From June 6-8, 2010 in Houston, Texas, the International Dairy Deli Bake Association will host its annual IDDBA show and expo. The show provides an excellent opportunity for cheese and dairy processors and distributors, ingredient suppliers, equipment manufacturers, and technology vendors to showcase their new products. For those IDDBA 2010 show exhibitors and attendees about to engage in an ERP selection project and replace their existing software systems, there are a number of critical ERP software requirements that must be met to improve organizational efficiency, access to information, product safety, and lot traceability. These features include:
1. Financial management and accounting
2. Inventory management and a warehouse management system
3. Manufacturing
4. Procurement
5. Order management and customer service
6. Formula and recipe management
7. The ability to support variable batch size manufacturing
8. Multiple units of measure and product-specific unit of measure conversions
9. Shelf-Life and expiration date tracking
10. Food traceability software functionality
11. Catch weight processing
12. Industry compliance support and product recall management
13. Shipping and receiving
14. EDI processing
15. Customer relationship management (CRM)
Perhaps most importantly, each of the software features/functions noted above should be part of a fully-integrated ERP software system. If nothing else, one of the most significant benefits to be realized from ERP software ownership and implementation is the fact that all of the organization’s departments, from finance and accounting to quality control, will be able to operate on a single software platform with a consistent view of real-time business information. By selecting an ERP system that meets such requirements, cheese and dairy processors and distributors will be in a position to streamline operations and realize bottom-line profitability gains.
Wednesday, May 5, 2010
Friday, April 2, 2010
Three Ways ERP Software Can Help Companies in the Event of a Food Recall – and Help Prevent Future Recalls from Occurring
In the wake of yet another FDA recall (this time for food products containing HVP), now, perhaps more than ever, is the time for food manufacturing and distribution companies to get serious about using technology to improve their overall level of lot tracking and traceability, quality control processes, and internal product recall procedures. Let’s examine how ERP software can help food companies improve in the following areas:
1. Lot tracking and traceability. An ERP system with fully-integrated lot traceability software functionality can help food processors and distributors track the lot numbers of raw ingredients received into inventory, when the ingredients were received, the lot numbers of the raw ingredients that were consumed in manufacturing, lot numbers of finished goods that were produced, and the lot numbers of finished goods that were shipped to customers. In the event that an ingredient supplier should initiate a recall for a lot or group of lots for a particular ingredient, a food processor would be able to use its food processing software solution to see if and when the recalled ingredient lot was used to produce finished goods, all of the finished good lot numbers that were produced using the recalled ingredient lot(s), and all of the organization’s customers that received finished goods that were produced with the recalled ingredient lot(s), allowing the food processor to initiate its own recall and notify its customers to return or destroy the potentially contaminated lots.
2. Recall Management. A food manufacturing or food distribution software solution with an integrated recall management system can allow organizations to build their product recall plans directly into the ERP system, establish notifications and alerts to be sent to specific individuals during each step or phase of the recall, and simultaneously track all costs incurred as a result of the recall, significantly improving an organization’s readiness to respond to an unforeseen FDA-requested mock recall or an actual product recall should one need to be initiated. For additional information on developing recall procedures, please visit http://ohioline.osu.edu/aex-fact/0253.html.
3. Quality Control Processing. An ERP system can help organizations to automate their quality control activities. Using an ERP system, food processors and distributors can specify certain raw ingredients to be placed on hold automatically each time those ingredients are received into inventory and alert QC personnel that the ingredients need to be tested. QC personnel can then record test results directly in the system, release the ingredients into available inventory for future consumption in production, or reject the inventory to be subsequently shipped back to the supplier. Similarly, manufactured items can be placed on hold automatically following production, and the ERP system can alert QC personnel that the items are to be tested immediately.
By taking advantage of such software features in an ERP system, food processors and distributors can better prepare themselves for product recalls and implement the necessary quality control procedures to minimize the likelihood of a food recall.
