For feed milling, flour milling, and malting industries, maintaining control over the quality of raw ingredients is a constant and critical challenge. In today’s world, consumers are increasingly health-conscious and aware of the nutritional value of their food, making quality control not just a back-end necessity but a front-end promise. As industry experts, BESTMIX Software understands these challenges and has integrated industry best practices into our leading ERP solution, BESTMIX Enterprise, powered by Microsoft Dynamics 365 for Finance and Operations.
One standout feature in our ERP system is "Quality-Based Purchase Pricing," which enables automatic adjustments of purchase prices based on the quality of ingredients upon intake. This means you pay only for the actual quality delivered—saving costs and ensuring precise procurement.
Understanding Quality-Based Pricing: A Better Way to Buy
Soft commodities used in the milling industry, such as soy, corn, or wheat, often have fluctuating quality levels at delivery. Unfortunately, this quality is often unknown until the moment of intake. Therefore, it is crucial that your ERP solution supports automatic premium or discount adjustments based on quality analysis results. Enter BESTMIX Enterprise’s Quality-Based Pricing module, available in our procurement solutions, which seamlessly integrates quality control into the purchasing process.
Practical Example: Quality-Based Pricing in Action
To demonstrate how this feature works, let’s consider a common scenario: you have a purchase contract for wheat with a protein content of 13%. Upon delivery, a sample is taken for analysis, and it reveals a protein content of only 12%. Here, the out-of-the-box integration between BESTMIX ERP and BESTMIX Quality Control automatically adjusts the intake and inventory records, reflecting the actual quality received.
Moreover, the system automatically generates a discount towards the supplier to compensate for the quality drop. When the purchase documents are issued—such as a self-bill invoice—they include a detailed breakdown of the quality-based price adjustment. This ensures full transparency, allowing the supplier to understand the reasons behind the price reduction.
Key Benefits of Automated Quality-Based Pricing
Implementing an automated quality-based pricing process offers numerous advantages, including:
-
Cost Savings in Accounts Payable: Automating price adjustments based on quality eliminates the need for manual corrections, reducing administrative costs significantly.
-
Accurate Discount Matching: Invoices are automatically matched with purchase orders, ensuring precise and reliable discount applications.
-
Correct Stock and Contract Balances: Keep accurate inventory and contract balances for each quality class of the same ingredient, providing better oversight of your stocks.
-
Reduced Supplier Disputes: With full traceability of discount parameters, arguments with suppliers are minimized, leading to more harmonious business relationships.
-
Elimination of Human Errors: The robust integration between BESTMIX ERP and BESTMIX Quality Control eliminates human errors in the receipt process, ensuring your data is always accurate.
Streamline Your Operations with BESTMIX Enterprise
BESTMIX Enterprise, built on Microsoft Dynamics 365 for Finance and Operations, reduces manual, repetitive tasks, allowing your team to focus on what truly matters—growing your business. With quality-based pricing, you can transform how you manage ingredient procurement, enhancing your workflow efficiency and supporting your commitment to high-quality production.
Quality-based pricing is not just a feature; it’s a strategic advantage that empowers your business to operate smarter, with more transparency and less waste. Let BESTMIX Enterprise help you take the guesswork out of procurement and drive your business forward with confidence.