Yield and Waste Management in Sage 300 ERP

By | February 15, 2013

Sage 300 ERP (Formerly known as Sage Accpac ERP) is one of the leading ERP system, known for its flexibility and user friendly interface, thus it has been used in varied Industries/Business sectors around the world.

In this blog, we would like to share an experience of a Customer in a budding Food Service Industries. A Company type where Business Model is Distribution based, where cost plays a major role in surviving years and primary function of an ERP. In such cases Yield management is one of the ways to identify and reduce wastage.

Considering the size and stage of establishment it is not desirable to procure a rigid process based solution which will complicate data entry for users. What we went in with was a simple set of core modules with basic processes which can be configured in such a way that the wastage’s can be tracked, reported, and in effect reduced by Kitchen Process monitoring or tweaking.

Let’s understand this by an example, say you have a Retail Chain of Food Joints where material procurement and processing is done centrally for specific region/area. This processing is in large quantities which if not monitored properly can result in processing waste amounting to 1 or 2% of the total production. Now imagine if this production is in hundreds of KGs per day per region.

To track this we can define different type of wastage’s for each Item (Raw Material) e.g. Peeling Waste, Chopping Waste, Cooking Waste, Perishing and configure as Optional Fields in Item Masters.

Since each of these waste types is associated with a type of process, we can define each process as an Assembly. Hence system has a record of ideal yield expected out of each process (Optional field), and then we can track what was the actual yield based on stock on hand at the location (after physical stock check).

A difference in the ideal vs. actual can be monitored closely and can be reduced by introducing optimized processes and management principles like Just in Time, Lead Time, Reorder Quantities and Material Requirement Planning.

As a result, with Sage 300 ERP you can lessen your wastage and yield more helping your organizations to grow laterally and reduce wastage cost at the same time.