ERP seafood industry: solutions & selection criteria ERP suitable for business

However, many of the seafood business is still managed by Excel or software, discrete, making the data no contact information difficult to control wastage, cost and traceability. As a consequence, the cost is high, is difficult to meet the standard of export decline in competitiveness in the long term.

In this article Lac Viet Computing will analyze in a systematic way about the concept of ERP industry, seafood processing, common problems businesses are facing, as well as the role of ERP in the optimal operation and cost control to meet the requirements of traceability in the context of international integration increasingly extensive.

1. ERP fisheries, what is?

1.1. The concept of ERP solution for businesses seafood

ERP seafood industry is planning system enterprise resource designed or customized specifically for the business activities in the field of cultivation, purchasing, processing, storage and export of aquatic products. This system acts as platform admin center, help in business management throughout the entire value chain – from raw material input, production – processing, cold storage. Calculate the price of until financial accounting, traceability.

Other than the software management, ERP industry, seafood processing focuses on solving math operation overall ensure the data is the information consistent and updated in real-time between the parts.

The difference between ERP fisheries & ERP casual

ERP shared often only management at the basic level, as goods, the amount of inventory value. Meanwhile, ERP Solution for businesses seafood to handle the particularities of the sector. The difference is made in detail in the following table:

The main difference this makes ERP industry, seafood processing can not be applied machine from the ERP shared.

For example: A batch of shrimp from pond will go through the steps: harvest → processing → sorting → freezing → save, cold storage → export. ERP industry, seafood processing enables enterprises to:

• Recorded full information ponds, date of harvest and the quality of the input material
• Tracking attrition rates at each stage as peeled, sorting, freezing
• Inventory management, cold under the old order, the term of use and state of preservation
• Tracing backwards from the product directory on the right pond initially upon request check

Through which medium enterprises good control cost, and fully meet the demanding requirements of export markets.

1.2. Special administrator of the seafood business

When evaluating ERP fisheries, need comes directly from the actual operation of the industry. This is the value chain complex, high-risk characteristics, requires ERP system to control raw material, production, price, and traceability to ensure effective business, export capacity.

• Value chain long, many stages: in the seafood Industry have value chain with multiple stages related more closely. ERP solution for businesses fisheries to help connect real-time data, rectify the situation fragmentation, as well as support leadership decision making fast, accurate operational efficiency and cost.
• Material shrinkage, variable high – requires tight control: Raw material of the final product wastage, metamorphic should be tightly controlled in batches as well as storage conditions. ERP helps track inventory, age, cold storage, early warning of risks to reduce the losses and preserve the value of goods.

• Management details in batches – term use – size – freshness: mandatory requirements in the seafood industry from procurement to export. ERP solution for fisheries enterprise allows mounting code, track real-time data to help businesses meet the requirements traceability and inspection according to international standards.

• Depends strongly on the season – export market: seafood Industry depends on seasonality, fluctuations in the price of raw materials with strict requirements from the export markets such as EU, Usa, Japan. So, meet the standards of food safety as well as traceability has become mandatory conditions to maintain and expand market share directory.

2. The popular business are encountered

From actual survey, many seafood business still operate less efficiently due to the administration's core has not yet been solved. These restrictions undermine the competitiveness of export in the context requirements traceability, compliance with international increasingly rigorous, common, such as:

• Loss of raw materials in production, but difficult to determine the cause: is the problem popularity of seafood business. Due to the lack of data related information according to each stage, the business does not identify the points incurred losses lead to increased costs, eroding gross profit margin.
• Product prices accurate: due to costs in the fisheries sector allocation through many stages such as raw material, manufacturing, cold storage, logistics. When the data of purchase, production, as well as accounting no contact information, business valuation wrong, contract negotiation, poor guide to reviews deviation operational efficiency.
• Discrete data between the purchase – production – inventory – accounting: make data not in sync, report management, lack of timeliness. This impairs the ability to make decisions quickly and accurately in the essential activities such as purchasing, inventory and capacity expansion.
• Difficult to meet the requirements traceability when export: to be major barriers when exporting to the market such as EU, Usa, Japan. The management by paper records or systems, discrete make business difficult to provide timely data, potential risk of warning or refuse the shipment.

These problems showed the greatest limitation of the seafood business located in governance, contact information data. When the stitch operation discrete business difficult to control costs, meet traceability, maintain competitiveness of exports.

