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Integrated Lot Traceability: A Critical Ingredient for Today’s Small Business Food Processor

by admin

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, “This whole situation with the peanut epidemic has really woken everybody up around here 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, despite being in the business of processing various nuts and fruits, was fortunate enough to have avoided the existing peanut crisis and was not forced to recall any of the company’s products. Nonetheless, he did say that the current peanut situation 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 TGI.

My conversation with this particular small business owner only made me more aware of what many of us who develop and sell food manufacturing 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, such as Enterprise 21, 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 sizeable 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 the peanut recall, we would have gone from a small business to out of business.”

In Enterprise 21, lot traceability occurs for both raw ingredients and finished goods. Enterprise 21 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. Enterprise 21 goes 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. For the small business owner, lot traceability is worth more than just peanuts.

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One Response to “Integrated Lot Traceability: A Critical Ingredient for Today’s Small Business Food Processor”

  1. Ashish Namdeo says:

    Rightly Said !! Lot Traceability is major need of Food Companies irrespective of their Size. Recent Peanut Butter Incident reminds us again the importance of complete lot traceability. Any System which provides Advanced Lot Traceability & Solid Quality Management will help F&B companies ensure Consistent Quality Product & in case of Unfortunate event quick recall, thus maintaining Brand Image.

    I have published an article on lessons to be learnt from Recent Peanut Case Incident. You can find it here

    http://www.infosysblogs.com/oracle/2009/04/failure_of_peanut_corp_of_amer.html

    There is different need of Process & Discrete Manufacturer. While selecting any product, F&B industries have to make sure that they are picking the product designed for their Industry. You can find below one Insightful article which shows difference between Process & Discrete Manufacturing:

    http://www.infosysblogs.com/oracle/2009/04/process_or_discrete_manufactur.html