From Chaos to Clarity Automating Contract Manufacturing for Emerging Food & Beverage Brands

From Chaos to Clarity Automating Contract Manufacturing for Emerging Food & Beverage Brands

Launching a food or beverage product requires significant capital. Many manufacturers outsource production to contract manufacturers to reduce fixed costs and speed up time-to-market. However, this can lead to administrative errors. If you're manually managing production orders, component tracking, and contractor communications, there's a more efficient method available.

The Hidden Costs of Contract Manufacturing  

These hidden costs if not managed can quickly erase the margin advantages you expected from outsourcing:

Fragmented Production Orders
Production Orders are re-keyed across multiple systems allowing for clerical errors with inventory impacts.

Over/Under Production Variances
Without automated tolerances, each variance forces manual adjustment.

Accounts Payable Bottle Necks
‍Without quickly completed orders AP is unable to process invoices delaying vendor payments and straining relationships.

Limited Visibility
Operations lack real-time inventory accuracy, making demand-planning and cash-flow projections unreliable.

Missed Component/Output Reporting
Leads to unrecorded yield variances.

Cost of Integrating
The cost of developing and the tech-debt related to supporting an interface, can be significant.

A Better Way: Subcontracting Automation in Business Central  

Ternpoint Solutions has created and applied solutions to address the abovementioned issues. Automating processes and eliminating barriers to order generation and reporting can help avoid costly manual procedures.

One-Click Order Generation
Create a production order and it’s linked subcontracting purchase order in a single action.

Auto-Share Product Spec
Pushes the latest BOMs, packaging details and quality docs to vendors with orders to ensure they are producing to the correct specifications every time.

Remove Barriers to Output Reporting
Allow for over/under reporting without requiring manual adjustments.  

Remove AP Bottlenecks
Production managers can finalize orders quickly without manual intervention allowing AP to keep payable on schedule.

Integration
Use of standard integration tools or EDI to communicate.

Ready to Eliminate Subcontracting Chaos  

If clerical workload and reporting errors are eating into the savings of your contract manufacturing strategy, Ternpoint Solutions can help. We design end-to-end subcontracting workflows that let food-and beverage brands seamlessly run in Microsoft Dynamics 365 Business Central.  

Contact us today to future-proof your outsourced manufacturing strategy.

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