3. ERP fisheries solve the problem?

When evaluating ERP for seafood business, need to focus on the actual value in operation as well as sustainable development. ERP is not just digitizing tool that is platform management value chain will help control risks, optimize costs, meet international requirements.

3.1. Management input materials & procurement

Seafood business, raw material volatility, seasonal service, quality and supply. If there is no strict control, loss right from the start will become the burden of the cost.

An ERP system industry, seafood processing to help businesses recorded data of raw materials right from the procurement: from the source of supply, date of harvest, the quality, to the actual weight. This data is focused updates in real time, to reduce dependence on the record, as well as errors due to the human.

When good management inputs will help businesses:

• Reduce risk wasting materials don't control, because all plots were followed, as well as accurately collated.
• Support effective evaluation supply, choice partners purchasing the most beneficial for cost and quality.

According to an analysis of ERP in chain seafood, feature access in batches as well as alert the restaurant is about to expire to help reduce waste, increase operational efficiency in the management of cold storage.

3.2. Production management & processing

In the production process – processing, the rate of attrition is a major challenge due to arise through multiple stages. When data is recorded discrete, no related information make business difficult to determine the point of student attrition, as well as the causes that create hidden costs.

ERP seafood industry to track in detail each stage of production, recorded real yield under ca, passes than planned. This helps the executive committee:

• Get to know soon the problems arising in the production process, from which adjust the plan immediately.
• Performance comparison between the ca or production line to optimal resource allocation.

From there, the automation in the data connection help reduce the error due to input manually increase the performance of labor, from which frees resources for the tasks of higher value.

3.3. Inventory management, cold & term of use

Cold storage is a great asset, but the price if not managed properly. The difference between the actual inventory due to the manual process makes business difficult optimal rotation warehouse.

With ERP, information, inventory is updated in real time, accompanied by the automatic warning about term of use, shipment status and location in the warehouse. The system also supports the management principles such as first in – first out (FIFO/FEFO), helps to reduce the status of the overdue to get rid of. In addition to business:

• Increase accuracy in forecasting demand using cold storage, reducing costs of storage long day.
• Limited inventory devaluation, at the same time enhance the effective use of storage area.

So, apply management system inventory automatically helps reduce error rates, inventory and inventory costs overall, thereby improving financial results.

3.4. Calculate the price exactly in batches, according to the order

Calculate the price accurately is the foundation to strategic planning, sales price and contract negotiation, export. In the fisheries sector, the cost of not only the raw material, which also includes the cost of cold storage, logistics comply with export regulations. When data parts separate, the synthesis becomes inaccurate.

ERP fisheries gathered cost data from multiple sources allows for the comparison price according to the plan, the fact on each lot, or orders. This helps leaders:

• The selling price based on total cost, exactly.
• Evaluate the profitability in each market, from which strategic decision-making sales more effective.

The study of ERP in the food processing sector has shown that the integration of cost data, financial help enterprises are painting a clear profit to support investment decisions, optimize selling price.

3.5. Traceability & meet export standard

Traceability is required when business fishery products exported to the developed markets like EU, Us or Japan. This is not just elements of quality, but also the criteria of legal force business prove origin of shipment in every step of processing.

ERP solution for businesses fisheries help to record data from the input to when exported, according to the single batch, forming a “current events” track journey products. This helps:

• Willing to provide evidence data when the accrediting agency requirements.
• Reduce the risk of withdrawal of goods due to lack of information access.
• Increased reliability with foreign partners, strengthening the position directory.

According to the expert analysis, ERP, with the ability to access details to help businesses increase efficiency, supply chain management, compliance with food safety, reduce the risk of penalty or rejected shipments do not meet the standards of traceability.

In summary, ERP aquaculture not only solve operate every day but also create a platform reliable data for strategic decisions, the optimal cost is to improve international competitiveness. So many businesses considered ERP industry, seafood processing step is strategic in migration path of sustainable development.

4. The module's core ERP fisheries

When approaching ERP for seafood business need to identify clearly the subsystem core, and the actual value that each subsystem bring. This is not just the technology function, which is the platform administrator contact information, help control costs, risks as well as enhance competitiveness, special pre-transparency requirements traceability of the export market.

