Managing Food and Beverage Contract Manufacturing with Dynamics 365 ERP
When you outsource food or beverage production to a regional manufacturer or are on the receiving end of a contract with a bigger manufacturer, efficient contract tracking is vital for managing the relationship. Supplier agreements, distribution contracts, compliance requirements, and pricing structures can quickly become confusing without an ERP to manage your documents.
Fortunately, Dynamics 365 food and beverage manufacturing software solutions make it easy to draft, track, and approve contracts from our administrative portal.
Client Portal Features with Dynamics 365 ERP
Stoneridge Software’s experts can implement the Dynamics 365 ERP solution–Business Central or Finance and Supply Chain Management (FSCM)–that best meets your needs to offer a range of features to simplify the contract management process and allow you to evaluate how future deals could affect sales revenue. Key options include:
Centralized Contract Repository
- Store and manage all supplier and distribution contracts in one secure location.
- Easily search and retrieve contracts using metadata and keyword searches.
Version Control and Document Management
- Track updates to specifications and ensure that changes are documented and approved.
- Automatically notify parties of changes so everyone is using the most up-to-date version.
- Maintain historical records of previous versions, making a clear audit trail.
Automated Contract Generation
- Use templates to generate contracts with pre-defined terms and clauses.
- Reduce manual errors and maintain consistency in contract language.
Real-Time Collaboration and Approvals
- Collaborate with internal stakeholders and external partners on Microsoft Teams.
- Automate contract approval workflows to reduce bottlenecks.
- Get instant notifications for pending approvals or updates.
Supplier and Vendor Management
- Maintain supplier profiles, certifications, and compliance documentation.
- Track contract performance, including delivery timelines and quality metrics.
- Monitor supplier compliance with industry regulations and internal standards.
Pricing and Discounts Management
- Easily manage volume-based pricing, seasonal discounts, and promotional agreements.
- Automate calculations for rebates, chargebacks, and allowances.
- Update contract terms in real time to reflect changes in pricing structures.
Renewal and Expiry Notifications
- Set up automated reminders for contract expirations and renewals.
- Proactively manage contract renegotiations and amendments.
Analytics and Reporting
- Gain insights into contract performance, supplier reliability, and fulfillment metrics.
- Monitor spending against contract terms to detect anomalies or overcharges.
- Generate reports for audits and regulatory compliance.
How Dynamics 365 ERP Helps with Specification Management
Dynamics 365 ERP solutions help create, maintain, and track detailed product specifications, including ingredients, recipes, nutritional information, packaging, quality standards, and compliance regulations. Client specification control can include:
Clear Specification Agreements
Templates can create contracts that clearly define product specifications, quality requirements, and compliance standards. Including detailed specifications in contracts helps avoid ambiguity, ensures consistency, and sets expectations upfront.
Compliance and Quality Assurance
Customizable contracts allow you to embed regulatory requirements (like FDA or HACCP safety standards) and add penalty clauses for non-compliance or subpar quality, encouraging accountability. You can also maintain up-to-date certifications and documentation linked to contracts.
Risk Mitigation and Issue Resolution
You can automate compliance checks and set alerts for action items, such as specification deviations or potential contract breaches. You can also schedule risk assessment checks and automatically flag contracts that pose compliance issues.
Pricing and Cost Management
Pricing can be automatically updated based on changes in ingredient specs or quality levels, helping align product quality with pricing agreements.
Dynamics 365 Multi-Client Production Management
Key benefits of using Microsoft Dynamics 365 as the bedrock of your food and beverage ERP include:
Client and Brand Segmentation
You gain the ability to manage multiple client accounts under a single system while maintaining separate production processes, specifications, and quality and reporting requirements for each client.
Centralized Production Planning
Dynamics 365 ERP solutions make it easy to plan and schedule production runs for different clients simultaneously, optimizing resource use while minimizing conflicts between client orders. There are also master production schedules to coordinate production across various facilities.
Order and Inventory Management
Dynamics 365 ERP systems handle client-specific, customized, and special orders while automating stock allocation to meet client demands efficiently. They can also track the inventory of raw materials and finished goods per client or product line.
Financial and Contract Management
Easily automate each client's billing, invoicing, and contract compliance and generate financial reports specific to individual clients. You can monitor profitability and cost allocation on a per-client basis, comparing it to the entire production line to visualize costs.
Production Scheduling
Dynamics 365 food and beverage ERP systems make it easy for small and medium-sized businesses to meet demand. Here are just a few ways Microsoft’s contract systems can optimize your production scheduling:
- Store and manage client-specific product specifications, formulations, and standards.
- Collect real-time raw material data to maintain optimal inventory levels.
- Monitor production progress, quality metrics, and cost analysis for each client.
- Update specifications without disrupting ongoing production.
- Perform yield optimization calculations for more efficient use of raw materials and less waste during manufacturing.
- Draft employment contracts for optimal staffing to maintain consistent production levels.
- Easily analyze production efficiency and detect issues early.
Quality Standards
Quality assurance is essential to maintain product quality, meet regulatory standards, and ensure safety. Dynamics 365 contract management software can:
- Maintain complete traceability for ingredients and finished products across multiple clients.
- Track batches and lots from raw material receipt to final product dispatch.
- Generate client-specific dashboards and KPIs to track performance.
- Automate quality checks and compliance validation during production.
- Comply with industry regulations by keeping accurate records for each client.
Dynamics 365 Contract-Specific Quality Parameters
Customization options for food and beverage ERP systems are limitless, but Dynamics 365 includes some industry-specific quality parameters such as:
Ingredient Quality
- Purity and Composition: Minimum percentage of pure ingredients (e.g., 99% fruit pulp).
- Moisture Content: Ensuring moisture levels are within acceptable ranges.
- Nutritional Values: Calorie, fat, protein, and carbohydrate content as specified in the contract.
- Additives and Preservatives: Permissible limits for additives, colorants, and preservatives.
Physical and Sensory Quality
- Appearance and Color: Visual standards for uniformity in color and texture.
- Taste and Flavor Profile: Specific taste notes or flavor intensity.
- Texture and Consistency: For products like sauces, spreads, or beverages.
- Foreign Matter Control: Zero contaminant tolerance (e.g., glass, metal, or foreign objects).
Microbiological Quality
- Microbial Limits: Maximum allowable counts of bacteria, yeast, or mold.
- Pathogen Testing: Absence of harmful bacteria like Salmonella or Listeria.
- Shelf-Life Testing: Ensuring product stability over a defined period.
Packaging and Labeling Quality
- Packaging Integrity: Testing for leaks, damage, or faulty seals.
- Label Accuracy: Compliance with regulatory labeling requirements and client-specific branding.
- Barcode and QR Code Verification: Ensuring correct coding for traceability.
Talk to Stoneridge Today About How Dynamics 365 ERP Can Help with Food and Beverage Contract Manufacturing
As a certified Microsoft Solutions Partner for Business Applications, we have successfully deployed business software for countless manufacturing companies like yours. We help you fully customize your Dynamics 365 ERP solutions and provide training and support after implementing your system. Talk to the Stoneridge experts today.
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