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ERP provides cost savings and helps inform business decisions

25 April 2022

Coherent data capture throughout the production process and detailed analyses, using an ERP solution has enabled US meat producer Courage Production to maximise yields and efficiencies throughout its operation, enhance data collection and planning processes, and deliver cost savings. 

Courage specialises in hot dogs, beef jerky, poultry and delicatessen products. To better support government regulations and the increasing documentation requirements for its business, the company introduced ERP software from CSB, to help it simplify the process.

“In the past, everything was rather complicated with some 50 pages of paper being passed onto production, such as bills of material, recipes and work instructions,” explained Rob Engelhart, president at Courage Production. “We have now digitised and streamlined this to a great extent. At the same time, we have intensified our data capturing.”

One example of this is the efficiency gains that have been achieved in the company’s four smoke houses. Around 350 different items go through the smoke houses, where they each lose part of their weight. By weighing every smoking cart before and after smoking, using PC racks specifically set up for this purpose, the ERP system was able to aggregate the data to provide a precise overview. This enabled Courage managers to identify in which smoke house specific products had the lowest loss.

The availability of such information has allowed optimal planning and distribution of the raw materials to the different positions in the chambers. The numerous minor improvements achieved, such as a 2% increase in hot dog yields and 1% less water for beef jerky, has translated into a major cost saving. “This allows us to optimise the yields of every item in every smoke house, and to reduce our losses to an absolute minimum,” continued Engelhart.

Digital optimisation has also enhanced planning and control, with predictive machine planning helping to ensure the best possible utilisation of the production lines, while providing the flexibility to respond quickly to short-notice orders. 

As part of this, the CSB Advanced Planning and Scheduling (APS) module takes the five most important factors into account for planning – product group, label, wrapping films, allergens and set-up changes. This provides an optimised planning proposal, which can be adapted dynamically and in detail by managers.

Several additional optimisation measures have further increased transparency. Overall, the ERP system and its data on purchase orders, order entries, invoices, calculations, production orders and inventory movements will become the ‘workhouse’ and growth driver for all Courage Production’s business decisions. 

“We want to double our production and expand our products throughout the United States over the next five years,” said Rob Engelhart.


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