For the milling, malting and bakery industries, ingredient quality control has always been one of the most important challenges. Now more than ever, consumers are becoming more aware of healthy eating habits and their nutritional benefits, which is why quality control should take the front seat within the productional workflow.
As an industry specialist, Adifo has packed a ton of powerful features into MILAS, our industry standard ERP. These features support our customer and ensure the highest possible ingredient quality. One of these features is a so called “Quality based purchase pricing”, which makes it possible to automatically adjust the purchase price of wheat or other cereals during the intake, based on quality analysis results.
Cereals that are used in the milling industry, such as oats or wheat, will have varying levels of quality upon delivery. Unfortunately, this quality is not known until the intake. It is therefore of strategic importance that your ERP solution can support the process of automatic premium/discount generation based on the available analysis results. We simply call this: Quality based pricing. This MILAS Module is available in the newest release, based in Microsoft Dynamics 365 for Finance and Operations.
Quality based pricing in MILAS
To illustrate the challenge, imagine that we have a purchase contract for wheat with a protein content of 13%. During the intake, we take a sample for analysis. Once the results are in, the quality turns out to be worse than expected (only 12% protein). This process can be automated by integrating MILAS with BESTMIX Quality Control.
This wheat with 12% protein will be taken in and added to the stock. The purchase contract balance will be updated correctly, and a discount will be generated automatically towards the supplier to compensate for the quality drop. When MILAS issues the purchase documents (for example a self-bill invoice), there is a detailed quality-based price reduction attached to the invoice. Thanks to this process, the supplier is aware of the reasons for the price adjustment
The advantages of an automated quality-based pricing process
The benefits of this solution are obvious:
- A significant reduction of accounts payable processing costs (no need to adjust the price manually based on the quality difference)
- Savings due to accurate discount matching (invoice will be matched with the PO - because of the automatic generation process)
- Correct stock and contract balances for each quality class for the same ingredient.
- No more arguments with your cereal suppliers because of the full traceability of discount parameters
- No chance for human errors thanks to the robust integration between MILAS and BESTMIX Quality Control for the receipt process
Thanks to the quality-based pricing modules in MILAS, based on Microsoft Dynamics 365 for Finance and Operations, manual day-to-day tasks can be reduced to a minimum. Instead of spending time on repetitive administration, your employees can focus on improving your business without having to worry about making human errors.