Reports Indicate Recall Costs in Millions; Weeks to Execute
SYSPRO, a developer of best-of-breed, award-winning enterprise resource planning (ERP) software for on-premise and cloud-based utilization, announced today the company’s ERP software offering is a solution for the rising costs and time delays that FDA-regulated manufacturers and distributors are experiencing when a contaminated ingredient necessitates a product recall. The SYSPRO announcement was made in response to recent reports citing recall costs and execution times, including one conducted by the Food Marketing Institute, Grocery Manufacturers Association, GS1 and Deloitte (“Recall Execution Effectiveness: Collaborative Approaches to Improving Consumer Safety and Confidence,” 2010.)
According to the report on recall execution effectiveness, the average cost of a recall to participating food and consumer product companies can run into millions of dollars, not counting the extensive human costs involved in the recalls. In addition the studies indicated that the average recall took days and even weeks to complete.
SYSPRO ERP software offers extensive traceability capabilities as well as other functionalities that facilitate the ability of manufacturers to trace products from origin, through the manufacturing process, to their ultimate destination, fully maintaining assurance certification and tracking expiration dates.
SYSPRO lot traceability and serial tracking functionality afford extensive visibility up or down the supply chain, as well as providing specific components to parent tracking, thereby offering the means to expedite recalls, should the need arise.
Gorant Chocolatier, Boardman, Ohio-based maker of quality chocolates, recently stated that one of the reasons for the firm’s selection of SYSPRO ERP software was the outstanding reputation the software enjoys in the food industry. Specifically, noted Gorant, “The software’s ability to trace ingredients from origin through the manufacturing process to the ultimate customer not only helps us to accommodate customers who demand this ability, but to fully comply with FDA rules and regulations pertaining to food safety.” Gorant, in fact, did a mock recall that involved the tracing the path of a “tainted” ingredient. The recall was accomplished in less than two hours.
Chocolate Potpourri, a Chicago-area manufacturer of chocolate truffles, also established a recall plan based on SYSPRO ERP queries. The plan enables Chocolate Potpourri to locate the supplier of the suspect ingredient, the supplier production lots and the dates received. The company’s recall team has the ability to call up jobs to which the ingredients were issued, determine which customers had purchased the resulting products and issue a product recall, when required by governmental authorities.
Recently, SYSPRO announced that SYSPRO ERP software also facilitates the ability of food and consumer product companies to fully comply with the recently passed FDA Food Safety Modernization Act (FSMA), the most sweeping reform of US food safety laws in more than 70 years. The Act aims to ensure the U.S. food supply is safe by shifting the focus from responding to contamination to preventing it. Congress has been adding new rules to the act since its passage, the target being to implement the same levels of safety as those governing pharmaceuticals.