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AFS ERP Enables Quality Meats to Improve Margins During Periods of Market Fluctuation

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When market prices for meats and seafood took a beating in the mid-2010s, many of the players took it on the chin as far as maintaining acceptable margins. Quality Meats and Seafood in Fargo, North Dakota also felt that pressure. However, their use of the robust functionality of AFS ERP gave them a competitive advantage and enabled them to grow their margins during this difficult period. 

They use the AFS ERP production module to track their meat cutting operations which allows them to closely monitor both the inputs and the outputs of their processing activities. This has produced much more accurate costing values for each cut of meat which they in turn use to price it a certain way.  This has allowed their gross margins on steaks, a major profit center, to increase by nearly 40 percent.

Their operations have also become more streamlined due to the standard inventory tracking capabilities within ERP. Their buyers are able to see detailed history of all their products which enables them to track inventory levels, velocity of movements and past sales histories. This has given them better information to plan out their buying activities which reduced the amount of inventory they needed to keep on hand by 15 percent.

“The ERP system has given us functionality, reporting, and tracking capabilities so we can better manage our production processes, keep inventory levels more in line with demand and manage by exception with the many reports available,” Quality Meats and Seafood CFO Blair Kemmer says. “Our company is more profitable today than when it was when we implemented ERP and we can attribute some of that growth directly to the ERP solution.”

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