Food Traceability Case Study

A UK food processing company handling 500+ product lines implemented end-to-end batch traceability on Dynamics 365 Supply Chain Management, achieving full regulatory compliance and dramatically reducing waste.

100% Regulatory Compliance
20% Waste Reduction
500+ Product Lines Tracked
<30 min Full Recall Capability

The Challenge

The food processor was managing traceability through a combination of spreadsheets, paper records, and a legacy system that couldn't keep pace with growing regulatory requirements. Key pain points:

  • Mock recall exercises took 3+ days to complete, far exceeding the regulatory target of 4 hours
  • Batch tracking was manual, with data entered retrospectively, creating gaps in the audit trail
  • Expiry date management was reactive, leading to 8-12% product waste from expired stock
  • Quality test results were recorded on paper, with no automated hold/release workflow
  • Supplier certifications tracked in spreadsheets with no automated expiry alerts

Before: Compliance Risk

Mock Recall Time3+ days
Product Waste Rate8-12%
Automated QC Decisions0%
Batch Tracking CoveragePartial
Paper
QC Records
Manual
Supplier Tracking

The Solution

Pargesoft implemented Dynamics 365 Supply Chain Management with advanced batch traceability and AI-powered quality management:

  • End-to-End Batch Tracking: Every ingredient, intermediate product, and finished good tracked from goods receipt to customer delivery with full forward and backward traceability.
  • Automated Quality Management: Quality orders auto-generated at critical control points. Test results trigger automated hold/release decisions via AI agent.
  • FEFO Inventory Management: First Expiry First Out logic enforced system-wide with AI-powered expiry prediction and proactive markdown recommendations.
  • Supplier Compliance Agent: AI agent monitors supplier certifications, auto-generates renewal requests, and blocks non-compliant suppliers from purchase orders.
  • Rapid Recall System: One-click recall capability that identifies all affected batches, customers, and delivery routes within minutes.

The Results

  • 100% regulatory compliance across all batch traceability and food safety requirements
  • Mock recall time reduced from 3 days to under 30 minutes
  • 20% reduction in product waste through FEFO enforcement and AI expiry prediction
  • Quality hold/release decisions automated for 85% of test scenarios
  • Supplier compliance monitoring fully automated with zero lapsed certifications since go-live

After: Full Compliance

Mock Recall
3 days
<30 min
Product Waste
8-12%
-20%
QC Automation
0%
85%
Batch Tracking
Partial
100%
Lapsed Certs
Unknown
0
100%
Regulatory Compliance
14 wk
Go-Live
Zero compliance incidents since go-live

Project Summary

IndustryFood Processing
Product Lines500+
Employees150+
PlatformD365 SCM
Duration14 Weeks
AI Agents3 Deployed
Warehouses4

Technologies Used

  • Dynamics 365 Supply Chain Management
  • D365 Quality Management
  • Warehouse Management
  • Copilot Studio
  • Power Automate
  • Power BI

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