As compliance regulators breathe down the necks of food producers, recalls have become the new normal in the food business. Recalls not only lead to delayed delivery times but also add up to the cost of production and hence hinder profits.
Let us dig deep into the issues faced by food producers owing to recalls:
Increased Cost of Production
With recalls being the new normal production for a lot or batch which is recalled has to start from scratch. This adds up to the total cost of production and leads to losses for the food producer.
Delay in deliveries
A recall for a particular batch and lot leads to a delay in delivery to the customer that lot was meant for. Delivery deadlines and plans are made based on lead time for a single production cycle hence these deadlines are breached as and when product recall happens to raise doubts on the credibility and goodwill of food producers
With product recalls on the rise often the stock of customers gets disrupted and often leads to a shortage of stock. This leads to more customer grievances and can tarnish the goodwill of the food producer and move him out of business.
How to deal with product recalls?
With grievances on the rise and diminishing margins owing to recalls, food producers need to cater to this issue for a sustainable and profitable business. One way to deal with product recalls and secure the business is through food ERP with Lot Traceability feature.
In hindsight lot traceability is the ability to be able to track production runs called lots throughout the supply chain. To speak volumes each product can be traced right back to its batch and lot number making food ERP’s weight worth in gold.
Food ERP with an effective lot traceability mechanism brings to the table the following benefits for food producers:
Real-time data tracking
Food ERP enables real-time data tracking at all times in each stage of production. This helps to ensure each lot and batch is dispatched and meeting the delivery deadlines set by the food producer.
Food ERP with a lot traceability feature enables the producer to dispose of an expired lot or batch of produce. By scanning the bar code of a product, the produce can be traced right back to its lot and batch number and that lot can be disposed of before it reaches the customer’s plate.
Better Grievance Handling
Produce ERP ensures all lots are dispatched in time, and in case of damaged produce, the entire lot is disposed of in time. This ensures the end consumer does not have any grievances and paves the way for customer satisfaction.
Food ERP is no more an item of expenditure but an investment with invaluable returns. With lot traceability, food producers can secure their businesses from recalls and in hindsight make more profits making food ERP an asset for all food producers at each scale of production.