1. Lot tracking and traceability. An ERP system with fully-integrated lot traceability software functionality can help food processors and distributors track the lot numbers of raw ingredients received into inventory, when the ingredients were received, the lot numbers of the raw ingredients that were consumed in manufacturing, lot numbers of finished goods that were produced, and the lot numbers of finished goods that were shipped to customers. In the event that an ingredient supplier should initiate a recall for a lot or group of lots for a particular ingredient, a food processor would be able to use its food processing software solution to see if and when the recalled ingredient lot was used to produce finished goods, all of the finished good lot numbers that were produced using the recalled ingredient lot(s), and all of the organization’s customers that received finished goods that were produced with the recalled ingredient lot(s), allowing the food processor to initiate its own recall and notify its customers to return or destroy the potentially contaminated lots.
2. Recall Management. A food manufacturing or food distribution software solution with an integrated recall management system can allow organizations to build their product recall plans directly into the ERP system, establish notifications and alerts to be sent to specific individuals during each step or phase of the recall, and simultaneously track all costs incurred as a result of the recall, significantly improving an organization’s readiness to respond to an unforeseen FDA-requested mock recall or an actual product recall should one need to be initiated. For additional information on developing recall procedures, please visit http://ohioline.osu.edu/aex-fact/0253.html.
3. Quality Control Processing. An ERP system can help organizations to automate their quality control activities. Using an ERP system, food processors and distributors can specify certain raw ingredients to be placed on hold automatically each time those ingredients are received into inventory and alert QC personnel that the ingredients need to be tested. QC personnel can then record test results directly in the system, release the ingredients into available inventory for future consumption in production, or reject the inventory to be subsequently shipped back to the supplier. Similarly, manufactured items can be placed on hold automatically following production, and the ERP system can alert QC personnel that the items are to be tested immediately.
By taking advantage of such software features in an ERP system, food processors and distributors can better prepare themselves for product recalls and implement the necessary quality control procedures to minimize the likelihood of a food recall.
Monday, March 29, 2010
The ERP Value Menu: Three User Licenses for $1?
Some of the best things in life are free (love, health, happiness, Gmail, thousands of apps on the Apple iTunes store, etc.). Many other things in life cost only $1 (or less) - just look at the value menu at pretty much any fast food restaurant. Now, it seems the concept of a “Value Menu” has hit the ERP market, as one software vendor is offering its ERP software at a price of just $1 for three user licenses (you can read the article here). My first reaction upon reading the article was, “Wow, that’s really cheap.” Then, as I started thinking about it, I asked myself, “Well, if something that usually sells for thousands of dollars is now just $1, what’s wrong with it? What else can I buy with that same $1?”
To help me with my “Items that Cost $1 Comparison,” I went to the dollar store to do a little investigating into the things that cost $1 and, more importantly, the things that are really worth $1. Here’s a list of some of the things I found that cost one dollar:
1. A travel size pack of tissues
2. Miscellaneous children’s plastic toys (probably all infested with lead paint)
3. 4 month old Christmas cards
4. A box of markers
5. A box of chocolates (expired as of February 1, 2010)
After my visit to the store, I determined that there was one common thread between each of the items I found – not one of them was worth even a single dollar, and I would never bother wasting my money purchasing any of the items. Trying to think about a small business owner’s perspective, I asked myself, “Would the owner of a company really feel comfortable buying an ERP system that costs the same as a travel size pack of tissues, or a box of markers, or expired chocolates?”
As with any purchase, individuals (and businesses) have an opportunity to weigh both the short-term and long-term costs of the things they buy. Going back to the fast food value menu, for just $1, you can buy chicken nuggets, a cheeseburger, two baked apple pies, or French fries. In the near short-term, you know this is a great option for a meal. It’s cheap, will taste reasonably good (if not amazing) going down, will leave your hunger satisfied, and will be easy on your wallet. But before you make your purchase, you also know that if you choose to eat off such a menu, in a matter of hours, you are going to return to your computer at work and feel like you’re going to need to take a mid-day nap. You also know that, perhaps, some of the items available on the value menu aren’t the healthiest of meal options and could lead to more serious, long-term health problems later in life (anybody ever see the movie Super Size Me?).
The same general logic can be applied to purchasing an ERP software solution. Again, think about the small business owner’s perspective. “What are the short-term costs? What are the long-term costs? What am I really getting for $1? Does $1 software meet all (or at least the majority) of my business’s software requirements? What happens when my small business grows? Does the $1 solution feature functionality that will accommodate my business’s growth, or am I going to have to buy additional modules, features, functions, bolt-ons, etc. later on? Could my annual maintenance fees increase over the next five years?”
