimize or even eliminate this buffer.
Benefits of ERP Solutions for Effective Catchweight Management
ERP systems like DynamicsFoodERP from Liberty Grove, powered by Microsoft Dynamics 365, are essential for food businesses to manage and price their variable-weight products effectively. These systems offer a range of catchweight management functionalities crucial for success. They also provide unified databases that streamline the process of logging the weight of your goods. That ensures that the weight remains associated with the item throughout its supply chain journey, making tracking and management much more efficient.
With Liberty Grove ERP, you can streamline your weighing process by seamlessly integrating with connected scales in your facilities. It eliminates the risk of human error and frees your employees from the monotonous task of manual weighing. With the weight in the system, the price can be automatically calculated based on the model you choose, and the suitable label can be applied accordingly.
With this data capture process, your team can identify any irregularities outside the acceptable range for a specific product. This ensures that products that do not meet the required standards, such as a too-small chicken breast, can be promptly removed from the line and repurposed for other uses. Users have the flexibility to fine-tune this step even more by adjusting the tolerance percentages.
Furthermore, Liberty Grove’s ERP system includes a specialized catchweight module that allows for selling by the pound instead of by the case. This module also provides detailed data for analyzing the average weight of items delivered in specific lots or from suppliers. It effectively optimizes resource utilization and ensures strong financial performance.
An All-Inclusive Solution for Catchweight and Beyond
Manufacturers cannot handle foods with different weights the same way as other products sold by the package or individual item. Operating in the meat, seafood, and poultry segments and selling other variable-weight goods requires a deep understanding of catchweight and effectively addressing its challenges.
A more efficient approach to catchweight management in your facilities involves utilizing purpose-built technology. When relying on an ERP system to accurately record the weight of individual items and use it to determine the correct pricing, manufacturers know that their organization and the end consumer will benefit from fair and balanced results.
Liberty Grove’s DynamicsFoodERP has comprehensive catchweight management functionality and other features carefully crafted to align with industry best practices. With its focus on traceability, food safety compliance, and profitability analytics, this solution provides a strong foundation for any modernization initiative or digital transformation.
Implementing an ERP system can significantly benefit Food and Beverage manufacturers by streamlining catchweight management, which involves measuring and pricing products based on weight.
ERP systems enable businesses to adapt to changing consumer preferences by offering valuable insights into sourcing and production processes. They promote transparency and help meet the growing demand for various food options. A modern ERP solution provides modules that track and manage product quality at every production step.
Ready to Take Control of Catchweight?
Liberty Grove can help you use many tools and services to derive the most from your technology investment, improve your organization's ability to manage catchweight and raw materials, and increase your profitability.
Contact Liberty Grove for a complimentary consultation on how a Food and Beverage ERP can uncover hidden expenses and increase your bottom line.
Related reading:
Importance of Catch-Weight Management in the Food Industry – And How ERP Can Help Manage It
Streamlining Raw Materials in the Food and Beverage Industry
6 Ways a Food and Beverage ERP Can Uncover Hidden Savings
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.
Liberty Grove Software helps manufacturing firms compete by automating tedious operations with Microsoft technologies. Our extensive manufacturing knowledge has established us as the preferred Microsoft partner for assisting mid-sized manufacturers in increasing production.
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.