How to Guarantee Packaging Compliance (Part 2 of 4)

Click here?for part one of this article.

PART TWO

WHAT’S AT RISK IF PACKAGING COMPLIANCE IS NOT ACHIEVED?

The practice of applying manufacturing codes, including GS1-issued GTIN and UPC codes, to products is widely adopted to create efficiencies in the global supply chain as well as to protect consumers, retailers and manufacturers in the event of recalls.

Supply Chain Efficiencies

Manufacturing codes have created the ability to capture, track, trace and audit product information at every step of the supply chain. This improves efficiencies and streamlines workflows as goods are passed between manufacturers, suppliers and retailers to consumers. In today’s high-tech world, suppliers and retailers have issued product identification requirements to primary manufacturers in order to streamline their own inventory management practices. In many cases, if a manufacturer cannot provide legible and perfectly scannable product information, they can be fined for noncompliance and the affected product is returned. If faced with a large amount of packaging compliance violations, a manufacturer's reputation is damaged and business is lost.

Product Recalls

Product recalls are expensive for manufacturers and can lead to lawsuits, fines from the Consumer Product Safety Commission and major expenses to mitigate damages. Even worse, product recalls of unsafe or defective products can result in severe illness, injury or even death.?

When utilized correctly, manufacturing codes can help pinpoint when and where a product was produced along with all raw (or sub-materials) used in the production to isolate compromised product in the event of a recall. Manufacturers can reference affected manufacturing codes in their request to return a product if they suspect safety issues or product defects. This allows suppliers, retailers and consumers to quickly identify and locate products of concern, helping to minimize the impact of a recall. If manufacturing codes are not legible, the affected product cannot be identified which increases the risk of further harm.

Retailer & Consumer Confidence

Both retailers and consumers rely on date codes to verify the shelf life of perishable goods. Retailers manage and rotate their inventory using product expiration date information as a guide. Likewise, consumers base their willingness to purchase products based on the expiration dates communicated on retail ready packaging. If a date code is missing or illegible, the product is less likely to be purchased. If this happens with enough frequency, retailers may return the impacted product and may even fine the supplier or manufacturer.

What’s at risk if packaging compliance is not achieved? A manufacturer’s bottom line, reputation, and consumer safety can all be impacted.

Our next installment will cover two key of four key factors to consider when trying to achieve packaging compliance.

Curious about which product coding technology is right for your application? Click?here?to find out!