The reality of the situation is that, the last I checked, there aren’t a whole lot of ERP companies classified as charitable organizations. Businesses need to turn a profit to stay in business. Now, can an ERP company realistically realize a profit on software licenses by selling those licenses at a rate of 3 for $1? Highly doubtful, unless of course the software is really worth $1, in which case no business should buy it in the first place! The more likely situation is that the ERP company is willing to take a short-term financial loss for software licenses in order to execute a more long-term revenue strategy in the future. For the small business, these future, unexpected, hidden costs are simply bad for business.
To help me with my “Items that Cost $1 Comparison,” I went to the dollar store to do a little investigating into the things that cost $1 and, more importantly, the things that are really worth $1. Here’s a list of some of the things I found that cost one dollar:
1. A travel size pack of tissues
2. Miscellaneous children’s plastic toys (probably all infested with lead paint)
3. 4 month old Christmas cards
4. A box of markers
5. A box of chocolates (expired as of February 1, 2010)
After my visit to the store, I determined that there was one common thread between each of the items I found – not one of them was worth even a single dollar, and I would never bother wasting my money purchasing any of the items. Trying to think about a small business owner’s perspective, I asked myself, “Would the owner of a company really feel comfortable buying an ERP system that costs the same as a travel size pack of tissues, or a box of markers, or expired chocolates?”
As with any purchase, individuals (and businesses) have an opportunity to weigh both the short-term and long-term costs of the things they buy. Going back to the fast food value menu, for just $1, you can buy chicken nuggets, a cheeseburger, two baked apple pies, or French fries. In the near short-term, you know this is a great option for a meal. It’s cheap, will taste reasonably good (if not amazing) going down, will leave your hunger satisfied, and will be easy on your wallet. But before you make your purchase, you also know that if you choose to eat off such a menu, in a matter of hours, you are going to return to your computer at work and feel like you’re going to need to take a mid-day nap. You also know that, perhaps, some of the items available on the value menu aren’t the healthiest of meal options and could lead to more serious, long-term health problems later in life (anybody ever see the movie Super Size Me?).
The same general logic can be applied to purchasing an ERP software solution. Again, think about the small business owner’s perspective. “What are the short-term costs? What are the long-term costs? What am I really getting for $1? Does $1 software meet all (or at least the majority) of my business’s software requirements? What happens when my small business grows? Does the $1 solution feature functionality that will accommodate my business’s growth, or am I going to have to buy additional modules, features, functions, bolt-ons, etc. later on? Could my annual maintenance fees increase over the next five years?”
The reality of the situation is that, the last I checked, there aren’t a whole lot of ERP companies classified as charitable organizations. Businesses need to turn a profit to stay in business. Now, can an ERP company realistically realize a profit on software licenses by selling those licenses at a rate of 3 for $1? Highly doubtful, unless of course the software is really worth $1, in which case no business should buy it in the first place! The more likely situation is that the ERP company is willing to take a short-term financial loss for software licenses in order to execute a more long-term revenue strategy in the future. For the small business, these future, unexpected, hidden costs are simply bad for business.
Wednesday, March 17, 2010
12 Process Manufacturing Software Requirements for Growing Manufacturing Businesses
In a recent article published by BusinessWeek, manufacturing in the United States grew in January 2010 at its fastest pace since August 2004. Despite a troubled global economy, it appears manufacturing in the United States is heading in the right direction. Given this surge in growth, there is a fairly good probability that many of these growing manufacturing companies will turn to technology to continue to streamline operations and increase bottom-line profits. For process manufacturers specifically, there are a number of key ERP software selection criteria that proposed technology solutions must meet to provide the foundation for future growth, lower operating costs, and increased manufacturing output expanding manufacturing businesses require. Below are twelve requirements every process manufacturing software solution must meet.
1. The software must provide both forward and backward lot traceability.
2. The ERP software solution must be able to track ingredient and finished good shelf lives and expiration dates.
3. The ERP system should allow the manufacturing organization to specify guaranteed minimum shelf life requirements for its customers who demand that products shipped to them have specific shelf life characteristics.
