How Does an ERP System Help with Food & Beverage Compliance?
What keeps every company in the food and beverage industry up at night? It’s the threat of non-compliance and the fear of the dreaded product recall. In a recent article, we reviewed how to “Avoid Recalls with an ERP System.” When it comes to recall effectiveness, a recent found that the average cost of recalls can be in the millions and the average time to complete a recall can be several months. The good news is that recent advancements with ERP enterprise resource planning (ERP) systems - have stepped up to the plate, providing the business solutions necessary for organizations to improve their processes and comply with regulations. Now the food and beverage industry can rest assured that modern ERP systems now makes recalls easier in addition to offering a competitive advantage and an increase in profits.
3 Benefits of ERP Systems and Food and Beverage Compliance
1. Regulatory Compliance
The FDA Food Safety Modernization Act requires food manufacturers and distributors to comply with various provisions, including being able to identify customers affected by a recall as well as track lot controls and shelf life dates. A food and beverage company needs to be able to trace a product's origin, its path through the manufacturing process, and to its ultimate destination.
Here's what food and beverage ERP systems can do for you:
• Enables a business to incorporate its own recall plan directly into the system
• Improves data accuracy and product traceability throughout the supply chain
• Promotes accurate documentation and quick retrieval of ingredients and finished goods quality control results
• Enables tracking of shelf life and expiration dates, automatically promoting the first expired, first out inventory ideology
• Improves customer service through demand planning, package management, and improved visibility across the supply chain.
2. Recall Resources
Since product recalls are stressful to organizations, many vendors have engineered their ERP solutions to provide timely and low-cost recall processes. Tracking costs incurred, establishing notification procedures during each phase, organizing data and report, notifying the local FDA agency, and disposing of the recalled product are all easier with an ERP system.
Regardless of the level of traceability your business needs, ERP software helps you comply with regulations without the added worry of decreasing efficiency or profits.
When it comes to food production, health, safety, and quality controls are imperative. Despite the many precautions food and beverage manufacturers take to ensure those elements, however, research shows that there are still more than 20,000 people hospitalized worldwide due to foodborne illnesses.
3. Farm-to-Fork Traceability
Such an alarming number has put the focus back on supply chain traceability. The current regulation calls for "farm-to-fork traceability," which is a simplification of a very complex process: farm to manufacturer, to wholesale, to retailer, to refrigerator, to table, to fork, and so on. In many ways, the manufacturer bears the brunt of regulatory compliance, managing perishable, raw materials, deliveries, use-by dates, and strict cleanliness standards.
Juggling all of these requirements while simultaneously trying to control cost and manage growth is tricky, especially for large food manufacturers that are under pressure to deal with a high volume of raw material, balance numerous transactions, and manage distribution on a large scale.
Are you in the food and beverage industry? Do you worry about government regulations and supply chain traceability? Contact Southeast Computer Solutions today for expert advice on choosing and implementing the perfect ERP software for your business.
About Southeast Computer Solutions
Southeast Computer Solutions is based in Miami, Florida, and has additional operations in Mexico. For over 30 years, we have positively impacted the success of small and mid-sized businesses with effective business management implementations that improve our clients’ operations. We listen, we are accessible, and we care. Learn more by visiting our website or calling 305-556-4697.
Another version of this blog was posted on Southeast Computer Solutions’ Blog on July 12, 2016:
http://blog.southeastcomputers.com/food-and-beverage-business-management-software-solutions
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