The food business is one of the most strictly regulated in the world. Food traceability has become a crucial concern for manufacturers and consumers, with an increasing emphasis on food safety and quality.

This article will cover the significance of traceability in the food sector and discuss how a cloud-based ERP (Enterprise Resource Planning) system like DynamicsFoodERP from Liberty Grove, powered by Microsoft Dynamics 365, may assist in making food traceability simple.

Because of advancements in regulatory compliance, there is a steadily increasing demand for greater control in the Food and Beverage industry. Industry leaders work harder than ever to guarantee quality standards to accommodate increased customer demand while meeting higher expectations.

Regardless of such precautions, the grim reality is that most producers will eventually have to deal with a food quality issue that necessitates the product to be recalled from shop shelves – or directly from consumers after purchase. With this possibility in mind, manufacturers are turning to modern technologies to help them overcome such a crisis.

The best safeguard for firms is to deploy a cloud-based ERP solution enabling traceability throughout the organization and distribution cycles – this allows companies to recall the product promptly, fulfilling expected timescales.

Influences in the Industry

Several issues are driving the need for stricter food safety regulations.

While the industry is striving for greater control, external pressures also directly impact how manufacturers in the Food and Beverage industry conduct business.

Food and Beverage executives are learning that transparency is the best way ahead. It's simply too dangerous to get caught up in the aftermath of a recall, mainly if harm was caused to consumers by spoilage or contamination.

High-profile leaders are collaborating with communications teams to harness the role of corporate citizens, championing the tighter requirements set by governments.

Food and Beverage manufacturers are likely to learn about a problem through the Internet – think customer reviews on X (Twitter), Facebook, Instagram, and Yelp (among others), as these are go-to platforms for dissatisfied customers to vent their disappointments. Having a long-term communications strategy for dealing with issues on the Internet can be highly effective. Meanwhile, it's essential to maintain a well-trained and prepared customer service team, as manufacturers may expect to hear directly from individuals and businesses with whom they do business.

Factors Affecting Cost

Increased regulation requires firms to do more to preserve their brand and position in a competitive market. The downside of more robust industrial controls has one evident disadvantage: price hikes are hurting the cost of food. Some producers will raise market pricing to pocket revenues while making little attempt to improve operations.

A better-managed system provides the ability to conduct a food recall from start to finish.

Manufacturers require a completely traceable system to successfully resolve a food recall, beginning with the ingredients' source, tracking the item(s) to the processing plant, and eventually identifying the store and possibly even the point of sale to the consumer.

Modern conveniences, particularly refrigeration, allow producers to deliver things rapidly and to any location, usually within 24 hours. Outdated issues, such as seasonality and distant locations, no longer play a role in the distribution of goods. Consumers may now eat anything they want, whenever they want, as long as they're ready to pay the price.

The Advantages of an ERP

More than ever before, customers want to know where their food comes from. Manufacturers are grappling with the information age, and today's consumers are demanding more information than prior generations.

For example, health-conscious customers are likely to request specifics. You can expect consumers to inquire about the source farm(s) of their goods – are they local or organic – and whether animal-based food sources have plant-based diets that are filler-free and live in a free-range environment.

Consumers are increasingly more interested in personal nutrition, health, and ethical activities. Their purchase decisions directly impact their chosen lifestyle. Regarding food safety and traceability, this is a revolution.

News headlines show glimpses of system failures with immediate consequences for customers. Examining your business system, interpreting the results, and implementing a timely plan to limit hazards to the people purchasing your products is critical.

Advantages of a Modern ERP Solution

A contemporary cloud-based ERP system can help organizations in the food and beverage industry in various ways. Some examples are:

• A modern ERP system will keep producers ahead of the curve regarding compliance with mandated food safety standards. Meanwhile, it assists the organization in better organizing its processes for maximum efficiency; this improves workflow and relations between departments within the organization, various offices separated by locale, offsite partners, and customers (whether they are meeting sales associates face-to-face or ordering from a web-based storefront).
• Investing in a business tool capable of running the entire firm and adopting additional software systems positions today's manufacturers to meet expanding industry expectations. The sooner a firm deploys an ERP solution, the better it will thrive in today's changing business environment.