4. The system should allow the organization to establish formulas with multi-level bills of material.
5. The ERP solution should allow for multi-level manufacturing routings, which enable separate batch processing and filling operations, or “recipe cards.”
6. Proposed manufacturing software solutions should allow for scaled batch size quantities for manufacturing and recognize that there is increased volume of raw ingredients required for production.
7. The system should allow for multiple units of measure and the establishment of unit of measure conversions.
8. The ERP system must be able to identify raw ingredients and finished goods that should be put on quality hold for QC inspection immediately upon receipt into inventory and/or following production.
9. The system should have a built-in wireless warehouse management system to streamline warehouse operations and to improve the data entry process for ingredient and finished good lot numbers.
10. The system should be a fully-integrated ERP software product and deliver software functionality for order management, inventory control, warehouse management, manufacturing, purchasing, financial management and accounting, e-Commerce, business intelligence, and customer relationship management.
11. The system must be able to account for sample products that have a production cost and value in inventory but have a $0 price for customer shipments.
12. For growing process manufacturing organizations, the manufacturing software solution must be highly scalable in nature – it should allow the business to grow in revenue without a proportional expenditure on additional software functionality in the months and years following software implementation.
By selecting a process manufacturing software solution that can meet such criteria, process manufacturers can receive the technology necessary to continue to compete in a global market and continue to expand their respective businesses with increased productivity, efficiency, and profitability.
1. The software must provide both forward and backward lot traceability.
2. The ERP software solution must be able to track ingredient and finished good shelf lives and expiration dates.
3. The ERP system should allow the manufacturing organization to specify guaranteed minimum shelf life requirements for its customers who demand that products shipped to them have specific shelf life characteristics.
4. The system should allow the organization to establish formulas with multi-level bills of material.
5. The ERP solution should allow for multi-level manufacturing routings, which enable separate batch processing and filling operations, or “recipe cards.”
6. Proposed manufacturing software solutions should allow for scaled batch size quantities for manufacturing and recognize that there is increased volume of raw ingredients required for production.
7. The system should allow for multiple units of measure and the establishment of unit of measure conversions.
8. The ERP system must be able to identify raw ingredients and finished goods that should be put on quality hold for QC inspection immediately upon receipt into inventory and/or following production.
9. The system should have a built-in wireless warehouse management system to streamline warehouse operations and to improve the data entry process for ingredient and finished good lot numbers.
10. The system should be a fully-integrated ERP software product and deliver software functionality for order management, inventory control, warehouse management, manufacturing, purchasing, financial management and accounting, e-Commerce, business intelligence, and customer relationship management.
11. The system must be able to account for sample products that have a production cost and value in inventory but have a $0 price for customer shipments.
12. For growing process manufacturing organizations, the manufacturing software solution must be highly scalable in nature – it should allow the business to grow in revenue without a proportional expenditure on additional software functionality in the months and years following software implementation.
By selecting a process manufacturing software solution that can meet such criteria, process manufacturers can receive the technology necessary to continue to compete in a global market and continue to expand their respective businesses with increased productivity, efficiency, and profitability.
Thursday, February 25, 2010
Why “CRM” Should Go Beyond CRM in ERP Systems
Customer relationship management (CRM), as a stand alone software application, can provide sales representatives and account managers with an easy to use contact management system for storing email addresses, phone numbers, fax numbers, etc. It can also provide a means for improved customer contact tracking, scheduling follow up activities, recording notes from conversations with customers, and directly emailing customers from a single application.
When a manufacturer or distributor considers selecting an ERP software solution with a fully-integrated CRM application, however, the business’s ERP selection team should ask itself to what extent the phrase “customer relationship management” applies to other functions and applications within the ERP system, such as customer order frequency, customer buying habits, order and line item fill rates, and on-time delivery for customer shipments. Why? Because when the concept of “customer relationship management” is applied to other functional areas within an ERP system, businesses can see improvements not only in customer and prospect tracking but improved levels of customer satisfaction, faster order entry, and improved visibility to real-time customer order status as well. Organizations engaging in an ERP selection project should consider the following criteria when selecting an ERP CRM software system with true customer relationship management capabilities:
1) Does the ERP system track how frequently a given customer orders a specific product? By tracking customer order frequency on a product-by-product basis, organizations can minimize instances in which a customer stops purchasing a product without the organization’s knowledge of the loss in business until a significantly later date. A manufacturing or distribution software system that tracks customer order frequency on a product-by-product basis can automatically send a message to a customer’s designated sales representative or account manager notifying him or her when a specific customer has not ordered a product within its normal frequency. This can initiate a follow up call to the customer to make sure they are still satisfied with the products and services that have been provided to them and minimizes the likelihood of a customer ceasing purchases from the organization without the organization’s knowledge. It can also initiate a proactive response on the part of the manufacturer or distributor to ensure the customer’s requirements are being met with each customer order.
