Challenges in ERP Implementation for the Food Industry
Source: Äri-IT Autumn 2025
Authors: Terje Võrk, BCS Itera Consultant, and Liis Rättel, BCS Itera Business Manager
The food industry is one of the most demanding users of ERP (Enterprise Resource Planning) solutions. Producers dealing with perishable goods, strict consumption deadlines, and tight margins require a software system that not only supports the manufacturing process but also provides accurate cost accounting, quality control, batch traceability, and strict delivery scheduling.
1. Batch Traceability and Best-Before Dates (BBD)
The prerequisite for a successful food business is clear traceability of batches and best-before dates throughout the entire production chain—from raw material receipt to finished goods dispatch. The system must also allow for quick and convenient identification of the raw material supplier and batch, as well as the final product and its recipient.
Information must be accessible at any moment—whether for supply chain analysis, quality control, or product recalls, if necessary. Beyond tracking batch information, it is crucial to manage best-before dates not just for the final product, but also at the raw material and intermediate goods level, as these dates directly impact production decisions, product dispatch, and inventory planning.
In Business Central, BBDs can be defined, managed, and automatically carried through the entire process—from raw material receipt and production to sales shipment—according to the company’s needs. Retail chains often require product dispatch to adhere to specific shelf-life rules. To mitigate the risk of spoilage and prevent human errors, automated BBD-based product selection can be implemented in Business Central. The system also allows for real-time monitoring of which stock is nearing its expiry date and which inventory needs immediate realization.
2. Cost Accuracy and Narrow Margins
In the food industry, profit margins can fall below five percent (as per https://edepot.wur.nl/689558), making every cent in cost accounting crucial. Even a minor error in cost calculation can distort the profitability of an entire product group, especially when input costs—such as raw materials, energy, labor, and packaging—are constantly fluctuating.
Business Central enables the use of accurate and customizable costing schemes, including formula-based models, for cost management. Additionally, BCS Itera offers cost simulation functionality, which allows testing how different price changes (e.g., increase in raw material or labor costs) affect the calculated cost of goods sold (COGS). Simulations provide a quick overview of the need for product repricing and potential profit risks.
3. Integrations with Retail Chains – Telema, 4Doc, and EDI
Relationships with retail chains necessitate that the ERP solution can automatically exchange electronic orders, invoices, and delivery notes. Business Central fully supports this, particularly through the Estonian real economy package, which includes EDI, Telema, and 4Doc integration, and offers many other digital data exchange solutions.
Delayed delivery or non-compliance with requirements often result in penalties. The ERP must alert the user to critical deadlines in a timely manner and allow for dynamic rescheduling of delivery logistics to ensure delivery precision and avoid contractual fines.
4. Quality Control and Audit Readiness
In the food industry, quality assurance and audit readiness are legally mandated, requiring traceability, control points, and the capability for rapid data submission. Solutions can be created within Business Central to track certificates associated with goods, link them to specific batches, and automatically generate lab analyses during production or receipt. A certificate can be created from the results stored in the system and issued to the customer along with the sales document. Business Central helps manage these certificates: it notifies of expiration and, if necessary, restricts purchasing or sales activities, thus maintaining quality control and audit readiness.
5. Integrated System Usage and Data Harmonization
The ERP does not have to be the sole tool for every process. In the food industry, it is often practical to use specialized external solutions that offer better user experience and detail for specific industry needs—such as machine maintenance software, laboratory solutions, or real-time production monitoring systems. These solutions allow for in-depth process planning and management, while commercially critical information flows through the ERP. For example, only maintenance breaks affecting the production schedule—not all work order details—might be transferred from the machine maintenance system to the ERP, ensuring purposeful and efficient use of the ERP.
Business Central supports data exchange with various systems, such as logistics partners, warehouse automatics, production lines, and maintenance systems, providing a comprehensive overview of the production chain while preserving the advantages of each tool.
ERP as a Strategic Management Tool
Implementing an ERP in the food industry is a strategic step that requires a phased and user-friendly approach. Phased implementation reduces change fatigue, gives the team time to adjust, and allows starting production with a simplified assembly module, for instance, while maintaining the necessary financial overview. The foundation of successful implementation is thorough process mapping, user involvement, and a competent implementation partner.
Business Central, combined with BCS Itera’s experience, helps achieve control, clarity, and flexibility across the entire production and supply chain, providing companies with a competitive advantage.