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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