SAP Business One for the Food & Beverage Manufacturing Industry

Batch & Expiry Management

In F&B, the questions of “who, what, when, and where” are critical. In cases of consumer complaints or product recalls, you must trace product origins within minutes, not days.

This is the strength of SAP batch expiry control and food traceability:

• Bi-directional Traceability: Track forward from raw materials to finished goods delivered to customers—or backward, from finished goods to the exact raw material batch used.
• Automated Expiry Management: The system applies FEFO (First Expired, First Out) or FIFO (First In, First Out) principles to ensure products with the shortest shelf life are sold first, minimizing waste.
• Stock Quarantine: Effortlessly isolate specific batches for further QC or hold them if issues are detected before distribution.

Quality Control & Regulatory Compliance

Food safety standards are non-negotiable. Compliance with regulatory bodies such as BPOM and international certifications (e.g., HACCP, ISO 22000) is essential for consumer trust and market expansion.

SAP B1 HACCP compliance supports you with:

• Standardized Quality Checks: Define QC parameters and procedures for every stage—raw material intake, in-process production, and finished goods.
• Digital Documentation: Record all test results and inspections digitally, eliminating paperwork and simplifying audits by BPOM or other certifying agencies.
• Corrective Actions: Automatically trigger workflows for corrective measures whenever non-compliance is detected, preventing recurrence.

Supply Chain & Distribution Integration

The F&B supply chain moves fast. A delay in ingredient delivery can halt production, and distribution setbacks may result in lost sales opportunities. F&B supply chain ERP ensures smooth coordination.

SAP Business One streamlines the entire flow:

• Supplier Management: Monitor supplier performance, manage contracts, and simplify purchasing.
• Warehouse Management (WMS): Optimize warehouse layouts, accelerate picking and packing, and gain full visibility into batch locations.
• Food Distribution ERP: Oversee delivery routes, track shipments in real time, and ensure products reach distributors or retailers in peak condition, on time.

Key SAP Business One Features in F&B

Here are the most impactful SAP B1 F&B features, consolidated into the ERP food module:

1. Production and Formulation:

• Flexible Bill of Materials (BOM) & Formula Management for product variations.
• Material Requirement Planning (MRP) to guarantee ingredient availability.
• Comprehensive Work Order Management from start to finish.

2. Batch Tracking and ERP Traceability:

• Automatic creation of unique batch numbers for every production cycle.
• End-to-end farm-to-fork traceability.
• Management of production dates, expiry dates, and shelf life.

3. ERP-Based Quality Control:

• Configurable QC procedures and parameters at every critical point.
• Recording of test results and issuance of Certificates of Analysis.
• Stock status management (e.g., unrestricted, quarantined, rejected).

4. Manufacturing & Distribution Integration:

• Real-time visibility of inventory across all warehouse locations.
• Sales management and order processing directly linked to production and shipping schedules.
• Integrated analytics and reporting to monitor sales, production, and financial performance.

Case Studies: Successful ERP in F&B

How does a SAP B1 F&B case study translate into real-world impact? Consider these two examples:

Case 1: PT. Cita Rasa Nusantara (Instant Seasoning Producer)

• Challenge: Difficulty tracking thousands of spice batches from multiple suppliers. Frequent waste due to ingredients expiring before optimal use. Inaccurate cost of goods sold (COGS) calculations due to price fluctuations.
• Solution: SAP Business One implementation focused on inventory, production, and QC modules.
• Results:
  • 18% reduction in raw material waste within the first year through automated FEFO.
  • Batch traceability improved from 2 days to under 5 minutes, speeding up quality issue responses.
  • COGS calculation accuracy rose to 99%, providing a stronger foundation for pricing strategies.

Case 2: CV. Segar Jaya (Juice Manufacturer)

• Challenge: Inefficient production processes leading to over- or under-production. Sales teams lacked real-time visibility into available stock.
• Solution: ERP F&B implementation of SAP Business One integrating sales, production, and distribution.
• Results:
  • 25% boost in production efficiency with advanced MRP features.
  • 40% reduction in distributor stock-out complaints.
  • Return on Investment (ROI) achieved within 20 months of implementation.

How to Begin Your SAP Business One Journey in F&B

Embarking on a digital transformation with SAP B1 F&B implementation may seem daunting, but with the right approach, it becomes structured and manageable.

Partnering with seasoned experts such as PT. Sterling Tulus Cemerlang, a trusted SAP B1 Indonesia F&B provider, is the cornerstone of success.

Key steps include:

1. Needs Assessment: Consultants analyze your workflows, identify weak points, and define ERP objectives.
2. Partner Selection & Planning: Choose an implementation partner with proven F&B expertise. Collaboratively draft a detailed project plan, including schedule and budget.
3. Module Design & Configuration: Tailor the system to your unique needs—production, inventory, QC, and finance.
4. Pilot Testing: Test the system in a single department or product line before full rollout to ensure flawless performance.
5. Go-Live & Training: After successful testing, launch company-wide with comprehensive user training for smooth adoption.
6. Post-Implementation Support: Your partner provides continuous technical assistance and updates for optimal system performance.