Part two of a three part series on raw produce contracting and pricing.
After understanding the challenges faced in pricing and contracting, it’s clear that processors need a system tailored to their unique needs. In this post, we’ll explore the key features of a flexible platform designed specifically for raw fruit and vegetable processors.
Keys to a More Flexible Pricing and Contracting Solution
If you’re a raw fruit and/or vegetable processor looking to improve agility and accuracy in your pricing and contracting process, here are some core capabilities to seek in a specialized platform:
Dynamic, Customizable Pricing Engine
Unlike static ERP systems, an effective pricing and contracting solution for processors should offer a dynamic pricing engine that can account for agricultural variables, such as harvest date, crop quality, unexpected weather conditions, distance to processing plant, irrigation methods, cultivation practices, and much more. In a flexible platform, these variables are built-in, allowing processors to adjust for precise pricing while reducing the need for additional programming. This flexibility empowers processors to manage the nuances required in contracts to incentivize and compensate growers to deliver the highest quality produce, without being limited by software constraints.
Efficient Updates
In an ideal solution, processors can implement updates and adjustments quickly. This is essential for staying competitive, as it enables processors to respond to market changes or new regulations without the lag time and costs associated with extensive release cycles. In raw fruit and vegetable processing, where responsiveness to industry changes is crucial, a platform that works “at the speed of business” is highly valuable.
Supplier Portals for Enhanced Transparency
Streamlining supplier relationships is another advantage of a purpose-built platform. A supplier portal provides direct, immediate online access to payment statements and load-by-load weights and grades, reducing the need for manual statement distribution and saving processors valuable time on administrative tasks. This transparency builds trust by giving growers, haulers, and other partners immediate access to critical details, helping them make more timely decisions that support higher quality produce.
Seamless Integrations
While many processors use an ERP and receiving and grading systems for their core operations, the ideal contracting solution should integrate smoothly with existing systems. This integration allows processors to leverage a flexible contracting platform while maintaining their ERP as the system of record for payment processing, inventory and data management. Many ERP and receiving and grading systems are uniquely configured, so a platform that can adapt to different formats and requirements is crucial.
Advanced Reporting Capabilities
Having a pricing and contracting solution that supports advanced reporting capabilities is essential. The ability to simply and quickly customize any report to answer the “question of the moment” provides processors comprehensive data for operational decisions. Effective reporting helps processors make informed choices in real-time, supporting ag operations’ mission of providing the highest quality crop to the plant while controlling costs.
By seeking these critical features in a specialized pricing and contracting platform, processors can overcome the limitations of traditional systems and unlock greater agility, accuracy, and transparency in their operations.
Read Part 1: The Challenges of Pricing and Contracting in Raw Fruit and Vegetable Processing
Read Part 3: Enhancing Pricing and Contracting with ExtendAg
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