Horse meat in the supply chain, false claims that food is organic – such things add an extra layer of complexity to being a food and beverage company. With organic and eco-labeled food products commanding a premium price, instances of food fraud, such as contamination and mislabeling, are common. A prime example is the 2016-2017 shipment of over 16 metric tons of soybeans that arrived in California from Ukraine via Turkey that were fraudulently labeled “organic.”
In the organic food market segment, where it’s difficult to identify which products are genuinely organic, trust in your brand name is paramount. Your customers rely on you to protect them from risk. Consumers increasingly scrutinize labels promoting ‘organic’ and ‘farm-to-fork’ sourcing, while many retailers cannot verify the real point of their products’ origins. While tier 1 and some tier 2 suppliers may be known to retailers, their view into tier 3 suppliers and beyond is often obscured.
SAP Business One provides strong batch and lot traceability features so food and beverage companies can avoid the damage caused by dishonest suppliers or those who unknowingly pass on fraudulent products. With electronic, on-demand traceability incorporated into SAP Business One, a product’s organic status is captured at the point of purchase and recorded against a specific batch/lot as part of the quality assurance process. This information is available throughout the logistics flow in the warehouse and used as selection criteria for choosing the correct product to meet customer requirements.