Debunking Myths: Organic Supply Chain Manufacturers Only Need to Use a Traditional Bill of Materials

Debunking Myths: Organic Supply Chain Manufacturers Only Need to Use a Traditional Bill of Materials

Insights from: Organic Supply Chain Management (Whitepaper)

Organic supply chain (OSC) manufacturers require a comprehensive ERP system that takes advantage of systems beyond a traditional bill of materials (BOM). This is due to the specialized industry these manufacturers fall under. 

OSC manufacturers need formulas that disassemble raw materials to produce co- and by-products. Then, these formulas are used by an advanced planning and scheduling (APS) system to model "what-if" scenarios.

The importance of modeling the costs is significant, since different cuts, packaging operations and fresh or frozen decisions must be represented in the APS tool. Conversely, a discrete-based ERP system using a BOM-based system will not be able to model these APS decisions because BOM tools are designed to assemble products rather than disassemble.

The nuances within the OSC manufacturing industry dictate the need for an ERP solution such as Microsoft Dynamics AX coupled with a skilled APS system.

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