Glossary
Food Manufacturing Glossary
Key terms and definitions for food and beverage manufacturing, ERP software, compliance, and supply chain management.
B
Batch Tracking
The process of recording and monitoring groups of products manufactured together under the same conditions. Batch tracking enables quality control, compliance, and rapid recall capabilities.
Bill of Materials (BOM)
A comprehensive list of raw materials, sub-assemblies, and components required to manufacture a finished product, including quantities for each. In food manufacturing, this is closely tied to recipes and formulations.
C
CFIA
The Canadian Food Inspection Agency, responsible for food safety, animal health, and plant protection in Canada. CFIA sets regulations for food labeling, traceability, and recall procedures.
Cloud ERP
Enterprise Resource Planning software hosted on remote servers and accessed via the internet, rather than installed on local computers. Cloud ERP offers anywhere access, automatic updates, and reduced IT overhead.
Compliance
Adherence to government regulations, industry standards, and certification requirements governing food safety, labeling, and production. Key standards include FDA FSMA, CFIA, HACCP, SQF, and BRC.
Costing
The process of calculating the total cost to produce a food product, including raw materials, packaging, labor, and overhead. Accurate costing is essential for pricing decisions and profitability analysis.
D
Direct Store Delivery (DSD)
A distribution method where manufacturers deliver products directly to retail stores, bypassing distribution centers. DSD requires route management, driver apps, and delivery tracking.
E
EDI (Electronic Data Interchange)
A standardized electronic format for exchanging business documents (purchase orders, invoices, shipping notices) between trading partners. Many large retailers require EDI-capable suppliers.
ERP (Enterprise Resource Planning)
An integrated software system that manages all aspects of a business including production, inventory, sales, accounting, and human resources. Food manufacturing ERP systems add industry-specific features like recipe management, lot tracking, and nutritional labeling.
F
FDA
The U.S. Food and Drug Administration, the federal agency responsible for protecting public health by regulating food safety, labeling, and manufacturing practices in the United States.
FIFO (First In, First Out)
An inventory management method where the oldest stock (first in) is used or sold first (first out). FIFO is critical in food manufacturing to minimize waste, prevent spoilage, and maintain freshness.
FSMA (Food Safety Modernization Act)
A U.S. law enacted in 2011 that shifted the focus of food safety from responding to contamination to preventing it. FSMA Rule 204, effective January 2026, requires additional traceability recordkeeping for foods on the Food Traceability List.
H
HACCP (Hazard Analysis and Critical Control Points)
A systematic preventive approach to food safety that identifies physical, chemical, and biological hazards in production processes and designs controls to reduce risks. HACCP certification is required by many retailers and regulatory bodies.
I
Inventory Management
The process of ordering, storing, tracking, and controlling ingredients, packaging, and finished goods. Effective inventory management in food manufacturing requires FIFO tracking, expiration date monitoring, and automated reorder points.
L
Lot Tracking
The ability to trace a specific batch or lot of product through every stage of production — from raw material receiving through manufacturing, packaging, and delivery. Lot tracking enables rapid recalls and regulatory compliance.
M
Make-to-Order
A production strategy where products are manufactured only after customer orders are received. Common in bakeries and fresh food producers where products have short shelf lives and must be delivered fresh.
Make-to-Stock
A production strategy where products are manufactured in advance based on demand forecasts and stored as inventory until ordered. Common in frozen foods, snacks, and shelf-stable products.
MRP (Material Requirements Planning)
A system for calculating the materials and components needed to manufacture a product, generating purchase orders and production schedules based on demand forecasts, current inventory, and lead times.
N
Nutritional Analysis
The process of calculating the nutritional content (calories, macronutrients, vitamins, minerals) of a food product based on its recipe ingredients. Required for generating compliant Nutrition Facts panels.
Nutritional Labeling
The creation of Nutrition Facts panels and ingredient statements for food products, as required by FDA (US), CFIA (Canada), EU, and other regulatory bodies. Labels must include serving size, calories, nutrients, allergens, and ingredients.
O
Online Ordering Portal
A web-based platform that allows wholesale customers to place orders 24/7 through a self-service interface. Orders flow directly into the ERP system for production planning and fulfillment.
P
Production Planning
The process of scheduling and organizing manufacturing operations to meet customer demand efficiently. Includes determining what to produce, when to produce it, and what materials are needed.
R
Recipe Management
A system for creating, storing, versioning, and managing food product formulations (recipes). Includes ingredient quantities, preparation instructions, scaling factors, and links to nutritional analysis and costing.
Route Management
The process of planning and optimizing delivery routes for product distribution. Includes assigning drivers, sequencing stops, generating delivery slips, and tracking shipments.
S
SQF (Safe Quality Food)
A rigorous, credible food safety and quality certification recognized by the Global Food Safety Initiative (GFSI). SQF certification demonstrates a commitment to food safety management and quality.
Standing Orders
Recurring orders that are automatically generated at regular intervals (daily, weekly, monthly) based on a pre-agreed quantity and delivery schedule. Common in wholesale bakery distribution.
T
Traceability
The ability to track any food product and its ingredients through all stages of the supply chain — from raw material sourcing through production, processing, distribution, and sale. Full traceability enables 10-second recalls.
W
Warehouse Management
The process of controlling and optimizing warehouse operations including receiving, put-away, picking, packing, and shipping. In food manufacturing, includes temperature zone management, FIFO enforcement, and lot-level tracking.
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