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ROI from ESC™ Features
Recall Management
With the combination of a serialization database and EPCIS-based tracking services, it is possible to avoid blanket recalls by locating recalled products. Recalled products can be located by lot number, by the specific packaging line, by range of serial numbers, etc.
The manufacturer can alert the appropriate parties, and solely the appropriate parties, about the need to recall products. Aside from the obvious savings of not having to do a general recall, the manufacturer significantly reduces its overall liability. Consumers directed by manufacturers to recall products will assist in reducing product liability. Additionally, the manufacturer's own database would contain information on the origin of certain offending raw materials if that were the ultimate cause of the recall.
Companies providing raw materials for inclusion in the finished goods of other manufacturing companies will benefit from the visibility of their raw materials throughout the supply chain. In the event of a recall, these raw materials providers would be able to pinpoint the exact channels of affected products, thus eliminating the need for a costly universal recall by every supply chain partner.
Returns Processing
The Returns Processing module easily interfaces with Electronic Data Interchange (EDI) systems. The transactions in these inventory systems attempt to track inventory at the wholesaler distribution level and sales to the retail level. They also include incoming purchase orders from wholesalers. The information included in these systems should allow the ability to see products at warehouse, retail, and institutional outlet levels which in turn would provide information on order history, days-inventory, sales, and returns.
The traditional EDI system is fairly inefficient due to irregularities in reporting, and anomalies can only be clarified through unit level track and trace. In most industries, even marginal reduction of returns can have an enormous impact on profitability.
Other Industry Specific Benefits
Important benefits specific to each industry exist in addition to Returns Processing and Recall Management. For example, in the Pharmaceutical Industry, Diversion Detection and Chargeback Reconciliation are very attractive features to Pharmaceutical Manufacturers. Industry specific ROIs are discussed in the forum for that particular vertical market.
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Components of the ESC™
System
Return on Investment (ROI)
and Enhanced Profitability
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