How Operations Leaders Prepare With Product Recall Management Software

What are Food Recalls?

Food or beverage products are recalled when it is unsatisfactory or unsanitary factors in the product batch. Food manufacturers are mainly held responsible for the circumstances caused by contaminated eatables. Usually, food recalls taking place because of food contamination. However, there are other reasons food recalls can be ordered. The mislabeling or adding a potential allergen can be grounds to recall a particular batch of food. In product recall management, the most important task is to focus on traceability and rapid communication to those affected.

The institutions that are commonly responsible for deciding whether food recalls are required are as follows:

• The food or beverage manufacturers themselves
• S. Department of Agriculture (USDA)
• And the Food and Drug Administration (FDA)

The process of food recalls mainly consists of three steps. Firstly, the sold food batches must be removed from the market immediately. Secondly, the products must be replaced or refunded. And lastly, the consumers must be alerted regarding whatever reason the food recall took place. The food recall process is a long and complicated one, resulting in numerous food manufacturing companies’ innumerable complications.

What Do Recalls Mean for Small or Medium-Sized Manufacturers?

Food recalls are a regular occurrence for most of the food industry. However, small or medium-sized food and beverage manufacturers are most affected by recalls. Smaller businesses are at greater risk of possible bankruptcy. Unlike large-scale food manufacturing companies, they do not have backup capital to fall back on. Hence, if food recalls become too frequent or costly, it becomes increasingly difficult for these Food & Beverage manufacturers to keep their organizations running profitably.

As product variety keeps increasing and production schedules shrink,  food recalls have started to increase exponentially. The adverse effects of food recall include:

• The additional cost of replacing the batches
• The tracking of recalled batches
• Consumer fallout and restoring brand image
• And reporting the food recalls accurately

Tips for Operation Executives to Optimize Traceability for Product Recall Management

COOs, Chief Operating Officers, is the second in command after CEOs. They are also known as VPs or Managers of Operations. When a food and beverage manufacturing company faces food recalls regularly, it is the duty of a COO to manage the operations of said organization so that the recall is completed efficiently. The use of technology is the primary weapon in this regard. Like a traceability module and other such systems, Business Management Technology is used to quickly and efficiently locate lots and product batches. When the recall occurs, vigilance and being swift to act is the game-changing factor. The COO usually runs Mock Recalls to know what to do and can practice for a recall situation. Consumer safety is always a top priority, so it must be considered at each step. The contaminated batch of products that have been shipped is identified and returned using complicated tracking procedures. Through traceability, we increase the product shelf life while minimizing the damage done in such times. Using traceability technology, the COO can quickly locate and bring the affected batches back with simplified reverse logistics. Fast and effective returns and communication saves the company from further lawsuits and penalties.

To summarize, the following steps are taken by the COO using the ERP technology to maintain perfect management in the organization:

• Advanced lot traceability technology helps maintain better inventory accuracy and ensure compliance with customers and industry requirements.
• Inventory batches are adequately enlisted, which helps organize batches by category. Categories can include:
  • Receiving date
  • Cost
  • Location the batch was from
  • Expiration date
• Contaminated food batches can be easily traced and returned.
• Customers can be alerted with recall management software.
• Inbound and outbound shipments can be traced.

Recalls are inevitable for food and beverage manufacturers. ERP technology can help streamline recall processes and save COOs the operations’ headache.

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