2) Does the ERP system track customer buying habits and recommend the customer’s most frequently ordered items to the sales or customer service representative at the time a customer places an order? A sophisticated ERP software system can track those items a customer orders on a routine basis. At the time a sales or customer service representative begins an order for a customer, the system can automatically generate a list of the customer’s most frequently ordered items, allowing for fast order entry and reducing the amount of time it takes for a customer to place an order. This also reduces the amount of time it takes a customer service or sales representative to enter a customer order, giving the representative the ability to process more orders on a daily basis.
3) Does the distribution or manufacturing software solution have the ability to track order and line item fill rates on a customer-by-customer basis? Order and line item fill rates can be a strong indicator of a manufacturer’s or distributor’s overall level of customer service. An organization’s ability to service customer orders in full directly from inventory while meeting the customer’s requested delivery date can result in an increased likelihood of repeat customer purchases. An ERP system with integrated forecasting, planning, inventory management, warehouse management, and business intelligence capabilities can improve customer order and line item fill rates while simultaneously reducing on-hand inventory and associated carrying costs. Using the ERP system’s business intelligence features, the organization can gain real-time access to its order and line item fill rates for all customers in aggregate and drill down to see order and line item fill rates on a customer-by-customer and customer-product combination basis. The organization can then use this information to see those customers and/or products in which their service level is lacking and implement new internal business processes to improve its service level in these areas. The end result, again, will be improved overall levels of customer service and satisfaction.
Customer relationship management software functionality is a key requirement when selecting an ERP solution. That being said, the proposed ERP solution’s CRM features must extend well beyond those of basic contact management; the concept of customer relationship management must be applied to other functions within the ERP system to improve the organization’s overall level of customer service and give the organization a competitive advantage in the market.
When a manufacturer or distributor considers selecting an ERP software solution with a fully-integrated CRM application, however, the business’s ERP selection team should ask itself to what extent the phrase “customer relationship management” applies to other functions and applications within the ERP system, such as customer order frequency, customer buying habits, order and line item fill rates, and on-time delivery for customer shipments. Why? Because when the concept of “customer relationship management” is applied to other functional areas within an ERP system, businesses can see improvements not only in customer and prospect tracking but improved levels of customer satisfaction, faster order entry, and improved visibility to real-time customer order status as well. Organizations engaging in an ERP selection project should consider the following criteria when selecting an ERP CRM software system with true customer relationship management capabilities:
1) Does the ERP system track how frequently a given customer orders a specific product? By tracking customer order frequency on a product-by-product basis, organizations can minimize instances in which a customer stops purchasing a product without the organization’s knowledge of the loss in business until a significantly later date. A manufacturing or distribution software system that tracks customer order frequency on a product-by-product basis can automatically send a message to a customer’s designated sales representative or account manager notifying him or her when a specific customer has not ordered a product within its normal frequency. This can initiate a follow up call to the customer to make sure they are still satisfied with the products and services that have been provided to them and minimizes the likelihood of a customer ceasing purchases from the organization without the organization’s knowledge. It can also initiate a proactive response on the part of the manufacturer or distributor to ensure the customer’s requirements are being met with each customer order.
2) Does the ERP system track customer buying habits and recommend the customer’s most frequently ordered items to the sales or customer service representative at the time a customer places an order? A sophisticated ERP software system can track those items a customer orders on a routine basis. At the time a sales or customer service representative begins an order for a customer, the system can automatically generate a list of the customer’s most frequently ordered items, allowing for fast order entry and reducing the amount of time it takes for a customer to place an order. This also reduces the amount of time it takes a customer service or sales representative to enter a customer order, giving the representative the ability to process more orders on a daily basis.
