{"id":9460,"date":"2020-03-19T05:59:07","date_gmt":"2020-03-19T05:59:07","guid":{"rendered":"https:\/\/eu.syspro.com\/blog\/effective-traceability-an-insurance-policy-for-the-electronics-industry\/"},"modified":"2025-03-26T15:48:13","modified_gmt":"2025-03-26T13:48:13","slug":"effective-traceability-an-insurance-policy-for-the-electronics-industry","status":"publish","type":"post","link":"https:\/\/eu.syspro.com\/blog\/erp-for-manufacturing\/effective-traceability-an-insurance-policy-for-the-electronics-industry\/","title":{"rendered":"Effective Traceability \u2013 An Insurance Policy for the Electronics Industry"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 3<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p><strong>Product recalls are one of the biggest risks that\u00a0manufacturers\u00a0have to\u00a0face.<\/strong> According to the\u00a0<strong><a href=\"https:\/\/www.agcs.allianz.com\/news-and-insights\/reports\/product-recall.html\">insurance industry<\/a>,<\/strong> the average cost of product recall claims is over US $1 million. Product recalls in the electronics industry were\u00a0<strong>15%<\/strong>\u00a0of all recalls in the EU in Q1 2019, and 29% in the US.<\/p>\n<p><!--more--><\/p>\n<p>As regulatory requirements expand in the <a href=\"\/infographic\/syspro-traceability-for-electronics-manufacturers-infographic\/\"><strong>electronic industry, manufacturers<\/strong> <\/a>are finding it necessary to set up a system to track and trace all items used in the production process, and a recall management system that enables them to quickly access the critical information needed to track a suspect product.<\/p>\n<h2><strong>The Need for Traceability<\/strong><\/h2>\n<p><strong><a href=\"\/business-software\/business-needs\/traceability-erp-software\/\">Traceability is the ability to trace\u00a0the movement of components<\/a> <\/strong>through the supply and manufacturing chain to customer delivery\u00a0and\u00a0identify the\u00a0components and the locations associated with their movement.\u00a0It\u2019s becoming increasingly important for manufacturers to have business systems in place that can provide full control over product traceability to ensure compliance. The ability to speedily locate specific lots of finished goods for a defective part is a key requirement. Once identified, a product recall needs to be issued on that lot.<\/p>\n<h2><strong>Implementing Traceability<\/strong><\/h2>\n<h3><strong>Effective traceability is implemented by tying together\u00a0a number of\u00a0different components:<\/strong><\/h3>\n<ul>\n<li>A warehouse management system with <a href=\"\/business-software\/business-needs\/lot-traceability\/\"><strong>functionality to track serial numbers, lots and bin locations<\/strong><\/a> to provide better visibility and management of serialized stock items in specific warehouses<\/li>\n<li>Inventory management that records traceability and quality data of materials and products through the supply chain<\/li>\n<li>A manufacturing operations management system that allows you to measure and improve product quality<\/li>\n<li>A customer complaints capability for capturing, managing and resolving customer issues, including the review and escalation of product defects to enable recalls and prevent future problems.<\/li>\n<li>Product recall and mock recall capability that enables compliance for industries that need to manage the recall process as well as testing the system through mock recalls<\/li>\n<\/ul>\n<p>Getting these as separate disparate systems invites a whole range of problems, including integration and management of upgrades. That is why using an ERP solution which has the components as standard is often preferred as those problems are resolved.<\/p>\n<p>In industries with strict regulatory requirements, many if not\u00a0all of\u00a0these solutions are needed to achieve a formal quality accreditation.<\/p>\n<p>Manufacturers also need to hold a long history of inventory and shop floor data due to legislation that compels manufacturers to keep that data for a period after products have been sold.<\/p>\n<h3><strong>The traceability system needs to be able to answer common questions, such as:<\/strong><\/h3>\n<ul>\n<li>Was the product assembled with a defective component?<\/li>\n<li>Was the product assembled with a compliant process?<\/li>\n<li>Is the whole manufactured order affected, or is it limited to a specific component, batch or lot?<\/li>\n<li>What is the overall production history of the item?<\/li>\n<\/ul>\n<h2><strong>The Benefits of Traceability<\/strong><\/h2>\n<p>The\u00a0data that\u00a0traceability provides can help\u00a0operations and engineering teams to find and fix production problems,\u00a0and\u00a0it also helps\u00a0to maintain good customer relationships.\u00a0The data gained from traceability also drives process and product improvement over time.<\/p>\n<p>There are specific traceability systems available, but an integrated traceability functionality as part of an ERP solution allows a company to easily make reporting data available as well as having a single source of all critical business information.<\/p>\n<p>Due to\u00a0growing regulations, including warranties and returns,\u00a0electronics producers have a lot to gain by implementing\u00a0a\u00a0traceability\u00a0and product recall solution. Among the benefits of traceability are the improvement of the production process, control over the supply chain, reduction in\u00a0the risk of defects, and improved customer service.\u00a0<strong>It\u2019s an insurance policy that every electronics manufacturer should have.