Using Fresh ERP to track your cost of production
With control over fresh produce pricing still mainly in the hands of retailers, growers need to do everything they can to maximise value where possible. As we touched on in our guide to fresh produce pricing strategies, having an accurate impression of what costs go into each item you produce is ideal.
For growers, being able to accurately track the cost of production for each line of produce can be vital. Among other benefits, it allows them to:
- Prioritise the most profitable types of produce
- Iron out inefficiencies
- Make better buying and selling decisions
However, many businesses don’t know their cost of production. To someone outside the fresh produce industry, this may seem like a simple estimation to make, but the nature of growing makes it anything but.
In some cases, growers aren’t aware of all the different cost areas that go towards their finished product, but more often they simply lack the accurate information or the ability to interpret it meaningfully.
This guide explores how Fresh ERP gives businesses the tools to nail down what their produce truly costs them. We explain what exactly counts towards cost of production, why it’s such a useful figure to have and, crucially, how integrated ERP technology can help you achieve greater accuracy in cost tracking.