Viewpoints on Innovation

Improving Traceability in CPG with PLM

IT Enablers Consumer Goods
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PLM for CPG companies is maturing to help manufacturers guarantee compliance and allow traceability back and forward from any lifecycle state of a product, ingredient or process from concept to commercially-available product.

From toxic ingredients in pet food to E. coli in spinach to lead paint on children's toys, no consumer packaged goods (CPG) company is immune to the growing risks of product contamination. Consumers want to purchase and use products with confidence and expect manufacturers to have and demonstrate complete control of their supply chains. When companies fail to quickly resolve product recalls, consumer confidence is shattered and enormous harm is caused to brand equity and a company's reputation.

The ability to respond quickly and resolve product contamination issues is determined by the ability to trace back through the manufacturer's supply chain to identify and isolate the ingredient issue. While manufacturers have made improvements in their supply chain governance (e.g. with the implementation of consistent sets of standards and terminology for batch control and the interface between enterprise and control systems), they struggle to automate the systems that manage product data from formula or recipe development through manufacturing and out to their raw material suppliers.

Originally published on October 2nd, 2008

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Topics: Compliance, CPG, IP, Manufacturing, Perspective, PLM, Traceability

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