Food fraud is the deliberate substitution, addition, or tampering of food with the intention to deceive consumers. Food fraud can be used as an umbrella term covering different types of food crime offences which covers all organisations that are part of the production process – growers, manufacturers, suppliers, and retailers. Such offences include the substitution of ingredients, lowering the quality of ingredients, additions to foods such as water or fats which have no nutritional value or passing off a product as organic but not meeting organic standards.
Food fraud occurs when discrepancies are found in food supply chains, including harvesting, processing, storage, and transport. These discrepancies often go unnoticed because most companies use outdated methods to ensure the quality of their products.
Top food and beverage companies are increasingly demanding traceability as a way of preventing food fraud. While the focus of traceability is on specific ingredients, lot identification technology can allow companies to track not only ingredients but also the final packaged product in the supply chain, from the farm through to consumption on the retail shelf.
Implementing a capable enterprise resource planning (ERP) system is the best way for food companies to identify food fraud. In an ERP system, all aspects of food production are connected together. If a discrepancy is found in one part of the system, it will be reflected in other parts of the system as well. This integration makes it easy for companies to detect fraud and prevent liability lawsuits from occurring.
By joining forces with an ERP system, food companies can better identify fraud at any point during production, processing, or delivery. If the database is integrated with a scanning system, every time a product is scanned, the details of the transaction will be cross-referenced against the wholesaler’s pricing structure for that inventory item. As a result, audits that were once painful and difficult to conduct can now be done without significantly impacting productivity.
Food fraud is a real problem and one that must be solved if food companies are to regain the public’s trust. By adopting an ERP system (enterprise resource planning system), food companies will know instantly where their products are at any point in time.
By adopting the latest ERP solution, food fraud and contamination can be eliminated through real-time data analysis and automated alerts, providing peace of mind for both manufacturers and consumers.
Designed with your industry in mind, Signum’s SAP Business One Industry Edition for Food and Beverage enables you to trace the path of ingredients, assets, and other movements from supplier to consumer. Our food and beverage solution helps you identify food fraud issues from the ground up.
SAP Business One provides food companies high quality information to help them manage and understand the risks associated with their business. With complete traceability, safeguarding the authenticity and quality of products becomes much easier as records can be tracked back to suppliers and prior lot information. SAP Business One helps you maintain optimum levels of stock to eliminate waste and ensure competitiveness in the marketplace.
Make food fraud a thing of the past. Get the most efficient software and the most experienced team in the industry. Contact us today to get started.