How Tailored

ERP Systems Are

Transforming Food &
Beverage Operations

Custom content for NexTec by studioID

Manufacturing and the use of Enterprise
Resource Planning (ERP) systems have a
long history of improving efficiency and
streamlining operations.

By automating and unifying various operational, supply chain, and “An ERP system built for food and beverage understands the
accounting functions, manufacturers can focus on improving and complexity of working in those regulated industries, understanding
growing their core business. Food and beverage manufacturers, when those checks need to happen, and can certainly give
however, are increasingly facing new challenges that are unique to manufacturers guidance and information back when they’re going
them, where a traditional, non-industry-specific ERP simply won’t through audits,” says Sharon Fuchs, solution architect manager,
cut it. NexTec Group.

From improving traceability in the food supply chain to complying The ability to have that information and data available in one
with changing regulations to keeping up with changing consumer platform rather than in pillared or disconnected systems—or,
demands, food and beverage manufacturers need a better option in some cases, the back of the warehouse in a filing cabinet—is
for managing their business. An ERP tailored to the industry’s moving the industry forward. Choosing an industry-specific
needs not only ensures that the product being made is safe but ERP will be pivotal for a food and beverage industry challenged
also considers the complexity of a highly regulated industry that by regulations, disconnected business operations, and a
demands traceability. waning workforce.

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Traceability is the
cornerstone of food and
beverage supply chains
The food and beverage industry entered a new era of food
safety in 2011 when the Food and Drug Administration
(FDA) introduced the Food Safety Modernization Act (FSMA),
a law intended to reform the safety of the country’s food
supply chain. The goal of the law is to prevent contamination
within the supply chain rather than responding to it after
the fact, forcing food and beverage companies to really
understand their supply chain and where their product is
coming from.

To do this and comply with regulations, those within the

industry must have visibility into their entire supply chain that
allows them to track and trace the movement of products
and ingredients. Manufacturers must be able to document
each part of the process, which not only allows them to
ensure safe manufacturing practices but also enables faster
removal of contaminated products in the case of a recall.

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With the FSMA’s final rule on requirements for additional
traceability records taking effect in January 2026,
the importance of traceability for food and beverage
manufacturers is more top of mind than ever. While many
manufacturers already have systems in place to aid in
their traceability efforts, they are often outdated, manual
solutions. And if they do have an ERP or software solution
in place, it may not be one designed specifically for their
needs. Implementing a food-specific solution is just a starting
point to compliance, with a host of untapped benefits at
the ready. With the right solution, manufacturers improve
overall efficiencies through greater visibility into inventory
and production, quality assurance, and the reduction of time-
consuming, manual processes.

“The Food Safety Modernization Act is making sure that

the supply chain is tight, that they’ve got the traceability,
that they’ve got the checks in place with production,” says
Fuchs. “Preparing for that, you can start to gain a number of
efficiencies as long as your ERP supports it.”

The Food Safety Modernization Act is making sure

that the supply chain is tight, that they’ve got the
traceability, that they’ve got the checks in place with
production.Preparing for that, you can start to gain a
number of efficiencies as long as your ERP supports it.”

SHARON FUCHS
Solution Architect Manager, NexTec Group

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Automating production and
inventory management
One way food and beverage manufacturers stand apart from
other manufacturers is that they are process manufacturers.
Once the ingredients needed for the end product are combined,
they can’t be disassembled like a bicycle. Manufacturers have to
take into account many different factors when assembling each
ingredient, and not just any ERP can navigate this.

“You need a system that understands the complexity of process

manufacturing,” says Fuchs. “Just because it’s an ERP system
doesn’t mean that they all manage that type of functionality.”

Food waste, for example, is an expensive problem for food

manufacturers that is also relatively preventable with the right
solutions. An ERP designed with the needs of food and beverage
companies in mind, such as Sage X3, can help in production
planning to create formulas that account for shrink and loss, aid in
quality tracking, and maintain the integrity of the traceability.

Say you need 100 pounds of carrots for a recipe. When you peel
a carrot, there’s yield loss in that peel. The right ERP can account
for a standard loss and recommend that you pull 110 pounds of
carrots instead, which ensures your recipe is accurate from the
ingredients you’re starting with. It can also help you recognize the
value of the byproduct in those carrot peels.

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“You can take that sort of byproduct, which was traditionally
waste, and convert that into a saleable unit that now has
revenue potential,” says Fuchs. “An ERP system could actually
help you manage your recipes based on the yield that you’re
expecting from the product that you’re using.”

For food manufacturer Brookside Flavors & Ingredients,

unnecessary waste is a real concern for its bottom line as
many of its ingredients have a defined shelf-life. Brookside
relies on Sage X3 to provide full, real-time visibility into
its inventory holdings to ensure the highest quality end
product with the least amount of waste. As the company
grew organically and through acquisitions, it knew it
needed a software solution to provide visibility across its
entire business—from finance to inventory management to
manufacturing and quality control.

