Product recalls can be a nightmare for the food and beverage industry. According to a recent report on recall execution effectiveness, the average cost of recalls can be in the millions and the average time to completion can be many weeks. To the great benefit of the industry, ERP vendors have stepped up to the plate — providing the enterprise software solutions necessary for organizations to improve their business processes and comply with regulations as well as gain competitive advantage and increase profits.
The FDA Food Safety Modernization Act requires food manufacturers and distributers to comply with various provisions, including the ability to identify customers impacted by a recall and track lot controls and shelf life dates. Signed in 2011, the Act aims to raise the standards of food safety to the same levels present in the pharmaceutical industry — an industry that, due to quality control standards promoting drug safety, also considers traceability as a critically important software component. Pharmaceutical manufacturers must be able to trace a products origin, its path through the manufacturing process and its ultimate destination. Following are some ways that ERP software helps promote regulatory compliance for both industries:
- Enables the organization to incorporate its own recall plan directly into the ERP system
- Improves data accuracy and product traceability throughout the supply chain
- Promotes accurate documentation and quick retrieval of ingredient and finished good quality control testing results
- Enables tracking of shelf lives and expiration dates so as to automatically identify the items meeting a customer’s minimum shelf life requirements
- Improves customer service through demand planning, package management and improved visibly across the supply chain
Since product recalls are especially stressful to organizations, a number of ERP software vendors have engineered their offerings to address the pressing need for timely and low-cost recall processes. Such software enables organizations to track costs incurred from the recall and to establish notification procedures during each phase. The software also helps organizations draft press releases, notify the local FDA agency and determine how to dispose of the recalled product.
Regardless of what level of traceability your industry needs, ERP software can help your organization comply with regulations without the added worry of decreasing efficiency or profits. Visit Panorama’s ERP Vendors page to learn about different software vendors and visit our ERP Software Selection page to find out how we can help you narrow down your vendor and software choices.