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5 Ways to Manage Suppliers to Reduce Brand Damaging Recalls

By Sylvain Menard | March 21, 2018

We have worked with a number of Food Processing Manufacturers who've put a significant emphasis into reducing and minimizing product recalls using Microsoft Dynamics 365 for Finance and Operations (D365 F.O) to manage their supply chain processes. 

In 2015 there were 626 recalls in the US. More than a third of these recalls could have been avoided because they were allergen-related issues (milk, peanuts, eggs, wheat).

A 2016 Harris poll, damages to your brand because of a recall can include:   

  1. 55% of consumers would switch brands temporarily
  2. 15% would never purchase the recalled brand again
  3. 21% would avoid purchasing any brand made by that manufacturer

One of the key strategies in avoiding recalls involves gaining visibility into your supplier’s quality control processes and managing documentation related to these processes.

Preparing your organization with these 5 strategies to better manage suppliers can help prevent product recalls or minimize the recall impact if one does occur.

1. Supplier onboarding process – Below is an example of how set up a supplier onboarding process. Using the Microsoft Dynamics 365 Case Management tool, you can define and implement a supplier onboarding process where some specific audit and quality-related onboarding steps can be defined. By activating the (D365 F.O) workflow function, approval steps can be assigned to specific people or roles within your company (buyers, quality managers, accounts payable managers, etc.)

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2. Manage approved suppliers by purchased item – Once a supplier has been on-boarded, the vendor can be included in an Approved Vendor List. In Microsoft Dynamics 365, the purchase of certain items can be restricted to approved vendors in order to avoid the procurement of ingredients or packaging suppliers from companies that have not gone through a quality audit or onboarding process.

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3. Food safety certification tracking – In D365 F.O, the vendor profile can include various certifications for approved vendors. These certifications can be time-sensitive or subject to renewal. The actual certificate documents (e.g., PDF documents) can be attached to the vendor master record in D365 F.O providing you with a central repository for vendor and quality related documents.
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Also, for time-sensitive certifications, you can use a D365 F.O workspace to monitor certificates are due for a renewal.

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4. Electronically store Certificates of Analysis – Using the D365 F.O “Document Handling” feature, you can attach a supplier’s Certificate of Analysis document to the corresponding purchase order for easy retrieval in the event of a vendor audit or internal audit.

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5. Periodically validate supplier quality testing – While your ingredient or packaging vendors may supply certificates of analysis which include their quality test results, as a precautionary measure it is best to periodically validate the quality results using your internal quality department or a third-party QC testing company.

For internal tests that could be done e.g. every 3 months or every tenth shipment, you can use the D365 F.O Quality Control functionality where minimum samples and test results can be recorded and these will be directly linked to a vendor purchase order and receipt.

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If you would like to learn more about this topic and how Microsoft Dynamics 365 help's Food Processing Manufacturers get back in control of recalls, watch this video: Food Traceability: The Real (and Devastating) Costs of Not Investing in a Modern System.

 

eBook: Can You Survive a Recall?

 

About Sylvain Menard

Sylvain is an experienced Solution Consultant with a demonstrated history of working in the information and process manufacturing industry. With skills in Enterprise Software Development, Software Implementation, Microsoft Dynamics AX (now Dynamics 365) and Enterprise Asset Management Software, Sylvain maintains a strong background as an information technology professional.

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