“We also have insight into our production process that we

never had before,” says Dean Karkazis, director of operational
analytics and strategic initiatives at Brookside. “Previously, we We also have insight into our production process that
might have to call the shop floor to understand where in the we never had before. Previously, we might have to
cycle a particular order was. Now we have that information call the shop floor to understand where in the cycle a
available in Sage X3. It enables us to give customers more particular order was. Now we have that information
accurate information about their order status.” available in Sage X3. It enables us to give customers
more accurate information about their order status.”
FoodBusiness ERP, powered by Sage X3 and delivered
by NexTec, has helped leading plantain chip manufacturer DEAN KARKAZIS
ARA Food Corp implement highly accurate and detailed Director of Operational Analytics and
cost tracking. Strategic Initiatives at Brookside

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“We’re now able to track scrap and waste in ways that weren’t
feasible before,” says Marta De Varona, VP of Finance and
Administration, ARA Food Corp. “It’s been very helpful both in
honing our own practices and matching scrap and waste back to
the source of the plantains. We’ve identified suppliers from which
we receive a higher amount of scrap and waste and work with
them to help them improve their handling procedures.”

As the warehouse workforce continues to shrink, ERPs will

only become more essential in the everyday operations of food
and beverage manufacturers. Automating certain tasks helps
manufacturers standardize processes and maintain records, such
as monitoring and validating that inspections and audits are
completed. This lessens the reliance on your workforce while
improving efficiency.

“It helps ensure that those checks are being done; otherwise,
they’re doing it in Excel or on paper, and it makes it more difficult,
and it’s prone to error,” says Fuchs.

Milo’s Tea Company, which manufactures sweet tea,

implemented Sage X3 as part of a large-scale operational
automation effort to improve efficiency, benefiting from features
like time zone conversion and multi-currency support.

“Having to manage those conversions manually left a lot of

room for error, and with time zone conversion, it’s particularly
important if you’re producing a perishable product,” says Darlyne
Hagood, director of administration, Milo’s Tea Company.

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Accounting for catch weight is another difficult and costly The process can be error-prone and labor-intensive and, if
challenge unique to food manufacturers. Catch weight is used not managed correctly, can directly affect costs and customer
for items whose value is driven by their weight. For process satisfaction. An ERP with catch weight functionality should be
manufacturers, catch weight is used to accurately price products able to capture weight and price and track a product throughout
and maintain inventory levels. the supply chain. Creating a singular record of an ingredient
or product’s weight throughout its lifecycle allows for greater
For example, if you have 1,000 turkeys in a bin and a customer transparency and catch weight control.
orders 10, each will have a different value based on their weight.
The right catch weight management solution should be flexible
“I need to be able to capture the weight of each of those turkeys enough to accommodate multiple units of measure, such as by
so that my costs are right, my margins are right, my inventory is pallet, case, or piece.
right,” says Fuchs. “So not only is it sort of true enough pricing, but
it aligns with my inventory position.”

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Speaking a common language
Industry-specific features can help food and beverage “We knew we needed a technology partner that would be able to
manufacturers overcome many of the industry’s biggest challenges, understand our technology limitations and the learning curve that
but ultimately, working with a team that speaks a common our staff would need to go through,” says Hagood.
language can make or break an ERP implementation’s success.
Much like the ERP you choose for your business, a consistent and
This was crucial for Milo’s Tea Company, which acknowledged transparent team should set the tone for the goals you are trying
the technology learning curve its staff would go through when to achieve.
getting an ERP system off the ground. Understanding these
challenges, NextTec adopted an innovative way to keep their lines “Having a team that understands and can speak the language
of communication open and transparent. By integrating Milo’s makes ERP adoption much, much easier on the manufacturer,”
team into NexTec’s collaborative project management platform, says Fuchs. “It gives them the confidence that this product is the
the communication process became a partnership. NexTec’s right one for them, and you can speak to experience and what
service-driven approach fostered real-time support, efficient you’ve seen. Having somebody who can implement and who
collaboration, and clear communication, empowering Milo’s staff to understands your business really goes a long way.”
feel actively engaged throughout the implementation. This hands-
on collaboration set NexTec apart, creating a standout customer
experience that went beyond technology to truly meet Milo’s
unique needs.

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Make Food Better with NexTec
When it comes to implementing a food and beverage-specific ERP
system, experience matters. With seasoned consultants from coast to
coast, and a premium portfolio of innovative business management
solutions including Sage X3, NexTec Group is one of North America’s
largest and most experienced ERP consulting teams.

Combining deep technical knowledge and food industry expertise,

NexTec has been helping process manufacturers get the most out of
their technology investments for nearly thirty years. Our FoodBusiness
ERP solution, powered by Sage X3, delivers a single solution to manage
your entire business including production and operations, finance,
food safety, compliance, quality, traceability, and more. NexTec is a
Diamond-certified Sage X3 business partner.

Trusted by many of the most respected brands in food and beverage

manufacturing, our over 90% customer retention rate is a testament to
the lasting, impactful relationships we build with our clients.

Learn More Schedule a Demo

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