Farming and food production are among some of the humankind’s oldest activities. And now, companies in those sectors around the world are grasping the potential of ERP systems to make their processes more efficient and manage financial details that can make the difference between making profits or registering losses.

Adoption of the SAP Business One Abattoir ERP system has helped it resolve critical process issues, such as not being able to track the stage reached by a production order, and how long it had been there.

The company urgently needed to address the risks presented by inefficiencies such as lack of integration between the payroll and general ledger, which required highly time-consuming manual capture as did reports on production output.

The ERP system has provided integration of payroll and general ledger, turning postings to ledgers into an automated process. A warehouse solution enables inventory to be managed using various costing models while maintaining the master data, and a specialized abattoir modular solution has addressed the issue of production stage track.

Meanwhile, across the Indian Ocean in Sri Lanka, a newly-established dairy farming business has chosen SAP Business One to computerize all its business processes, including local and international purchasing, inventory management and deliveries. 

Watawala Dairy, with plans to develop a herd of 1,000 dairy cows, is working with local implementation partner PBSS Group, which has already assisted more than 160 Sri Lankan companies in adopting ERP systems over the past 15 years. 

Key takeaways:

  • ERP systems might, at first sight, seem to have little relevance to many of the activities undertaken by farming and food businesses, but poor process management can easily lead to avoidable losses.
  • Many companies have evolved from farming and food processing into more complex agribusinesses while continuing to use outdated and non-integrated financial and production management systems.
  • Companies entering the industry are seeing the value of implementing ERP systems at the outset to ensure that their business and production processes are harnessed to IT tools that facilitate management oversight of all activities in real time.