An ERP system will provide the resources to guide a Food and Beverage manufacturer through an inquiry, providing information from robust datasets so that a company can mitigate crises and correctly handle incident outreach.

An ERP solution will remove the uncertainty from production, processing, and distribution while offering clients the assurance they want.

What exactly is food traceability?

Food traceability refers to the ability to track and trace the transit of food goods from farm to fork.

It's critical to ensure food safety and quality and prevent and manage food recalls. Food makers can use traceability to swiftly identify and pinpoint the source of any contamination or quality issue, lowering the risk of harm to consumers and protecting the brand's reputation.

Traceability and Its Importance in the Food Industry

The food business is subject to stringent rules imposed by government bodies such as the FDA. Food traceability is critical for achieving these rules and customers' growing demands for transparency and accountability in the food supply chain. Traceability also assists manufacturers in improving their manufacturing processes by identifying inefficiency and improvement opportunities.

Other food safety programs, such as the Global Food Safety Initiative (GFSI), which includes the Safe Quality Food (SQF) standard, a GFSI-benchmarked certification program, are recognized globally and required by many retailers and food producers before they will buy a company's products. Food distributors serving British stores must follow the BRC Global Standard for Food Safety, a widely used certification standard among food manufacturers worldwide.

Furthermore, the Hazard Analysis Critical Control Points (HACCP) method, an internationally recognized method of identifying and managing food safety-related risk, manages food safety through analysis of biological, chemical, and physical hazards throughout the production phases: raw material production, procurement, handling, manufacturing, distribution, and consumption of finished products. Many of the world's leading manufacturers and vendors now employ the HACCP system as the foundation for their food safety management programs and GFSI audit methods.

Solutions for Food Traceability

Food traceability software is one of the most effective ways to establish food traceability.

The finest food traceability software enables enterprises to track and trace items from raw ingredients to finished goods at every level of the supply chain. This software gives real-time data on product flow and status, making discovering problems or concerns simple.

How Can an ERP System Aid with Food Traceability?

Integrating all areas of a manufacturer's operations, such as manufacturing, inventory, and supply chain management, an ERP system can help simplify food traceability. An ERP system provides a single source of truth for all data connected to a manufacturer's activities, making it simple to track and trace items at every level of the supply chain.

An ERP system can also assist manufacturers in meeting laws such as the FDA food traceability rule by providing real-time data on product movement and status. This data is easily accessible and evaluated, allowing for identifying and isolating any quality or safety concerns.

The final FDA rule mandates that firms that manufacture, process, pack, or store food on the Food Traceability List (FTL) keep records that include Key Data Elements (KDEs) relevant to Critical Tracking Events (CTEs). Covered businesses and farms, retail food venues, and restaurants will be obliged to provide information to the FDA within 24 hours or a reasonable time agreed upon by the FDA.

Finally, food traceability is critical for guaranteeing food safety and quality, complying with government rules, and addressing consumer needs for transparency and responsibility.

An ERP system helps simplify food traceability, integrating all areas of a manufacturer's operations, giving real-time data on the movement and status of products, and making it easier to identify and isolate quality or safety concerns.

Is it Time to Consider a Cloud ERP?

Liberty Grove can help you use many tools and services to help you achieve a successful Food and Beverage Cloud ERP deployment that will improve your organization's productivity, efficiency, and profitability – and ensure the traceability of products should a crisis occur.

Contact Liberty Grove for a complimentary consultation on how DynamicsFoodERP can help you through a smooth Cloud ERP deployment and give you the data insights you need to improve productivity, giving you a competitive advantage.

Related reading:

7 Ways Food and Beverage ERP Can Help Track Food Quality

Increase Employee Productivity with A Modern ERP Solution

7 Ways Food and Beverage ERP Can Help Track Food Quality

DynamicsFoodERP: What Is It and How Can It Help You?

About the author

Liberty Grove Software is an established Microsoft Partner that focuses on providing customers with sales, service, and support for Microsoft Dynamics 365 Business Central / Microsoft Dynamics NAV solutions and training and upgrades.

Over more than 25 years, Liberty Grove has assisted hundreds of customers with businesses ranging from small to mid-sized to Microsoft Partners in implementing, training, customization, and upgrading Microsoft Dynamics ERP solutions.