6 Ways That Food Manufacturing ERP Can Help with Product Pricing

In the food industry, the keyword is quality, taste, and pricing. In this article, we will be focusing on the pricing aspect of the food manufacturing business. Food manufacturers always have to be careful about the cost as it affects the bottom line and the way they price products.

Pricing in the food industry is not only about the cost plus your margins but also about the way you position your product and how customers perceive the value of the product.

Our food manufacturing and distribution customers at To-Increase often seek a solution to their pricing conundrum. While they understand that pricing is not always about costs, managing all aspects like recipe management, supplier management, distribution costs, changing seasonal demands, storage, and distribution expenses can become a colossal task.

Our advice to them is to seek suitable food manufacturing and distribution software solutions that can automatically sync with their ERP to manage this situation.

How a food manufacturing and distribution can help

Predict and optimize

When you look at these factors over the years, you will be able to predict cost variations, adjust margins, and price scientifically.

Track and manage

When you track suppliers and vendors with these criteria, you can plan for shortfalls in terms of quality and quantity and prepare to deal with these conditions with a second-line of suppliers to make up for any shortfall.

Project and plan

You need to project these costs alongside formula changes, production costs, packaging, storage, and distribution. When you plan for the costs of this aspect using the food warehouse and distribution ERP solutions, you can price correctly.

Forecast and adapt

For instance, people prefer to eat lighter foods in the summer months whereas winters bring out the need for comfort food. Pricing appealing foods a bit higher as per the seasonal demands can help you increase your margins.

Anticipate and adjust

For instance, if there are sports activities scheduled, fitness will become a buzzword. And when the fitness wave hits the market, people will be reaching out for healthier options. If you can anticipate these trends and adjust your manufacturing accordingly, it can help you stay ahead of the curve.

Reduce wastage

Take the next step today!

Download the eBook to know how to Maximize margins in food manufacturing, which is a complex operation impacted by the weather, special events, and competitor activity.

Originally published at https://www.to-increase.com on December 19, 2019.

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