Managing Software: Identify options if fatal flaws develop in ERP software
Niche software may be able address ERP fatal flaws in back office functions relating to pricing, trade promotion, and trade receivables.
In the food industry, pricing is a complex set of business processes that often go beyond the scope of normal ERP functionality. Generally, food manufacturers have a national invoice price for each SKU. The net that is ultimately received for a product is reduced from the national invoice price and involves three factors: “invoice deviations” which are list price concessions that appear on the invoice; “after-invoice deviations” which are rebates set up as invoices from distributors, retailers, or foodservice end users for promotional programs tied to product sales; and “trade promotion payments” tied to direct marketing expenses like retail slotting allowances.