ERP software protects manufacturers’ profits from traceability and compliance issues throughout the production process.

1. Traceability and Process automation includes
Compliance: How capturing essential information
about the source, storage,
ERP Can Help treatment and testing of materials
through the manufacturing cycle

2. Take Control of Quality
Accountability in manufacturing isn’t an optional extra. Whether
you’re making sauces, sofas or sports cars, you need to know
exactly what’s gone into your product.
You must be able to track back every ingredient/component to its
source. Who might want to know?
› You › Industry regulators
› Your customers › Insurers
› Trading standards
There were almost 400 consumer product recalls in 2011 in the UK
(Source: RecallUK). This is just a fraction of the massive volume of
products that failed to make it through multiple quality control tests.
Spot audits are not uncommon.
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3. Expensive mistakes
Over £20 million - the estimated cost to Cadbury of recalling over 1
million chocolate bars in 2006.
£16.9 million - the estimated cost to Britvic, according to some
reports, of recalling all its Fruit Shoot drinks in 2012.
Undisclosed - the cost to Toyota of recalling 7.4 million cars
worldwide in 2012, to fix a power window defect. Coming soon after
a 2009 recall of 12 million vehicles, the firm refused to give
estimates of costs.
General Food Law Regulation (EC) 178/2002 requires that
traceability records be made available to the competent authorities
on demand.
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4. Controlling Traceability Costs
Every product failure costs money and, if it occurs after the product
has gone out into the market, the impact on profits can be huge.
The costs of product failure, at any stage in manufacturing, include:
› Time spent tracing the problem
› Cost of actions to correct the problem
› Lost profits from potential sales
› Damage to reputation
There’s also a cost to keeping the detailed records required for
traceability and compliance. Manual recording is an expensive use of
valuable resources. By automating much of the material and product
tracking, ERP systems make the record keeping process quicker and
easier, reducing the scope for error.
Electronic storage of conformance certificates is easier today than
ever before.
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5. Quality Control At Your Fingertips
The more control you have over the quality of data available about
your products, the more control you have over your costs and your
reputation. If you supply companies like Rolls Royce or Tesco,
traceability back to the casting or ingredient is a prerequisite to doing
business.
ERP systems help you achieve that control. Automated data
collection and validation, real time updates and fast retrieval of
information provide you with reassurance that the information is
there if it’s needed.
By holding comprehensive data on the sources and movements of all
your materials and products, ERP software helps manufacturers to
solve the problems of traceability, compliance, accountability and for
some liability.
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6. Takeaways
Questions an ERP system can answer at the touch of a button, and how it’s
achieved:
› Where did it come from? Data captured as raw materials are
delivered
› How old is it? Automated alerts provide advance warning of
product expiry
› Where was it stored? Stock rotation is monitored automatically
› When was it tested? Automated recording of realtime events
› Who issued the certificates?
58 % of businesses see a role for ERP in compliance in
the near future.
Source:
http://www.computing.co.uk/ctg/feature/2045514/computing-research-benefits-erp-software#ixzz2EjmAGHbT
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