Spoilage is a cost that any food selling business counts on, but it’s not the only way that spoiled food can create huge costs for a business. If a business makes a mistake and sells spoiled or rotten food to consumers they can be fined for violating FDA and consumer protection laws, and they can face lawsuits from consumers if they eat spoiled food and become sick. Government fines can be hefty, and the cost of defending against a consumer lawsuit can cost quite a bit as well. In addition to the big fees associated with defending the company in a lawsuit there is also the potential bad press that could become a public relations nightmare for the business.
Costs Of Food Spoilage for Manufacturers
A business that routinely sells expired or spoiled food also runs the risk of destroying the relationships that they have built with other businesses that buy large quantities of food to use in their products. Companies that sell food to restaurants, cafeterias, or other businesses that use large amounts of food can’t take the chance of using spoiled food in their products because that would open up their business to lawsuits as well.
In the age of “cancel culture” and social media it can be very difficult for a business to recover from “going viral” if they are caught selling food past its expiration date. The ongoing damage to the brand identity could do more damage to the brand than a lawsuit in the long run. Making sure that the food coming from your warehouse is always fresh and safe is the best way to protect your brand identity online.
Why Food Manufacturers Need Automated Warehouse Management
Making sure that the food that is sold is still fresh is something that every food manufacturer needs to make a priority. However, it can be tough to manage inventories full of fresh food because there are so many factors that impact how long the food stays fresh. Using an automated warehouse management system is the best way to manage large warehouses full of perishable food. Automated warehouse management systems have the ability to update inventory in real-time, track statistics, and trace every step along the supply chain, from farm to table.
Switching to an automated warehouse management system allows food manufacturers to monitor expiration dates, track incoming shipments and ensure orders are going out swiftly. This ensures that when food products get to consumers, they are still fresh and safe to eat.
An automated warehouse management system will also ensure that you don’t end up with hefty fines for selling food that has spoiled and that you don’t face lawsuits from angry customers if they receive or eat food that has spoiled. The cost of switching to an automated warehouse management system is much less than the cost of the consequences of selling spoiled food.
Automated Warehouse Management System for SAP Business One and Macola Software
WiSys Agility solutions have been designed to achieve efficient warehouse management and automated inventory management. Are you trying to cut costs in your warehouse? Contact us to learn more about automated warehouse management.