4.1. Purchase & procurement of raw material

Centralized management the whole process of raw material purchasing – the first step of the value chain the seafood industry. In the context of fisheries, inputs change according to the season, the uneven quality depends on the source supply. Businesses need a system clearly recorded information such as: suppliers, harvest day, the quality of the shipment, the actual volume and the purchase price.

Made this module helps businesses:

• Reduce risk, costs incurred due to loss of input, because any data that was recorded homogeneous, no longer depends on the recording crafts flaws.
• Support compare the effect of supply according to the supplier and seasonal from that decision purchasing reasonable.
• Create data platform to control the quality of raw materials right from the start, support traceability when necessary.

Data, recent statistics show that the majority of seafood business still recorded data acquisition craft, leads to false data, lack of control over raw material costs, reduced competitiveness on the international market.

4.2. The warehouse & shipment management

Inventory management with the products fresh or frozen, is the challenge of operating due to the perishable, requires strict term use. This module helps to track inventory consignment, location in warehouse and term use, support management principles such as FIFO (first in – first out) or FEFO (expired earliest – export ago).

Business get nothing when implementing this module:

• Reduce the status of overdue or losses due to false data inventory.
• Enhance the effective use of cold storage, thereby saving costs of storage.
• Support traceability shipment according to customer's requirements, accreditations.

A study on inventory management in food industry for see the applications warehouse management system automatically helps reduce false inventory at the same time improve rotation of inventory, thereby optimizing operating costs.

4.3. The production – processing

Support business planning and monitoring the production process – processing from input to finished products. In the seafood industry, producing not only is to turn raw materials into products, but also to tightly control the rate of attrition at each stage (pre-processing, sorting, freezing).

Enterprise value received when performing this module:

• Track productivity, attrition rates in shifts and production line, from that point determination congestion, improve the process.
• Provide data to help leaders adjust the production plan timely, avoid cornered stasis raw materials or lack of goods for export orders.
• Merge data between the parts to create consistency in the calculation of costs, productivity.

The number of chemical manufacturing processes help to significantly reduce errors due to data entry, craft, create favorable conditions for production planning according to the market demand.

4.4. The price of

Business calculate the cost of production as well as preserving detail in batches, stages and order. Here are key steps to business can make decisions about product pricing, contract negotiations as well as profitability analysis according to the export market.

When performing this module helps businesses:

• Product pricing based on cost data, real transparency to avoid false charges lead to a sale price lower than the price of capital.
• Compare prices between the planned and actual to assess the operational efficiency, productivity resources.
• Support cost analysis in each export market, thereby building strategy price match.

The industry analysis shows the price details to help businesses optimize costs, there are strategies price more competitive. Especially when competing in the international market requires high efficient operation.

4.5. Module – accounting & finance

Ensure all financial transactions – cost – revenue is recorded according to accounting standards in Vietnam (VAS), updated in real time. The sync financial data with other modules like purchase, production, inventory helps businesses have full view of the financial situation, cash flow.

Value when performing the accounting and finance:

• Reduce dependence on synthetic report craft, help leaders timely data for decision-making.
• Support effective management of costs, cash flow, financial planning, overall.
• Provide transparent data service financial partner, audit.

Integrated system of financial data to help organizations identify early trends, costs, optimal budget from which improved the capacity and financial sustainability.

4.6. Reporting & management for leadership

In the market situation, competitive quick-change, business leaders need to report multidimensional analysis to make the right decision the moment. This module provides the overview report, details of all operations: from production efficiency, cost, and inventory to sales and profits.

Enterprise value received:

• Decision support based on data consistency, timely, instead of guesswork.
• Increased ability to meet market volatility, requires manufacturing export analysis report trends.
• Help evaluate the effectiveness of business strategy, process improvement, continuous.

The organizations and enterprises are to find out information about ERP fisheries are recorded that the most important part of the system not just the recorded data which is to convert data into knowledge to operate, useful for leaders and team managers.

5. Selection criteria ERP fishery fit

For business learn ERP industry, seafood processing, the selection of the solution should not rely on the brand or the number of features. ERP is only really effective when tailored to the peculiarities industry, deployed in the actual operation of the business.

