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Produce Packer & Shipper ERP: Cost Benefit Analysis

It is no secret that in the produce industry, operational efficiency is what differentiates the best from the rest. This is why produce ERP sells like hot cakes among the produce packers and shippers and has its weight worth in gold. For, more and more produce packets and shippers are getting attracted to the discipline by the desire to integrate and consolidate management information and monitor real-time data at all times.

For any business investing in an enterprise resource planning (ERP) system, pricing is an important factor. Produce ERP prices vary depending on three factors:

  • Size of the firm
  • Customizations needed
  • ERP partner chosen

A detailed version of the produce ERP cost structure includes:

  • Acquisition
  • Customization
  • Testing
  • Upgrades
  • Personal Development

To give produce packers and shippers a preview of how these factors affect costing let’s look at the cost structure of these food ERP service providers:

  • WorkWise estimates that the total cost of selecting and implementing an ERP could fall anywhere between $75,000 to $750,000 for a small to medium-sized business.
  • ProcessPro: ProcessPro offers a robust ERP solution with full manufacturing, inventory and financial integration, developed as a complete system from beginning sales order entry through the manufacturing and accounting process.
  • Subscription plan: $3000 per user (annual subscription)
  • Epicor: Founded in 1972, Epicor provides enterprise resource planning (ERP). Epicor provides the plan of $645 per user (annual subscription)
  • Deacom: Established in 1995, Deacom, Inc. produces ERP software for mid-to-large sized manufacturing and distribution companies and offers a subscription plan of $7000 per user (perpetual license)
  • iNECTA: Established in 2001, iNECTA is a Microsoft Gold Certified partner. Pricing for the iNECTA Food solution for Produce. The Midsize licensure and implementation pricing module offer everything a customer requires right out of the box with the added bonus of iNECTA EDI, Power BI and Training provided by the team of ERP consultants.

Having been a part of the business for a decade, iNECTA provides the following produce packers/shippers ERP subscription plans:

  • Small size (5 users or less): $125/month/user
  • Medium size (5-15 users): $165/month/user
  • Enterprise (15 or more users): $215/month/user

With three different subscription plans, iNECTA offers produce packers/shippers flexibility to choose their plan based on their need. Thus, it caters to small and large firms alike. Being a gold certified partner i.e. meeting Microsoft’s qualifications makes it a great fit for produce packers/shippers.

Potential benefits of ERP initiatives

ERP processes can offer a number of benefits to organizations, including:

  • Streamlined procedures – the use of ERP solutions and streamlined resource management processes can help simplify procedures, helping to reduce re-work and manual handling costs.
  • Greater intelligence – decision makers can monitor performance in individual departments and across the organization as a whole, and consider the inter-dependence of different areas. Integrated data supports effective decision-making processes.
  • Increased productivity – manual tasks can be automated, helping to increase speed of delivery, boost accuracy and reduce the pressure on employees. Key workers can focus on value adding tasks, enabling them to boost productivity and output.
  • Greater reliability – ERP systems can flag up inaccuracies and errors, allowing decisions to be based on more relevant and accurate data. As such, firms are able to reach the most desirable outcome more frequently, which should help achieve efficiencies and boost customer engagement.
  • Improved reporting – benchmarking is easier, as ERP systems make it simpler to record and report data across a range of tangibles. Monitoring business processes becomes easier, enabling earlier troubleshooting.

With rising competition and ever demanding customers, produce packers and shippers need to monitor, control and regulate produce at all times. Grievance handling and customer relationship management is what helps produce packers and shippers build and differentiate their brand and this is what ERP brings to the table. With customer satisfaction being the name of the game produce ERP is how produce packers and shippers win.

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