Your company’s reputation in manufacturing is only as good as your latest output. Not meeting quality standards increases your chances of finding yourself amidst a product recall. These recalls are detrimental to your brand’s reputation and can result in losses if not managed correctly.
The most practical solution to effectively managing product recall is implementing an ERP, like GoldFinch, that understands the needs of food and beverage manufacturers. These industry-specific platforms help prepare for recalls, manage them, and create a recovery strategy. Having it in your company means you’ll quickly identify affected products and track them along the supply chain.
Read on to understand the product recall process and how ERPs help.
The Product Recall Process Explained
Product recalls in food processing are crucial to a company’s success. The process involves removing food from the market at whatever stage of the supply chain because of defects in the manufacturing process. It could be a harmful ingredient or incorrect quantities, so process manufacturing companies must invest in systems to help prepare and manage the recalls more effectively.
To better understand the process, here is a mock recall scenario to help understand the life of a recalled product. Let’s say you are company Y’s safety officer, which deals with manufacturing yogurt. Then one day, you get a complaint from the health authorities that several health complications are associated with your company’s yogurt.
The first step is identifying and assessing the problem. Inform the team handling the manufacturing of the potential food safety. An internal recall management team will significantly increase your chances of effectively managing the process. They’ll identify the specific hazard, determine its risks, and determine the necessary actions to address it.
You’ll then need to identify the affected products and confirm their traceability. Notifying business stakeholders and consumers in the early stages of the recall will also help streamline the process. You can hold a press conference addressing the issue or use public communication channels like radio and TV announcements.
Knowing that the recall is public, it’s time to retrieve the products from the market and dispose of them. You can collect them from the customers for disposal, or they can dispose of the products themselves.
Having an ERP will help monitor the recall’s effectiveness in the different stages of the process. Monitoring helps verify distribution and sales have stopped, and the products have been disposed of. Repeat the press release with a different approach if you find the recall ineffective after assessing it.
Terminate the recall after confirming the exercise was successful, and inform everybody of the termination. It is crucial to document the recall by creating a final report that includes the products involved, evidence of the disposal, and statistics of the recall’s effectiveness.
Benefits of Effectively Managing Recalls with ERP
ERP is a crucial component in the success of any food processing company. The software helps effectively manage recalls by improving traceability, enhancing data analytics, improving compliance, and streamlining the entire recall process. Here are the benefits of having an ERP manage product recalls:
Enhanced Data Integrity
One of the primary roles of ERP in recall management is to ensure you are ready. The system enhances data integrity to ensure you have the necessary documentation and proof in case of a recall. Its centralized storage can handle large amounts of data from different sources, making it easy to access real-time data and specialized reports.
Storing company information in one location also promotes one version of the truth, significantly increasing accuracy and accountability. It also enforces the FSMA guidelines requiring strict data management procedures for your management system. You’ll also find it easier to locate products affected by the recall.
Streamlines the Product Recall Process
Modern ERPs like GoldFinch focus on automation. The software automates several functions in the recall management process, reducing the time and effort channeled to execute recalls. Automated functions include notifying customers, identifying the affected products, and tracking the recall’s progress.
Enhanced Control and Visibility
Food and beverage ERPs operate with a centralized system. The system manages all operation aspects, from production and procurement to inventory management. It also enables manufacturers to quickly identify and resolve issues by providing end-to-end visibility and control over the supply chain.
Reduced Risk of Recalls
By improving supply chain visibility and control, your ERP will significantly reduce the likelihood of finding yourself in a recall. It enhances reporting and data management, leveraging technology like RPA and BI. These systems help save time and resources while protecting your brand’s reputation through consistent quality.
Improved Compliance
Keeping up with compliance regulations for food manufacturers is an uphill battle. You need a system to help keep clear records for traceability in case of recall management. Manually managing these compliances exposes the data to human error, which can lead to compliance violations. ERPs automate most of these functions and ensure all regulations are met.
Builds Customer Trust
You’ll build a better customer relationship if your products are recall-free. Having an ERP streamlines your processing function, ensuring error-free formulas and quality products.
Effective traceability in case of recalls also builds customer trust. You need a system that can identify all products affected by the recall, their location, and arrange for disposal. It also shows your commitment to product quality and safety, improving your relationship with customers and stakeholders.
Why GoldFinch?
Several features make GoldFinch your perfect solution for product recall management in the food processing industry. You can track products across the supply chain using its lot traceability function. It makes it easy to locate affected products and dispose of them.
Automation is another reason you should consider GoldFinch. It automates most of the functions involved in recalls, like shipment tracking, inventory management, and generating reports. These reports also help maintain compliance to avoid any fines.
GoldFinch stores all company data in a shared database. Analyzing the recall history makes it easy to identify trends and patterns. The platform grows with your operations, guarantees data safety, and provides 24/7 customer support.
Conclusion
The best way to manage product recalls is to avoid them in the first place. And ERPs like GoldFinch provide the tools and features to prepare, manage, and recover from product recalls.
Contact us today to get started.
