The recent Class I recall of over 6,000 bags of Lay's potato chips serves as a sharp reminder of how quickly a manufacturing slip-up can turn into a complex, emergency and brand reputation damaging situation. Undeclared milk ingredients were discovered in their Classic chips across Washington and Oregon which led them to face a product recall and damaged their brand reputation.
Beyond the immediate logistical nightmare of recovering thousands of products from store shelves, process manufacturing companies face long term consequences which damage consumer trust, regulatory careful examination, and financial implications that extend far beyond the recall costs.
For a brand that's been a household name for decades, such incidents damage the years of reputation. We can learn from such incidents and it is also the crux of today’s blog on ‘how a process manufacturing ERP system’ could help in tackling similar challenges.
Just looking at Lay's recent recall of 6,300 bags might seem manageable but the reality is far different. Each recalled unit usually costs manufacturers between $8 to $10 in direct expenses alone. Again, this is just the tip of the iceberg.
Behind the scenes, companies struggle to coordinate with retailers in organizing reverse logistics and most importantly disposing of those compromised products.
But the real financial dent lies in the aftermath. Legal teams work overtime handling lawsuits while PR departments handle brand damage in the media. According to a recent Food Marketing Institute study, 56% of consumers switch brands temporarily after a recall, and a concerning 15% never return to the recalled brand.
Imagine being able to pinpoint the exact location of affected items within seconds, this is the power of traceability in a process manufacturing ERP. Modern ERP systems track every ingredient from the moment it enters your facility to when it leaves as a finished product, ensuring complete visibility across the supply chain. Each lot number carries critical information, including the ingredient's origin, the production line it passed through, quality checks it underwent, and its final destination. With advanced traceability features, manufacturers can quickly trace ingredients back to their sources, allowing them to isolate affected products without recalling entire batches. This not only reduces costs but also minimizes waste and protects brand reputation.
Cross-contamination is a major concern in food and process manufacturing especially when handling allergens. ERP systems help you implement better process controls that prevent cross contact between production lines. With a process manufacturing ERP, you can set strict guidelines for raw materials and semi-finished products to make sure that they are handled on dedicated production lines to minimize risk.
A process manufacturing ERP ensures that all product information is accurately recorded and traced within the system. When printing labels, the ERP automatically fetches precise details like ingredients, allergens and regulatory compliance data. This eliminates the risk of mislabeling due to human error and helps meet FDA and other regulatory standards which reduces the chances of costly recalls.
In manufacturing, despite all preventive measures, recalls can still occur. In this case, process manufacturing ERP software can help in speeding up the recall processes by quickly identifying affected batches, automating communication with retailers, and smoothing reverse logistics.
Today, no manufacturer wants to end up in Lay's shoes. Their situation has clearly shown the importance of precisely tracking manufacturing processes and, if things still do not go as planned then knowing how to handle it like initiating an instant recall using process manufacturing ERP software.
Take a look at your current processes. Are you still relying on paper trails and manual checks? Can you trace any product batch within minutes? If these questions make you uncomfortable, it is time to schedule a consulting call with our industry expert at marketing@ebizframe.com who will guide you based on your manufacturing process, requirement, budget and most important future goals.
