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Fraud and Catch Weight Management with NetSuite

Food fraud can occur in any food supply chain, but the animal product supply chains and end-of-code sectors (e.g., catering, retail, foodservice) are most vulnerable. Food supply chains are increasingly globalised. Food fraud is costing foodservice and hospitality businesses billions of dollars in lost revenue.

In food manufacturing, distribution, and retail, there are some aspects of inventory management and sales that are easy to track and manage. Jars, for example, hold a uniform amount, and there is no variability in either price or weight from case to case. For other types of meat and produce, variability in weight needs to be carefully managed. The variation may not be significant, but a few percent, either way, can add up and impact the bottom line for manufacturers and distributors.

Catch weight is essential to pricing and knowing the average weight of the manufactured, produced, or stored products. To help solve the challenge of weight variability, the food manufacturing, distribution, and retail industry have adopted the concept of catch weight.

Why is catch weight important?

Catch weight is a food industry term that helps manufacturers, distributors, and retailers determine the weight of foods that naturally vary in size, like cuts of meat and fish. When food manufacturers, distributors, and retailers can’t be precisely characterised into the regular units of measure like grams, kilos, blocks, or cases – catch weight helps to even out the discrepancies.

While catch weight management is primarily used in the food manufacturing, distribution, and retail industry, it’s also used in other industries that require a way to convert original units of measure to a different one so they can adjust the price based on the actual weight.

Catch weight products use two units of measure; one is an inventory unit, and the other is a catch weight unit. The inventory unit is the unit of measure in which the product is sold, received, transferred, picked, and shipped. The catch weight unit is the unit by which the item is weighed and then invoiced.

When is catch weight management needed?

Catch weight management is a necessity for food manufacturers, distributors, and retailers to reduce waste. However, any industry that needs to convert from a relative quantity to a line item price determined by the exact weight is a candidate for catch weight management.

Unit of measure conversion scenarios is not the only areas where catch weight management can come into play. In some cases, products that are purchased in the same unit as they are sold can be a problem because during processing or due to environmental factors, the unit weight changes. So, between the time the item is sourced and brought to market, the unit weight may decrease, having a detrimental effect on the profit margin. Grain, for example, suffers some shrinkage due to evaporation over a period when stored.

How can software help reduce waste and pricing errors?

While food manufacturers, distributors, and retailers have enterprise resource planning systems to help with inventory management, they lack catch weight functionality. Without it, managing the processes around catch weights is cumbersome, error-prone, and requires manual intervention. Inventory counts can also become out of whack, leading to inaccurate invoicing, margin loss, and sales tax issues.

With software that has catch weight management functionality, the food industry can get:

  • Support for products that differ in weight from piece to piece
  • The ability to sell by piece but priced by weight
  • Weight entered by piece, case, or in total for the invoice line and printed on the invoice in the same detail

With an ERP system, you can track the amount of products you have and how long they will last. The system can also analyze shelf life and keep your inventory in check. You can manage weight and measure both weight and quantity at different points in the company’s process to be well prepared for situations that may arise. With the advancements in the technology used by many warehouse ERP systems, NetSuite was able to add another feature to its system, called Catch Weight.

The process used by NetSuite for calculating a person’s catch weight involves using the current weight of each vehicle in their delivery record. That number is subtracted from the current average weigh of the trucks that they use in their daily operations. The difference that is found is a negative slope that represents the amount of weight a person’s truck is legally allowed to carry. This is the new feature that has helped NetSuite jump in to meet the new demands from warehouse operators around the country.

Another significant benefit of NetSuite Catch Weight Management (CMS) is how easy it is for an authorized representative to update the information in the database. All that it takes is a few clicks of a button to update the database, and an employee can immediately make a sales order or notify a driver of a pickup. An administrator can also update the database when there is a change in applicable laws in the area of operation, or if a new driver is added to the payroll. A person will not be allowed to place an order until the new driver has been approved. The system is designed to make things easier for the warehouse owners and for the drivers as well.

With the right software, manufacturers, distributors, and retailers in the food industry can avoid customer complaints. Previously, when a distributor, for example, priced products based on average weight, there would be times when items weigh under or over the average. If it’s under, the customer will feel they’re not getting what they paid. Not only will the distributor risk losing the customer’s business in the future, but they can also lose their good reputation.

One of the advantages that the NetSuite platform has over other systems is its ability to track the exact weight, which is necessary in some cases. An exact weight means that the goods that are being shipped will be handled according to their specific gravity. This is especially important for things such as boxes, crates, and other forms of packed goods. If you are using NetSuite, you will always be able to ensure that you’re taking the most efficient route for your inventory, because it will have the goods that are of the best possible quality, as well as their exact weight. The system will be able to determine the precise weight of each item, so you can be sure to always have the right amount of supplies on hand.

There are a lot of other benefits that NetSuite offers in terms of warehouse capacity, including variable weight items, order integration, order execution, and a whole host of others. However, one of the most important aspects of the NetSuite platform is its ability to handle variable-weight goods and services. If a company needs to ship goods in bulk, then they will need to be able to do so when they enter the NetSuite platform, because they won’t be able to do so if they enter their data using traditional methods. Many people are surprised to learn that NetSuite can handle the loading and unloading of many types of goods and services, including trucks, semi trailers, and other types of heavy equipment.

The NetSuite SuiteSuccess solution with catch management functionality helps food manufacturers, distributors, and retailers ditch their manual processes, spreadsheets, and basic financial management programs in favour of an integrated solution that is designed with their industry and the unique challenges of catch weight in mind.

Your business can finally get the functionality of the big companies with OneKloudX and NetSuite’s help. If you want to prevent food , then contact the OneKloudX team on info@onekloudx.com.au or 1800 155 683 to talk to a Senior NetSuite Consulting Team Member.

 

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