Spoilage is a cost that any food manufacturer counts on, but it’s not the only way that spoiled food can create huge costs for a business.
Legal Costs of Selling Spoiled Food
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.
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 doing something like 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 safe and fresh is the best way to protect your brand identity online.
How a Warehouse Management System Helps Manage Food Spoilage
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. Food manufacturers need a warehouse management system that updates inventory information in real-time, tracks expiration dates and traces the movement of each item from when it arrives in the warehouse until it is delivered to the customer.
Switching to an automated warehouse management system allows food manufacturers to keep a close eye on expiration dates, track incoming shipments, make sure shipments are going out swiftly, and generally manage the food inventory to make sure that the food is getting where it needs to go while it is still fresh.
A warehouse management system will also ensure that you don’t end up with hefty fines for selling food that has spoiled and don’t have to 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 if you don’t make changes to your current inventory management process and your business ends up selling spoiled food as a result.
Automated Warehouse Management for SAP Business One and Macola Software
An automated warehouse management system is the key to business success and growth in the world today. Start using an automated system and you will be amazed at the results in your day to day operations. Contact us today to learn more!