3) Does the distribution or manufacturing software solution have the ability to track order and line item fill rates on a customer-by-customer basis? Order and line item fill rates can be a strong indicator of a manufacturer’s or distributor’s overall level of customer service. An organization’s ability to service customer orders in full directly from inventory while meeting the customer’s requested delivery date can result in an increased likelihood of repeat customer purchases. An ERP system with integrated forecasting, planning, inventory management, warehouse management, and business intelligence capabilities can improve customer order and line item fill rates while simultaneously reducing on-hand inventory and associated carrying costs. Using the ERP system’s business intelligence features, the organization can gain real-time access to its order and line item fill rates for all customers in aggregate and drill down to see order and line item fill rates on a customer-by-customer and customer-product combination basis. The organization can then use this information to see those customers and/or products in which their service level is lacking and implement new internal business processes to improve its service level in these areas. The end result, again, will be improved overall levels of customer service and satisfaction.
Customer relationship management software functionality is a key requirement when selecting an ERP solution. That being said, the proposed ERP solution’s CRM features must extend well beyond those of basic contact management; the concept of customer relationship management must be applied to other functions within the ERP system to improve the organization’s overall level of customer service and give the organization a competitive advantage in the market.
Monday, February 8, 2010
Should Executives Use Their ERP Software System's CRM Functionality? Absolutely.
A few years ago, I heard a great story about former U.S. President George H. W. Bush. When President Bush was in office in the late 1980’s and early 1990’s, the President kept a Rolodex on his desk in the oval office. This Rolodex contained some 200+ names of the President’s closest friends, business partners, executives of large corporations, important campaign contributors, etc. It is said the President would make it a point to call each and every one of these 200 or so people every six months, not to ask them for anything, but really just to say, “Hi,” check in, and see if there was anything he could do to be of service.
One could argue that this practice of routine follow-up with the use of a Rolodex was really just a primitive form of what we know today as customer relationship management. Political opinions aside, President Bush’s methods of keeping tabs on those whom he believed to be most important to his job should serve as an example to small business owners and executives everywhere that customer follow-up is not solely the responsibility of regional sales or customer service representatives; owners and executives should take advantage of their ERP software’s customer relationship management capabilities to schedule routine calls to their customers, suppliers, and business partners.
Executives who leverage their small business ERP system’s CRM software functionality can accomplish two things. First, CRM software provides an easy way to schedule routine follow up calls with customers, suppliers, and business partners, maintain a history of prior discussions with these individuals, and easily recall what was discussed in prior conversations by maintaining electronic contact notes. For the small business owner, using the company’s ERP software system can provide an organized view of customer contact history well beyond that of Microsoft Outlook, calendar reminders, paper notes, etc.
Secondly, a small business can achieve higher levels of customer satisfaction and increase the likelihood of repeat customer purchases when an owner or executive places a non-sales call to a customer. The business owner can listen to customer requests and come to realize new opportunities for both business process and customer service improvements. In addition, small business executives who make it a point to call their customers on a routine basis enable the business to further differentiate itself and its service offerings from its larger competitors. These distinctions, in turn, will ultimately lead to increased revenues and continued business growth.
One could argue that this practice of routine follow-up with the use of a Rolodex was really just a primitive form of what we know today as customer relationship management. Political opinions aside, President Bush’s methods of keeping tabs on those whom he believed to be most important to his job should serve as an example to small business owners and executives everywhere that customer follow-up is not solely the responsibility of regional sales or customer service representatives; owners and executives should take advantage of their ERP software’s customer relationship management capabilities to schedule routine calls to their customers, suppliers, and business partners.
Executives who leverage their small business ERP system’s CRM software functionality can accomplish two things. First, CRM software provides an easy way to schedule routine follow up calls with customers, suppliers, and business partners, maintain a history of prior discussions with these individuals, and easily recall what was discussed in prior conversations by maintaining electronic contact notes. For the small business owner, using the company’s ERP software system can provide an organized view of customer contact history well beyond that of Microsoft Outlook, calendar reminders, paper notes, etc.
