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Ensuring Food Recall and Traceability Compliance with a Food and Beverage ERP Solution
While food recalls may have decreased slightly during the pandemic due to fewer inspections, the number of foods recalls overall has continued to grow. Not many people know that recalls have increased by over 50% in the last ten years. The number of claims and the amount sought during food and beverage recalls has also seen an increase within the past couple of years.
The average cost of food and beverage recalls in 2019 was over $400,000. Today, according to a study, costs have leaped to about $10 million, including lost sales, brand damage, public relations, and other expenses. The government also has an increasing interest in the compliance and regulation of the food and beverage industry.
Food and beverage manufacturers need ample visibility when detecting ingredients, allergens, or contamination. The key to surviving a recall is implementing a modern ERP software solution specifically designed for the food and beverage industry.
The Increasing Pressures on Regulations and Standards
The repercussions of contamination force food and beverage companies to operate under high regulatory pressures with penalties that include criminal charges, fines, and business seizures. It is the sole responsibility of these businesses to produce food and beverages with the ingredients and nutritional benefits promised on the packaging.
Manufacturers have no choice but to meet the increased food standards regarding the quality, quantity, and food safety requirements. ERP software can help with food and beverage industry regulations and compliance management. Food and beverage ERP helps manufacturers handle the changing regulatory expectations in the following ways:
- It helps businesses automatically comply with new changes in the regulatory environment.
- Food and beverage companies can systematically build processes that mitigate or entirely prevent product recalls.
- In case of a product defect or contamination, food manufacturers can identify and assess the full extent of the root cause.
- Businesses have access to a crisis management plan that will help mitigate upcoming recall issues.
- Promotes effective communication between customers, suppliers, and stakeholders during recalls.
- A central data source for real-time reporting as required or requested by regulators, suppliers, and customers.
Overcome Regulatory Challenges with a Food and Beverage ERP System
The right ERP solution provides food and beverage manufacturers with real-time access to data that enables companies to track and manage any possible contamination of allergens throughout the supply chain, from production to consumption.
With recalls increasing by the year, a food and beverage manufacturing ERP solution can help food companies weather the storm with capabilities like the Traceability Throughout Supply Chain.
In the event of a recall in your supply chain, this is what you can do:
Keep Track of Regulation Changes
Different countries have varying food safety regulations. They are complex, change frequently, and often become stricter over time. With a modern food ERP solution, companies have access to a central regulatory repository that makes it easier to adopt new regulations and comply with existing ones.
When a food and beverage company expands into other jurisdictions and countries, the burden of compliance follows. A suitable ERP keeps food and beverage companies on the right side of compliance.
Increasing and Maintaining Visibility
Practice real-time response to any reports of contamination or defects in your products at all times. This means always being ready to identify the products listed for recall, including the raw materials used to make the product and the duration of contamination or defect.
Your consumers identify potential product problems as fast as the media publishes them. Your business reputation will take a massive hit if you do not control the narrative or offer complete transparency during the recall process.
Be authentic as you communicate and address the issues that concern your food and beverage products. Let your customers know that you have the situation under control and that suitable mitigating measures are in effect.
The goal here is to ensure your customers don't lose trust in your brand. With that in mind, never provide false information or unconfirmed information during a product recall because you might cause irreparable damage to your business.
Practice Mitigation Measures
The ultimate goal should be preventing the possibility of a recall. This is what food and beverage companies can do to mitigate the likelihood of product recalls:
- Have a dedicated team in place for crisis management to continuously analyze supply chain processes.
- Reduce and streamline product lines, product quantities, and packaging, and make it easier to identify defective products.
- Practice precision with lot coding and keep samples from every product batch.
- Monitor customer feedback on all avenues to increase the chances of identifying a defect immediately.
- Streamline and practice effective communication with every party in the supply chain.
In a Nutshell
While no food and beverage manufacturer can eliminate the possibility of a product recall, an ERP solution provides essential capabilities that allow leading food and beverage manufacturers to deal with ever-changing regulatory expectations.
By incorporating modern food and beverage ERP software into the business ecosystem, food companies supported by ERP software can rapidly implement and comply with new regulatory requirements while building processes designed to prevent product recalls and mitigate consequences more effectively.
Blytheco + The Right ERP = A Recipe for Success
The uncertainty of the food and beverage industry can benefit from the streamlined efficiency of an ERP solution that is specifically designed with the industry's challenges in mind. Blytheco is a leader in consulting and implementing ERP systems for food and beverage companies and has over 40 years of experience in Manufacturing Software and Business Processes. Product recalls can't always be predicted, but with the right software solution and with the help of Blytheco' s reliable team, your company can:
- Increase Visibility
- Automate Processes
- Improve Collaboration
- Boost Efficiency