ERP Case Study_Fruit and Vegetable Beverage

1. Enterprise Resource Planning in Fruit and
Vegetable Beverage Manufacturing
Instructor name:
Hanan Alqhtani
Group ?
Course name : Enterprise systems for management
Section : 856

2. Introduction
 The fruit and vegetable beverage manufacturing industry is a vibrant sector that
blends agricultural produce with modern processing techniques. As consumers
increasingly prioritize health and sustainability, demand for these beverages has
soared.
 However, this growth is accompanied by unique challenges, particularly in managing
the variability of natural ingredients and ensuring consistent product quality.
 Enterprise Resource Planning (ERP) systems are crucial in this context, as they
integrate various business processes, enabling manufacturers to optimize operations,
reduce waste, and maintain high standards.

3. Industry Challenges
The industry faces unique
challenges such as variable
ingredient characteristics
and the need for consistent
product quality.
ERP Importance
ERP systems are crucial for
integrating various
business processes and
addressing these unique
challenges.
Lot Tracking
ERP systems must track
lot attributes like
Brix/percent solids and
pH/acidity to ensure
product consistency.
Purchasing Practices
The industry has unique
purchasing practices like
buying "pound solids" of
citrus, which ERP systems
must accommodate.
Grower Accounting
The complexity of
transactions with growers
requires ERP
functionalities for
managing settlements and
vendor-specific
information.
Kosher/Halal
Certification
ERP systems need to
indicate and verify Kosher
or Halal status of
products..
Private Labeling
ERP must manage private
label production and
different packaging
variations.
Expiration Tracking
ERP systems should
track expiration and
sell-by dates to
minimize waste.
Case Study Summary - 1

4. Customer
Specifications
ERP systems should allow
for manufacturing to both
company and customer
specifications, including
"best-fit" analysis for
product allocation.
Quality Control
ERP systems must support
standard quality control
measures and food safety
protocols like HACCP.
Allergen
Management
Production scheduling
within ERP systems
should optimize
schedules to manage
allergens and minimize
changeover times.
Landed Costing
ERP systems need to
include shipping costs in
material cost
calculations.
Case Study Summary - 2

5. SWOT analysis
S W
Strengths Weaknesses
Integrated Process Management :
Centralized data management enhances decision-
making and operational efficiency
Quality Control : Supports stringent quality control
measures, including HACCP, ensuring product safety
and compliance.
Cost Management : Provides cost-saving benefits by
optimizing resource allocation and reducing waste.
Flexibility : Handles unique industry requirements
such as variable inputs and complex grower accounting.
Complexity : ERP systems can be complex
to implement and require significant
training for staff.
Cost : The initial investment for a comprehensive
ERP system can be high.
Adaptability : Some ERP systems may not be
easily customizable to meet specific needs or changes
in regulations.
 This SWOT analysis highlights the critical role of ERP systems in addressing the challenges and
leveraging the opportunities within the fruit and vegetable beverage manufacturing industry.

6. T
Threats
 Cybersecurity Risks : As reliance on ERP systems
grows, so does the risk of cyber attacks, which can
compromise sensitive data.
 Regulatory Changes : Frequent changes in food
safety regulations can require costly updates to ERP
systems.
 Market Competition : Intense competition in the
beverage industry requires continuous innovation and
adaptation, which can strain ERP capabilities.
O
Opportunities
 Market Growth : Increasing demand for
healthier beverage options presents growth
opportunities for manufacturers using ERP
systems.
 Technological Advancements :
Integration of new technologies like AI and
IoT can enhance ERP functionalities and
offer competitive advantages.
 Global Expansion : ERP systems can
facilitate expansion into new markets by
managing multi-currency transactions and
compliance with international standards.
SWOT analysis

7. 01
02 03
Ingredient Variability
Natural fluctuations in raw materials can impact the
final product's consistency.
Regulatory Compliance
Adherence to food safety standards, including
organic certification and allergen tracking.
Cost Management
Balancing the costs of raw materials, production,
and logistics to maintain profitability.
Key Challenges Faced by Manufacturers

8. Enhance Traceability
Implement advanced tracking systems for ingredients from source to
final product, ensuring quality and safety.
Improve Scheduling
Utilize intelligent algorithms to optimize production schedules, reducing
downtime and allergen contamination risks.
Support Certification Processes
Provide features that facilitate the management of Kosher and Halal
certifications, including ingredient sourcing and equipment status.
Manage Expiry and Sell-By Dates
Integrate systems that track expiration dates, enabling manufacturers to
prioritize the use of ingredients that are closer to expiry.
01
03
02
04
To address the challenges outlined in the case study, ERP solutions should:
Proposed Solutions for Case Study Challenges

9. Tracking Issues in ERP for Success (Answer to Q1)
Lot Tracking
Manage variability of raw
ingredients by tracking lot
attributes like Brix, pH,
and acidity.
Allergen Tracking
Schedule production runs
to minimize cross-
contamination and
optimize changeover
times.
Kosher/Halal
Certification
Indicate and verify Kosher
or Halal status within the
ERP system..
Private Label
Management
Handle multiple
packaging variations for
the same juice product
under different labels.
Expiration
Management
Implement a First Expired,
First Out (FEFO) system to
use the oldest lots first
and reduce waste.

10. Organic System Plan and ERP Features (Answer to Q2)
Organic Certification Compliance
The ERP must support the creation and implementation of an organic system plan that details practices for soil
health, pest management, and livestock care.
ERP Features
01 03
02 04
Detailed Record-Keeping
Maintain records of all organic inputs and
outputs, from procurement to point of sale..
Traceability and Transparency
Track the origin of organic ingredients and
provide a clear audit trail for compliance
reporting.
Buffer Zones Management
Establish and manage buffer zones to prevent
contamination from non-organic substances.
Support for Organic Producers
Offer functionalities that cater to the specific needs of organ
fruit and vegetable beverage manufacturers, including
handling, processing, and distribution management.

11. Conclusion
 By integrating various business functions, ERP systems help manufacturers respond swiftly to
market demands and manage operational challenges effectively.
 Enterprise Resource Planning (ERP) systems are indispensable in the fruit and vegetable beverage
manufacturing industry. They provide a comprehensive solution to manage complex processes, ensure
regulatory compliance, and maintain product quality.
The Importance of ERP Systems
Lessons Learned
01
02
03
04
Flexibility and Customization
ERP systems must be adaptable to the specific
needs of the industry, capable of handling
unique requirements such as pound solids
purchasing and organic certification.
Data-Driven Decision Making
Access to real-time data and analytics is
crucial for informed decision-making
and operational efficiency.
Continuous Improvement
The industry is ever-evolving, and ERP
systems must be scalable and updatable
to accommodate new regulations,
technologies, and market trends.

12. Thank You!
Enterprise Resource Planning in Fruit and Vegetable Beverage Manufacturing