<\/strong><\/p>\n<h3><a href=\"\/ebook\/how-to-manage-traceability-and-product-recalls-for-electronics-manufacturers\/\">[Download The Free eBook \u2013\u00a0How to Manage Traceability and Product Recall for Electronics Manufacturing]<\/a><\/h3>\n<h3><img fetchpriority=\"high\" decoding=\"async\" class=\"wp-image-4792 alignright\" src=\"https:\/\/eu.syspro.com\/blog\/wp-content\/uploads\/2021\/03\/How_to_Manage_Traceability_and_Product_Recall_for_Electronics_Manufacturing.jpg\" alt=\"How_to_Manage_Traceability_and_Product_Recall_for_Electronics_Manufacturing\" width=\"335\" height=\"227\" \/><\/h3>\n<h3><strong>In this Guide, we provide more information on:<\/strong><\/h3>\n<ul>\n<li>Electronic industry recall trends and causes<\/li>\n<li>Legislative considerations for the Electronics Industry<\/li>\n<li>Checklist for implementing a robust traceability system<\/li>\n<li>Checklist for planning for and managing recalls<\/li>\n<li>ERP Checklist<\/li>\n<\/ul>\n<h3><\/h3>\n<p><!--HubSpot Call-to-Action Code --><span id=\"hs-cta-wrapper-fb982d05-9297-428b-99c7-6299fe0f8041\" class=\"hs-cta-wrapper\"><span id=\"hs-cta-fb982d05-9297-428b-99c7-6299fe0f8041\" class=\"hs-cta-node hs-cta-fb982d05-9297-428b-99c7-6299fe0f8041\"><!-- [if lte IE 8]>\n\n\n<div id=\"hs-cta-ie-element\"><\/div>\n\n\n<![endif]--><a href=\"https:\/\/cta-redirect.hubspot.com\/cta\/redirect\/239680\/fb982d05-9297-428b-99c7-6299fe0f8041\" target=\"_blank\" rel=\"noopener noreferrer\"><img decoding=\"async\" id=\"hs-cta-img-fb982d05-9297-428b-99c7-6299fe0f8041\" class=\"hs-cta-img\" style=\"border-width: 0px;\" src=\"https:\/\/eu.syspro.com\/blog\/wp-content\/uploads\/2021\/03\/fb982d05-9297-428b-99c7-6299fe0f8041.png\" alt=\"Download Now\" \/><\/a><\/span><script charset=\"utf-8\" src=\"https:\/\/js.hscta.net\/cta\/current.js\"><\/script><script type=\"text\/javascript\"> hbspt.cta.load(239680, 'fb982d05-9297-428b-99c7-6299fe0f8041', {}); <\/script><\/span><!-- end HubSpot Call-to-Action Code --><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Product recalls are one of the biggest risks that\u00a0manufacturers\u00a0have to\u00a0face. According to the\u00a0insurance industry, the average cost of product recall claims is over US $1 million. Product recalls in the electronics industry were\u00a015%\u00a0of all recalls in the EU in Q1 2019, and 29% in the US.<\/p>\n","protected":false},"author":190,"featured_media":9461,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[21],"tags":[45,281,276,25],"class_list":["post-9460","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-erp-for-manufacturing","tag-business-software","tag-erp-and-digitization","tag-erp-and-technology","tag-technology-or-enterprise-technology"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Effective Traceability | Electronic Manufacturing Industry | SYSPRO 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For over 30 years, Chris has been responsible for selling, implementing and supporting the SYSPRO offer across a range of global markets. During this time, he has seen first hand how the system could empower end users, and this led to successful career as a distributor and then Director of the largest SYSPRO reseller listed on the London Stock Exchange. Today Chris is leveraging his experience to implement best practice SYSPRO sales strategies at K3, which is based in the United Kingdom. His vision is to ultimately help customers to gain competitive advantage by building their digital resilience.","sameAs":["https:\/\/www.linkedin.com\/in\/cjburnett01\/"],"url":"https:\/\/eu.syspro.com\/blog\/author\/chris-burnett\/"}]}},"metadata":{"_yoast_wpseo_focuskw":["Traceability for the Electronics Industry"],"_yoast_wpseo_focuskw_text_input":[""],"_yoast_wpseo_title":["Effective Traceability | Electronic Manufacturing Industry | SYSPRO ERP"],"_yoast_wpseo_metadesc":["Get the Latest Insights Today on Traceabilty for the Electronics Industry, and What ERP System can Effectively Manage Product Recalls."],"_yoast_wpseo_content_score":["60"],"_yoast_wpseo_primary_category":[""],"_yoast_wpseo_linkdex":["59"],"_yoast_wpseo_metakeywords":[""],"_wp_page_template":["default"],"_thumbnail_id":["9461"],"_edit_lock":["1742996762:224"],"_edit_last":["224"],"_webdados_fb_open_graph_specific_image":[""],"_webdados_fb_open_graph_specific_title":[""],"_monsterinsights_sitenote_active":["0"],"_yoast_wpseo_estimated-reading-time-minutes":[""],"_elementor_page_assets":["a:0:{}"]},"_links":{"self":[{"href":"https:\/\/eu.syspro.com\/blog\/wp-json\/wp\/v2\/posts\/9460","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/eu.syspro.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eu.syspro.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eu.syspro.com\/blog\/wp-json\/wp\/v2\/users\/190"}],"replies":[{"embeddable":true,"href":"https:\/\/eu.syspro.com\/blog\/wp-json\/wp\/v2\/comments?post=9460"}],"version-history":[{"count":1,"href":"https:\/\/eu.syspro.com\/blog\/wp-json\/wp\/v2\/posts\/9460\/revisions"}],"predecessor-version":[{"id":10888,"href":"https:\/\/eu.syspro.com\/blog\/wp-json\/wp\/v2\/posts\/9460\/revisions\/10888"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eu.syspro.com\/blog\/wp-json\/wp\/v2\/media\/9461"}],"wp:attachment":[{"href":"https:\/\/eu.syspro.com\/blog\/wp-json\/wp\/v2\/media?parent=9460"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eu.syspro.com\/blog\/wp-json\/wp\/v2\/categories?post=9460"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eu.syspro.com\/blog\/wp-json\/wp\/v2\/tags?post=9460"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}