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11i EBS and Food Industry

Posted on January 14th, 2007 by anand |Print This Post Print This Post |Email This Post Email This Post

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Could you imagine what kind of ERP system required to such kind of industry whose line of business is these products line? 

  • Meat and Poultry
  • Dairy
  • Grains
  • Processed Products
  • Fruits and Vegetables
  • Sea Food
  • Grocery
  • Beverages Alcoholic
  • Beverage Beer
  • Beverage Soft Drink
  • Beverage Water
  • Beverage Sports Drinks

I know this is bit tricky to answer. Though I have been never exposed to Food industry yet, but as EBS consultant working for such a long time, can surly consider Oracle Apps 11i as a complete product to cater this segments. The reason for bringing this topic here just because of a simple reason as sometime back I get across one the article written by Thomas R. Cutler, where he put some thoughts on the Potential usage of ERP product with Floor shop automation. What we understood, food and beverage industry require an ERP system that is flexible to respond to today’s demands and tomorrow’s changes, because of there uniqueness, rapid changing nature of there market. Sudden change in strategy, manufacturing process may require special attention for shop managers for such kind of industry, therefore a complete integration with Shop floor with ERP based application is one of key area. 

In his paper he did mention some tight system automation requirement with ERP system. Though he considers Food industry has of idiosyncratic nature of food manufacturing process. Thus the shop floor and some of area involved the process can be tighten which add-on the cost of product. Here are some of the area where he considers needs a nut and bolt requirement:

  • Online tracking of engineering change orders with electronic routings for approvals.
  • System generated BOM's and routings for configured products.
  • System generated production schedules from MRP module.
  • Automatic yielding for finished goods and BOM components/ingredients.
  • Where used and mass replace capabilities.
  • System generated work orders for make to order environments.
  • Fully attributed inventory from order entry through production and shipping.
  • Online order promising by exploding the multi-level BOM, reviewing BOM stocking levels, and production space.
  • Online messaging for production managers on plant floor exceptions.
  • Integrated dashboards for management's KPI's.

Thus it is important to find balance between this industry sector nuance and a Basic ERP system . he too agreed that basic ERP functionality  are often lacking when the focus is too heavily on the bells and whistles. In his paper he strongly agree by Gill idea that he felt , “Many vertical ERP applications in the food sector lack strong financials and must integrate with bolt-on third party systems.” The ERP functionality should also include complete multi-company, multi-currency, and financial reporting capacity.

Here are some of potential area and functionality he mentions for ideal ERP system:

  • Fully EDI enabled which offers automatic order entry, acknowledgements, ASN submittal, invoicing, purchase order transmittal, vendor acknowledgements
  • Automatic check input and matching for bank deposits
  • System generated forecasts based on sales history
  • Online system (MRP/DRP) generated requisitions with purchase order creation and submission
  • Online messaging with exception reporting
  • Fully barcode enabled system
  • Directed put away, pick, and restocking locations in warehouse
  • Various picking methodologies for complete optimization of the warehouse
  • Centralized purchasing and payment for multiple facilities, divisions, or companies
  • Fully integrated e-commerce
  • Integrated to Microsoft Outlook
  • Fully integrated CRM

Apart from this there are some other areas which need a flexible move as required as some of changing business need to satisfy these requirements:

  •     Regulatory Compliance – Reporting to support FDA, Bioterrorism Act, 702 and other legal requirements
  •     Retailer Mandates – RFID, promotions, packaging requirements, private-label brands
  •     Consumer Demands – Higher quality, more convenient products at lower prices Also other area like grower accounting for Contracts, pricing, settlement, payment and grower Management for Harvest management, farming activities, receipts can be add-on requirement in food industry

E-Business Suite for Food & Beverage

EBS suits does have a solid functionality to cater the food industry segment, Whether it is baking mix manufacturer, nut processor or other type of Food and Beverage producer, Oracle E-Business Suite provides specific food and beverage feature and functionality such as:

  •  Process Manufacturing – Enables traceability throughout the entire manufacturing cycle with recipe management, production scheduling, process execution and inventory management.
  •  Trade Management – Organizes and tracks marketing and sales trade promotions, deductions, and budgets.
  • Food Safety and Compliance –Supports full accountability tracking at each step of the process.

    Also, I would like to share some of EBS 11i.10 enhancements like Scarce inventory allocation, lot/serial receiving, better controls for Food and Drug Administration (FDA) 21 CFR Part 11 compliance and an improved channel/partner management dashboard has been targeted for faster communications.

    This is what Oracle EBS suites provides. This is datasheet provided by oracle of this industry segment. http://www.oracle.com/solutions/mid/collateral/consumer-products.pdf

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Posted in EBS Suite, Misc | 2 Comments »Email This Post Email This Post | Print This Post Print This Post

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2 Responses
  1. Praveen Says:

    Hi,
    I am creating a sales order line with ATO Items, I am running the ‘Requisition Import’, there by I am able to create a requisition in PO, there by I am able to create a PO. But I want the connection b/n PO and OM (tables). FYI this is not a dropshipment Order.

  2. Sanjit Anand Says:

    check the ER diagram in this post

    http://www.oracleappshub.com/om/understand-drop-shipment-in-order-management-part-ii/

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