Integrated Lot Traceability - A Critical Ingredient For Today's Small Business Food Processor
Tuesday, December 29, 2009 at 01:42PM By Alex E Smith
I received a call recently from a small business owner who made a statement that I found to be quite profound, alarming, and unfortunately, characteristic of far too many small business food manufacturing and distribution companies. He said, "The recent situations with food recall epidemic has really woken everybody up and made us realize it's time to get a lot tracking software solution that will protect us in case of a recall. Is that something you guys might be able to help us with?"
This small business owner said that the recent situations had made many of his existing customers call and inquire as to the company's ability to manage any unforeseen recall. These customer inquiries, then, led the small business owner to call.
My conversation with this particular small business owner only made me more aware of what many of us who develop and sell food processing software have been aware of for some time now - there are a lot (no pun intended) of small food processing companies who do not have an adequate lot tracking software solution to protect themselves in the unlikely possibility of a recall. Smaller food processors frequently resort to entering raw ingredient and finished good lot numbers manually in Excel spreadsheets. Aside from the obvious problem of an employee entering a lot number incorrectly, the task of tracking the specific raw ingredient lot numbers used in specific manufacturing runs to produce multiple products that were eventually shipped to multiple customers is a near impossible feat to accomplish without data entry errors using Excel. Consequently, organizations of all sizes turn to food ERP software solutions with complete forward and backward lot traceability to arm the company with the management and tracking tools necessary in the event of a food epidemic and subsequent product recall. While this type of software functionality is a must for any sizable food processor, more and more food processing companies of all sizes are recognizing the need to migrate to a software solution that can account for the company's lot tracking needs. As the small business owner I spoke with told me, "If we had been hit by this recall, we would have gone from a small business to out of business."
Lot traceability occurs for both raw ingredients and finished goods. A good ERP system tracks the receipt of raw ingredients and their associated lot numbers from suppliers, the use of these raw ingredient lots in manufacturing runs, and the lot numbers of finished goods (and the lot numbers of the raw ingredients used to produce those finished goods) that were shipped to end customers. This software functionality provides food processors complete lot traceability that begins with the supplier and ends with the customer. Some go one step further to provide complete recall management, tracks the receipt of recalled goods back into inventory, and allows for any necessary accounting entries to be made for expenses incurred to the business as a result of the recall.
With rising levels of competition in the food processing industry and continuously changing compliance regulations in a global economy, complete lot traceability software functionality is becoming increasingly critical to smaller food processors' sustained business growth and longevity.
Alex Smith oversees TGI's sales to the small business manufacturing and distribution marketplace. TGI is an industry-leading provider of food processing software and food distribution software solutions to small and mid-market manufacturers and distributors. TGI's exclusive focus is on the development and support of Enterprise 21, the company's fully-integrated business management software solution. TGI is a privately-held organization with one of the highest revenue per employee ratios in the ERP softwareindustry.
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