How Supply Chain Visibility Fights Recalls and Improves Quality Control

To ensure a standard that protects product quality, prevents recalls and strengthens reputation, manufacturers must leverage technology that promotes full visibility and quality control across the entirety of their supply chain.

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In recent years, manufacturers have encountered significant challenges in navigating industry turbulence. One such consequence has been an uptick in product recalls. In the United States alone, recalls increased 10.6% year-over-year in 2023, marking a seven-year high, according to Sedgwick’s 2024 State of the Nation Recall Index report. Recall incidents are not siloed and continue to surge across various industries, including automotive, consumer products, pharmaceuticals, food and beverage, and medical devices. Of these, pharmaceuticals and consumer products are experiencing their highest recall rates in a decade. 

Among recent recalls, contamination in often-purchased food items, such as Listeria in shredded cheese products, have garnered widespread attention, underscoring the critical importance of robust quality control measures in manufacturing operations. Lack of quality control results in material wastage, heightened labor expenses, delays in production, and the risk of additional product recalls. Moreover, the ramifications of mistakes and inaccuracies undermine customer confidence and damage brand reputation, carrying long-term repercussions that extend beyond the specific product.

Industry disruptions and heightened demand amplify production pressures, raising the risk of potentially compromising product safety standards. Consequently, the surge in recall events reflects the challenges manufacturers face in maintaining stringent quality control measures amid inflation and other industry upheavals. Addressing these challenges requires manufacturers to strengthen quality assurance protocols, invest in robust supply chain management, and prioritize consumer safety throughout the entire production process.

Simply put, it’s time for manufacturers to act. To ensure a standard that protects product quality, prevents recalls, and strengthens reputation, manufacturers must leverage technology that promotes full visibility and quality control across the entirety of their supply chain.

Leveraging technology to promote visibility

Manufacturers must leverage technology that can help them navigate turbulent times. One such solution is an enterprise resource planning (ERP) system. By providing end-to-end visibility into the supply chain, ERP solutions enable manufacturers to track and monitor various aspects of production, procurement, and distribution processes in real-time. These systems integrate modules for inventory management, batch tracking, and product traceability, empowering manufacturers to uphold rigorous quality control standards and comply with regulatory requirements effectively.

Unlike outdated pen and paper approaches, or siloed disparate systems, an ERP delivers a centralized solution consolidating information into a single source of truth that promotes end to end clarity across a manufacturer’s supply chain. Rooting production practices in visibility offers a trustworthy layer for manufacturers, as they seek the quality control that prevents recalls and the negative consequences associated with them. Should a recall be required, ERP systems’ traceability helps identify the source of any issues and facilitates recalls if necessary, minimizing the potential cost of being wrong. Technology creates visibility that stands as the pillar in which product quality trust is based.

Improving operational clarity to ensure quality

Integrating ERP systems with manufacturing processes translates to improved assurances on quality control and product integrity. By embracing ERP solutions alongside advanced analytics and automation tools, manufacturers can enhance agility, resilience, and enhance their competitive advantage. Crucial strategies include strengthening supply chain visibility, implementing robust risk management protocols, and fostering a culture of continuous improvement and innovation.

Urgency in proactive measures

Regulatory bodies such as the FDA, FTC, and CPSC will continue to scrutinize the quality of products, putting additional pressure on manufacturers to ensure quality. The trend of increasing fines and regulatory actions can be expected to persist, emphasizing the critical importance for companies to prioritize quality control measures across all aspects of their operations. To do this successfully, proactivity is essential, and technology is a powerful ally for manufacturers. Through an ERP solution and a culture of proactive innovation, manufacturers can not only navigate current turbulence but also position themselves to thrive amid evolving market dynamics, emerging stronger and more resilient than before.

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