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Digital traceability
Strengthening safety in 3PL co-packing operations
In today’ s fast-moving consumer goods( FMCG) environment, contract packing has become a vital service in the supply chains of FMCG brands, including third-party logistics providers( 3PLs) offering value-added services( VAS) such as co-packing. While speed, flexibility, and cost-efficiency are often top of mind for these 3PLs, an often-understated measure of excellence is safety- particularly in the form of traceability and recall readiness.
For 3PLs that offer co-pack as a VAS, the rising demands from FMCG customers, coupled with stringent regulatory oversight and heightened public sensitivity around product recalls, are prompting a reassessment of traditional operational models. Paperbased tracking, fragmented systems, or reliance on spreadsheets are no longer adequate when it comes to ensuring robust traceability- a cornerstone of consumer safety and brand protection.
Why traceability is a safety issue, not just a compliance check box
In the past, traceability was often regarded as a box-ticking exercise tied to regulatory compliance. Today, it has evolved into a critical safety function. When a product needs to be recalled, the speed and precision with which a 3PL can trace affected SKUs, identify the source of the issue, and isolate impacted lots can significantly reduce the scale of risk, both to consumers and to the brand customer.
Without accurate, real-time visibility into materials, production runs, and labor on the shop floor, contract packers leave themselves and their customers vulnerable to risk. A single missed batch number, an undocumented quality control step, or a manual input error can trigger product quarantines, recalls, or worse- consumer harm. In this context, traceability isn’ t just about tracking; it’ s about enabling immediate action, and operational agility that puts safety at the forefront.
The cost of inadequate recall readiness
The financial implications of a recall are well understood, from direct logistics costs to reputational damage and lost business. But for co-pack operations within 3PL facilities, the risks can be more acute.
These operations often manage multiple products, brands, and configurations simultaneously. A single facility may be switching between snack packs for one brand and seasonal gift boxes for another, and often within the same day. With such high variability, the margin for error increases, and so does the complexity of maintaining batch-level traceability. Moreover, FMCG brands are increasingly holding their supply chain partners accountable for recall readiness. A delay in response or gaps in traceability data can erode trust and jeopardize long-term contracts.
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