Why is Lot Traceability a Vital Element of the Manufacturing Industry?Publish Date: March 28, 2023
Product recalls can be financially devastating for manufacturers, with reports indicating that a single recall can cost a company up to $10 million. The potential impact of even one instance can be catastrophic for a business. So, how can manufacturers protect themselves from such situations? One solution that many implement is Lot traceability in manufacturing.
Lot traceability is a process that allows enterprises to maintain the relationships between finished goods and batches of components or raw materials used in those goods. Manufacturers can quickly identify and address quality control issues before they escalate into costly recalls by tracking item movements and monitoring every stage of the production process, including shelf life.
What is Lot Traceability in the Manufacturing Industry?
Lot traceability is an essential process in the manufacturing industry that involves assigning a unique identifier to a group of items produced as a unit, along with the components or raw materials used in their manufacturing. The process aims to enable the tracing of goods across each production phase, from input materials to distribution and beyond, quickly and transparently.
Efficient Lot traceability allows all the concerned supply chain players to trace a batch in both directions, upstream to its components and manufacturing process and downstream to customers and distributors. It includes essential information such as the quantity of material used in goods creation, input material suppliers, the amount and time of supply, QC checks performed on the goods, the signing-off authority, distributors who received the goods from a batch and distributed them, and customers who bought the goods from the distributors.
Lot traceability is essential for manufacturers to ensure product safety and quality control. It helps them to quickly identify and address quality control issues before they become widespread, reduce the risk of costly recalls, enhance customer satisfaction, and protect their business from potential financial ruin.
The most significant elements of a valuable and transparent lot traceability system include the following:
- The quantity of material used in goods creation
- Input material suppliers, the amount and time of supply
- QC checks of the goods and the signing-off authority
- Distributors, who received the goods from a batch and distributed them
- Customers who bought the goods from the distributors
- Benefits of Lot Traceability in Manufacturing
Benefits of Lot Traceability in the Manufacturing Industry
Lot traceability is essential for manufacturers to ensure product safety and quality control, optimize production processes, and protect their business from potential financial ruin. The benefits of lot traceability make it more relevant and imperative than ever in today’s business environment. Here are some compelling reasons why Lot Traceability is more relevant and imperative than ever
- Lot tracking helps improve product quality. Manufacturers naturally remain more cautious, as the lot tracking system can trace every element.
- Companies can detect manufacturer defects early and avoid rejections or recalls.
- End-to-end traceability helps manufacturers and investigators identify loopholes and conduct a root-cause analysis of the error.
- Comprehensive traceability optimizes inventory and controls the latter’s costs.
- Improved product quality helps avoid scrutiny and fines from the FDA or USDA.
Critical components of a Lot traceability system should include lot creation, tracking, traceability, and reporting. It can help provide complete traceability of the products, enable quick recalls, and aid companies in regulatory compliance.
Looking to Optimize Lot Traceability in Manufacturing? Choose YASH’s QAD Offerings!
As a manufacturer, you may seek ways to reduce manual processes and streamline documentation related to lot traceability. At YASH, we offer highly sophisticated WIP lot traceability solutions that can integrate seamlessly into your manufacturing ecosystem.
Our QAD offerings provide customizable ERP and supply chain solutions that can improve your supply chain capabilities, enhance efficiency, and optimize traceability. Our WIP Lot traceability solutions are tailored to meet the specific needs of different manufacturing domains, ensuring you receive the optimal solution for your unique business requirements.
By partnering with us, you can reduce costs in the long run, enhance client satisfaction, and gain a competitive edge in the market. Click here to learn more about our QAD solutions and how we can help you optimize your lot traceability processes.
Global Head-QAD CoE
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