Why Traceability Is Still Challenging Manufacturers

Recalls in food have a substantial impact on manufacturers’ bottom lines. According to AMR Research, when a recall happens, the average cost of a write?off is $20 million, with 14 percent of companies having write?offs in excess of $50 million.

Timely access to lot trace data is essential, as is having the traceability tools that enable manufacturers to rapidly pinpoint the source of contamination and quickly respond to a customer or distributor’s concerns. According to an Aberdeen Group report, best?in class manufacturers have track and trace response times that are 43 hours quicker than the industry average. When it comes to the public scrutiny and spotlight that accompanies a food safety incident, time is truly of the essence. no surprise then that in the wake of many headline-grabbing food contamination events that traceability planning and technology have made their way onto the executive?level priority list.

Why then is traceability still a challenge for many manufacturers? The main reasons are complexity, change management and cost.

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