Ending Your Accountability Nightmare in Food Distribution

See if this story sounds familiar. You sell a product that varies in weight but is also sold by weight. That means when it’s packaged, the overall amount of product in each package can vary, too – sometimes by a lot! Now you are selling shipments labeled as one price but worth another.

If you work in food distribution and don’t have an adequate inventory tracking solution in place, this could be you! Without tracking catch weights on individual packages, you may continuously be overcharging or undercharging your customers.

What’s the problem with this situation? Let’s take a look at how each scenario can hurt your business.

Undercharging Customers

Suppose that the discrepancy between the amount shipped and the amount billed favors your customer. Firstly, if no one catches it, the amount you should have charged the customer vanishes, which tightens your already slim margins of just 3-5%.

Now, what if, instead, the customer detects the difference themselves? You have directly placed them in a moral dilemma they may not have wanted to be in. They must decide if they will accept the overage or approach you to let you know.

That’s all very well, then, you might say. If the customer offers to pay the difference, isn’t that a win? Not really, because now your billing team needs to re-invoice the customer and go through your payment process again, and these resources are much better spent elsewhere.

Overcharging Customers

The reverse situation, overcharging your customers, can create even bigger headaches:

Even if the customer never discovers the discrepancy, you could be hurting their bottom line, driving down their margin and, thus, their ability to spend more with you.

If the customer detects the issue, you have a significant customer service situation on your hands that your team has to move fast to correct. Even if they make it right, your reputation may take a hit with that customer.

The Answer: Built-In Catch Weight Functionality in Business Central

The key to avoiding these situations is to focus on making the billing match the shipped product every time, and with older software, this level of precision is virtually impossible. DynamicsFoodERP, built on Microsoft Dynamics 365 Business Central, offers advanced functionality specifically designed to handle the complexities of catch weights in food distribution.

Here’s how DynamicsFoodERP solves the problem:

• Accurate Multi-Unit Tracking: Track both the number of cases and the exact weight of each product in real-time. This ensures that the weight billed matches the weight shipped, eliminating discrepancies and potential disputes with customers.
• Integrated Catch Weight Functionality: The catch weight tracking is fully integrated into the ERP system, seamlessly connecting inventory, billing, and financial processes. This means you no longer need to rely on manual calculations or third-party tools, reducing errors and saving time.
• Food-Specific Design: DynamicsFoodERP is built to accommodate the unique nuances of food distribution. Whether you’re managing meat, produce, or other variable-weight items, the system calculates exact weights and financial values to simplify operations and ensure 100% accuracy.
• Real-Time Inventory Insights: Gain visibility into the exact weight and dollar value of your inventory at any moment. For example, if you have 50 cases in stock, DynamicsFoodERP calculates the corresponding weight and financial data instantly, so you always have an accurate view of your inventory.

Discover how this system lets you track products accurately from the same platform your finance team uses to bill, eliminating the need for manual processes or third-party systems. The result is a seamless billing experience that prevents both undercharging and overcharging customers.

Get a demo to see how DynamicsFoodERP can transform your operations and help your business thrive, and learn more about how DynamicsFoodERP supports food distributors.