No matter how you feel about it, recalls are an unfortunate reality in the food and beverage manufacturing industry. Just turn on the news, and you will hear story after story about companies pulling products off the shelves due to contaminated ingredients or faulty labeling. If your company has been hit by recalls, you know the difficulty of the situation. In fact, for many food and beverage manufacturers, recalls are akin to a “state of emergency.”
Though the industry produces several billion dollars a year, it is facing increasing challenges, particularly in the area of food and beverage recalls. While it is almost impossible to know when and if a recall will occur, there is something food manufacturers can do in order to safeguard their business and limit the effect of recalls on production and profit. Recalls can never be predicted, but with a little preparation ahead of time, food manufacturers can prevent recalls from significantly affecting the business.
Recalls in the Food Manufacturing Industry: Why Do They Occur?
Recalls can occur for a variety of reasons. While the most common reasons for recalling food and beverages is the contamination of ingredients, recalls can be attributed to something as simple as a mislabeled package. No matter the reason, food recalls can wreak havoc on the food manufacturing industry, contributing to smaller profit margins and even going as far as to shut down a business temporarily.
Because the food manufacturing process involves many steps, it can be difficult to for companies to find the origin of the problem that lead to the recall. Without the proper systems and tracking in place, food manufacturers cannot determine if the problem originated at the primary manufacturing facility, during packaging, or with a third party. Not being able to pinpoint the exact location of the problem will lead to more time being spent on the investigation of the recall and less time allotted to regaining the profits lost from the recall.
Using Food Industry ERP Software to Prepare for Recall Situations
For companies whose profits rely upon the safety and quality of the food they manufacture, a solid recall action plan should be in place. Developing a plan and implementing the right technology ahead of a recall is key and can make all the difference in how your company bounces back from recall situations. With food industry ERP software, each ingredient can be coded, making it easily traceable should a recall occur and the product need to be pulled off the shelf. By automating traceability and simplifying identification, food industry ERP software can quickly point food manufacturing firms to the source of the problem so they can determine their next course of action.
IWI Consulting offers food industry ERP software to help food manufacturing companies adequately prepare for recall instances and any other related food and beverage “emergencies”. You can learn more about our food industry ERP software by visiting our Sage EM (formerly known as Sage X3) page.
Download our whitepaper, “Managing Product Recalls to Reduce Risk and Minimize Costs,” for further information on improving your company’s response in preparation of a recall.
Our small and dedicated team specializes in helping small-to-medium size Canadian businesses and non-profits select and adapt Enterprise Resource Planning (ERP), Customer Relationship Management (CRM), Human Resource Management (HRMS) and IT services. With IWI’s 15 years in business and 100 plus years of combined experience, IWI has helped hundreds of food manufacturing, distribution, and financial service companies gain efficiency, grow, and lower their operating costs.
With the unique combination of industry knowledge and diverse technology expertise, IWI provides cost-effective solutions to help clients gain a competitive edge. As a Sage business partner, servicing the Greater Toronto Area, we support evaluation and implementation of operations and finance systems to optimize technology, ensuring high return on investment with a quick and painless transition to new software.