Secondly, a small business can achieve higher levels of customer satisfaction and increase the likelihood of repeat customer purchases when an owner or executive places a non-sales call to a customer. The business owner can listen to customer requests and come to realize new opportunities for both business process and customer service improvements. In addition, small business executives who make it a point to call their customers on a routine basis enable the business to further differentiate itself and its service offerings from its larger competitors. These distinctions, in turn, will ultimately lead to increased revenues and continued business growth.
Monday, January 25, 2010
Food Processing Software: Using Wireless Warehouse Management Technology for Lot Tracking and Traceability
The Institute for Food Technologists (IFT) recently submitted a report to the FDA identifying, among other things, the use of RF and barcode scanning devices in food processing plants as a means to ensure accurate ingredient and finished good lot tracking and traceability. Through the deployment of a food processing software solution with integrated wireless warehouse management functionality, food and beverage manufacturers can achieve streamlined warehouse operations and improve warehouse productivity while simultaneously improving accuracy for product and ingredient lot history.
Many food and beverage manufacturers, large and small, enter lot data for ingredients and finished goods into Excel spreadsheets or paper-based logs. This process, in addition to being time consuming for employees in the receiving and manufacturing departments, can increase the likelihood of inaccurate data entry. With lot codes potentially being sixteen or twenty digits long, there is significant potential for human error. By using manufacturing software systems with RF and barcode-enabled warehouse management technology, however, lot codes can be generated automatically and barcodes applied for receipt of ingredients into inventory, finished goods produced and placed into inventory, and finished goods shipped to customers. An employee in the shipping and receiving or manufacturing department would simply scan the barcode and enter the quantity received, produced, or shipped – the system would automatically identify the lot number(s) for the items and store the data, reducing the likelihood of inaccurate ingredient or finished good lot information.
In addition, ERP software solutions with fully-integrated forward and backward lot traceability can track the lot numbers of all ingredients received into inventory, when these ingredients were received, when these ingredients (and their associated lot numbers) were used in manufacturing, the lot numbers of the finished goods that were produced with these ingredient lots, and which of the food processor’s customers were shipped a particular lot number for a finished good. Should a supplier initiate a recall for a given ingredient, the food processor, thanks to accurate lot data as a result of using RF and barcode devices, will have the necessary information to initiate a product recall for its finished goods that were produced with the contaminated raw ingredient lot. These processes will reduce the time between notification of an ingredient recall and an associated recall of finished goods while also minimizing the amount of product being recalled due to more pinpoint accuracy of the specific finished goods lots that were affected.
By taking advantage of ERP systems with fully-integrated wireless warehouse management functionality, food and beverage processors will have the necessary technological tools to ensure accurate lot tracking and traceability.
Many food and beverage manufacturers, large and small, enter lot data for ingredients and finished goods into Excel spreadsheets or paper-based logs. This process, in addition to being time consuming for employees in the receiving and manufacturing departments, can increase the likelihood of inaccurate data entry. With lot codes potentially being sixteen or twenty digits long, there is significant potential for human error. By using manufacturing software systems with RF and barcode-enabled warehouse management technology, however, lot codes can be generated automatically and barcodes applied for receipt of ingredients into inventory, finished goods produced and placed into inventory, and finished goods shipped to customers. An employee in the shipping and receiving or manufacturing department would simply scan the barcode and enter the quantity received, produced, or shipped – the system would automatically identify the lot number(s) for the items and store the data, reducing the likelihood of inaccurate ingredient or finished good lot information.
In addition, ERP software solutions with fully-integrated forward and backward lot traceability can track the lot numbers of all ingredients received into inventory, when these ingredients were received, when these ingredients (and their associated lot numbers) were used in manufacturing, the lot numbers of the finished goods that were produced with these ingredient lots, and which of the food processor’s customers were shipped a particular lot number for a finished good. Should a supplier initiate a recall for a given ingredient, the food processor, thanks to accurate lot data as a result of using RF and barcode devices, will have the necessary information to initiate a product recall for its finished goods that were produced with the contaminated raw ingredient lot. These processes will reduce the time between notification of an ingredient recall and an associated recall of finished goods while also minimizing the amount of product being recalled due to more pinpoint accuracy of the specific finished goods lots that were affected.
By taking advantage of ERP systems with fully-integrated wireless warehouse management functionality, food and beverage processors will have the necessary technological tools to ensure accurate lot tracking and traceability.
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