You’re ready to scale your food and beverage business – and there’s no better way to do that than to use a food ERP. In order to be as effective as possible, we recommend exploring the different types of ERP before making your final choice of platform.
Below, we’re digging into the different kinds of food ERP choices, the benefits of each food manufacturing software type, and tips for implementation to help you get the results you need more quickly.
What are the three main types of ERP?
There are several different types of food ERP, each with unique structures and benefits. The use of the term “ERP” is synonymous across every type we’ve listed below, representing the organization and workflow efficiency that enterprise resource planning software (ERP) provides.
We’ve summarized the three main types of ERP below, giving you insight into which may be most effective for your current stage of business.
1. On-premise ERP
On-premise ERP offers you the same functionality as your average ERP software does. The main difference is that the software is housed within in-house servers that are on-location for your enterprise. This approach has pros and cons, as you’ll find with each type of ERP management.
This type of food ERP allows you to have greater control of the security used to protect and defend your infrastructure. This is an especially competitive choice if you’re concerned about data protection or if you’re dealing with especially sensitive material and you don’t want to rely on a third-party vendor.
However, there are a few drawbacks to this management choice for your food manufacturing software. There are generally higher costs associated with this management type, as you’ll have to pay for the hardware and installation process. Updates may come at an additional cost, and you’ll spend more time engaging in hands-on management – which takes time away from other high-level tasks.
2. Cloud ERP
Cloud ERP has made waves in recent years, becoming one of the most competitive options available for your food and beverage software needs. This is largely due to its easy implementation process and limited maintenance that must be done after installation is complete. They are easier to manage and provide true-time organizational data across your enterprise, offering more opportunities for refinement, innovation, and progress.
Generally, cloud ERP solutions are less expensive than on-site plans, as you won’t have to pay for the actual physical hardware elements associated with your program management. You ought to, however, ask for any associated licensing fees or seat fees to stay on top of your budget and expenditures, ensuring that you’re walking away with an option that’s financially feasible and sustainable in the long term.
As with any ERP type, there are considerations to make before choosing cloud ERP for your food manufacturing software of choice. Security issues remain at the top of the list of possible drawbacks, as you’re relying on a third-party provider to manage your data control and safety. You’re also relying on an outside connection to access your data, which allows you to access remotely from anywhere in the world – so long as there aren’t any internet outages or failures in your region. If you are facing connection instability, cloud ERP may not be your best choice.
3. Hybrid ERP
Hybrid ERP incorporates elements of both cloud ERP and on-premise systems, providing you with full functionality at a fraction of the cost. It’s reliable, agile, and effective, making it a top choice for food and beverage businesses around the world.
As there’s less physical hardware on-site, you can expect those associated costs to drop. You also may have more flexibility for backups with your on-premise tech, reducing your need for a stable internet connection and giving you options in the case of an outage.
However, updates may take additional time, as they’ll be fractional and multi-faceted. There also may be a greater learning curve for your team members which may incur additional costs and lost time.
How can I maximize my food ERP investment?
Ultimately, you want to maximize your investment in your ERP of choice – and that means being efficient with your method of implementation and use. Here are our top tips for easy implementation and onboarding:
- Define your phases (and plan accordingly): Breaking your rollout into phases helps you to better manage and anticipate your team’s needs. You can estimate lost time or additional costs and work proactively rather than reactively to mitigate your risks and inefficiencies.
- Communicate effectively: No matter which choice of ERP you go with, effective communication is key for a successful rollout. Find ways to help your team members break through barriers ahead of your disbursement date.
- Test and refine: Most food ERP choices come with different personalization options and the ability to test and refine. Don’t be afraid to lean into these as you create a custom solution for your food and beverage business.
Connect With Inecta for Custom Food ERP Solutions
Looking for food and beverage software for your food business? Connect with the team at Inecta today. We’ve led the industry for over 20 years in the food ERP space and have partnered with Microsoft to provide you an even more congruent and competitive solution for your food ERP needs. For more information and to get started today, please visit our website. We look forward to serving you.