• Suitable peculiarities aquaculture in Vietnam: Vietnam's seafood Industry has peculiarities fresh ingredients, shrinkage high requirements traceability strict. So ERP to manage batches and each stage, ERP, shared to reduce the transparency data.
• Have the ability to customize according to the actual process: is a key factor when implementing ERP. The right solution should be flexible according to the model, how to operate your business. System keep abreast of fact, reduce the resistance of users to shorten deployment time and training.
• Easy to use, does not depend teams IT big: The majority of seafood business does not have the internal IT big. So ERP should have a friendly user interface, the process for importing data clearly, easy to use for parts such as procurement, inventory, production, and accounting.
• Unit deployment has practical experience in the industry: is the key element effective decisions ERP. Understanding operating fishery help advice the right process, forecasting, risk deployment, and improvement after go-live, to ERP actually become admin tools instead of just recorded the data.

The above criteria showed choose ERP the seafood industry is a strategic decision for the long term. The right solution should just meet the current business, just enough flexibility to support standardized management, control costs, enhance competitiveness and sustainable.

6. Lac Viet ERP – ERP Solution suitable for business, seafood

In fact ERP implementation in the seafood business, the problem does not lie in the “have ERP or not”, which is located in the ERP can keep abreast of the way businesses are operating or not. This is why many businesses whether investment in ERP but effectively bring not commensurate with expectations.

6.1. Overview of SureERP

SureERP is ERP solution due to Lac Viet research and development, aims to support Vietnamese enterprises standardized management as well as digitization operation for a fact, feasible. Instead of building a complex system, god of technique, SureERP is driven by three core principles:

• Comprehensive: Covering the full range of business admin core of the business, from purchasing, inventory, production, price to financial accounting and management reports.
• Flexible: allows customization according to the scale model produced peculiar to each sector, especially the industry has high volatility, such as fisheries.
• Friendly: the interface, the process used is designed in accordance with user service does not require businesses to have the team for IT to operate the system.

With this approach, SureERP not only play the role as software recorded data, which becomes the platform operation management. To help businesses better control of costs, risks in operational efficiency.

6.2. Why SureERP in accordance with the seafood industry?

The fisheries sector has the peculiarity that is not ERP solutions shared would also meet, such as management of fresh ingredients, natural shrinkage, manufacturing batches, and requirements traceability when exporting. SureERP fit the ERP industry, seafood processing thanks to focus properly solve this problem.

SureERP allow to customize the process according to the actual ever seafood business. The business may process design, purchasing, processing, storage and export right with the way we're operating, instead of having to change the process to “match software”.

System management support detailed in batches, cold storage, and each production stage. This helps businesses:

• Accurately track wastage of raw materials through each stitch
• Inventory control according to the old restaurant, term use
• Easy traceability when the client or agency check required

SureERP not imposed governance models as rigid as many ERP imported. With the seafood business scale, medium & large in Vietnam, this flexibility helps ERP fisheries go into actual operation faster, reduce resistance from users to bring the effect more obvious after deployment.

6.3. The analysis SureERP business support aquatic

SureERP provides a full range of the core to form an ERP solution for businesses fisheries complete, including:

• Management purchasing & procurement of raw material: recognition, control raw material in batches, supplier, time of purchasing, quality.
• Inventory management & traceability: track inventory in detail in cold storage, shipment term use, support access reverse when needed.
• Production management – processing: tracking productivity, wastage production schedule according to each stage.
• The prices: Calculate prices of reality in production, orders and export markets.
• Financial accounting according to VAS: Recorded, aggregated financial data comply with accounting standards in Vietnam.
• Reporting system management & BI: Provide reports, multi-dimensional support leadership decisions based on the data timely and accurate.

The analysis this is the information on a unified platform, helping businesses avoid the situation of discrete data between the parts – a common problem in many seafood business today.

Lac Viet ERP solution is developed for business in Vietnam, helping the seafood business step by step standardized processes, better control costs, enhance competitiveness in a sustainable way. This is the option worth considering for the organizations and enterprises are to find out information about ERP fisheries desired ERP implementation towards efficient, realistic and long lasting.

ERP fisheries, not just technology solutions, which is management platform to help businesses control the comprehensive value chain, from raw material input to finished product export. When data is contact information businesses can reduce losses, calculate the right price, and actively meets the requirements traceability increasingly demanding. Investment in ERP in the right direction will help the seafood business improve operational efficiency, decision-making based on data, capacity building sustainable competitive in the context of deeper integration.