Legislation and regulation are in almost continual movement, afected by initiatives from VAT changes to SEPA. They often relate to financial administration, but certain industries are also heavily affected by regulations in other areas of their business. Retailers and suppliers often then make additional mutual agreements as to how rules can be best implemented to streamline the supply chain. Given the significance of proper rule application, how can businesses ensure they stay fully in-line and up to date?
He we look in at some example requirements and agreements for producers and wholesalers, and in turn the role business software can – and should – play in supporting their implementation.
HACCP – risk management for the food production industry
HACCP is the abbreviation for Hazard Analysis and Critical Control Point. Manufacturers of foodstuffs are obliged to analyse and control risk at every stage of their production processes. HACCP is system for designing and managing this process, but not a handbook outlining the specific activities required. Each business needs to align the theory with their own, specific production environment. It’s a methodology for identifying potential issues in their preparation and processing activities, and ensuring that awareness then enables effective management of that potential risk.
In terms of software supporting the process, there are 7 key areas where ERP can empower this particular process:
• Create a complete and accessible inventory of all potential risk
• Set out a confirmed overview of critical check points (CCP)
• Determine the critical margins per CCP
• Set out how the CCPs will be monitored
• Set out the steps to address and reduce increased risk per CCP
• Create periodical checks to review the effectiveness of the HACCP strategy
• Manage related information flows, registration and documentation
The Food and Drug Administration (FDA)
The FDA is a federal institution responsible for the quality and safety of foodstuffs, food additives, medicines and medical products, blood supplies, equipment involving electromagnetic radiation, and cosmetics – some of these areas involving extremely strict regulation. In addition to American businesses, the rules also apply to international companies that wish to export to the US. The standard is also becoming increasingly adopted by other countries as a best practice for production in these industries.
When it comes to managing an operation compliant with FDA standards, the following are crucial: Can everything be fully traced from beginning to end and through every process? And are you able to issue a recall report within a few seconds once a problem has been identified?
ERP software can play a major role in ensuring the answers are yes, particularly when your system includes bar code scanners to support the receipt, sending and production of goods. ERP can also support you with functionality to manage quality control and ensure effective data capture throughout the processes involved. When formulas or recipes are properly safeguarded by your management systems, it’s a major step to ensuring only approved products are created.
New legislation for labeling foodstuffs
At the end of 2014, new legislation will be introduced regarding labeling of foodstuffs – affecting producers, wholesalers and retailers. New information will include, among other things, clear details over energy content, (saturated) fat, carbohydrates, sugar, protein and salt. Allergy information also needs to be displayed, including on non-packaged goods. And for pork, poultry, goat and mutton products, it’ll be necessary to display the country of origin. Trustworthy, non-misleading information must be clearly visible to all potential consumers.
It promises to be a real challenge for traders and producers to get all the necessary information clearly displayed and printed on one label. They’ll also need to make the item information digitally available via online portals to enable optimal communication with their consumers.
As a result of these legislative changes, a range of mutual agreements will be arranged between businesses or fostered via relevant third parties to streamline the process of change. They’ll potentially have less to do with increasing safety per se, and more to do with ensuring processes involving multiple stakeholders are efficiently organized and executed. Examples of where ERP software can help include EDI communication and the management of SSCCs.
Using Electronic Data Interchange (EDI)
EDI is a standard for the electronic exchange of specific business documents, including orders, accounts and specific messages or confirmations – used particularly within the retail and logistics sectors. With the documents needing to meet certain template criteria, the format is normally used for recurring transactions. Many large (international) retailers have the use of EDI as a precondition for partners, making it compulsory for the transferring of orders, delivery notes and invoices. As such, it’s important to ensure that your business software can support the method.
Serial Shipment Container Code (SSCC)
SSCC is a standardized international send code that suppliers can attach to their products in the form of a barcode. It’s particularly useful in terms of track and trace through the supply chain. It’s compatible with most ERP and WMS software systems, both for receivers and suppliers. These integrated solutions offer the possibility to, among other things, receive a despatch note, save it and couple the information to a SSCC-code. When the pallet is received, the warehouse worker can scan the delivery and immediately see in the WMS which articles are contained in the shipment.
Comply with every rule
In short, there are a lot of legal and industry related standards that potentially need to be followed by producing and trading companies. You could choose to manage these processes by collecting and controlling all the appropriate information in your business by hand. This is however, both time consuming and prone to error.
Instead, ensure your ERP is giving you the assistance of which it is capable. If there is a large amount of data that needs to be recorded and compiled, if there is an urgent recall, or if a regulatory body requests specific information, it’s essential that your business software gives you the right support. The right system has the capability to record and control your data in an efficient and consistent manner, and give access to the information you need quickly and accurately whenever that might be necessary.
via Business 2 Community http://ift.tt/1hxHqZ3
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