By their nature, consumer packaged goods (CPG) are everyday products people use. Toothpaste, soda, and tissues are a few examples. What they all have in common is that they are frequently used and need to be bought regularly. However, some are more critical and digestible, meaning more regulations and standards guide production and transportation. This is why compliance audits have become necessary in CPG logistics.
They serve as guard rails protecting companies and consumers. While compliance audits in CPG logistics are mandated, they help ensure that only the right products get to the market. Considering the increasingly stringent regulatory landscape and its many complications, CPG logistics operations face the constant challenge of maintaining compliance across various fronts, such as food safety and environmental regulations.
This is where compliance audits play a significant role. They ensure that CPG logistics businesses or operations can reduce risk and stay within the bounds of the law. The companies and people involved can spot potential risks and problems and take relevant steps to manage them before they attract fines and/or other penalties.
Because consumer packaged goods are so important to consumers and pose numerous health risks, the CPG logistics sector and its various operations are subject to a wide array of regulations. These can vary based on the nature of the product being handled. For example, the FDA’s Food Safety Modernization Act (FSMA) has placed strict guidelines on how perishable goods must be transported and stored.
Beyond the FDA, major regulatory bodies have regulations governing the transportation of hazardous materials and a general standard on how consumer packaged goods must be transported to protect people and the environment from undue accidents. Failure to comply can lead to problems, such as hefty fines and operational shutdowns.
Here is the thing: Although compliance with established regulations is critical, there are many cases where the companies involved are none the wiser. That is, they may be ignorant of the rules or just don’t understand them. There are also times when these companies or operations just want to ensure everything is as it should be.
Here is why they rely on compliance audits
A big problem doesn’t usually happen without leaving breadcrumbs as it snowballs. That means an underlying problem exists before a bad product is allowed to leave the factory, transported, and then delivered to the consumer’s doorstep. Many times, these problems go unnoticed until they make a huge mess. By then, it is already too late.
So, even when everything seems to be in order during the CPG logistics process, it is essential to leverage compliance auditing to ensure no underlying challenges will make a splash somewhere down the road. Compliance audits help the CPG logistics providers find the issues on time and take the steps that will effectively course-correct the entire process.
Regulations help consumers and businesses. Consider two CPG companies: One is compliant, and the other is not. Only one will continue to face customer backlash, delays, and added fines. That one will also have to bear the brunt of regulatory bottlenecks long after everything is on order.
On the other hand, the complaint company has a seamless experience moving the CPG goods without risk of delays, disruptions, or any financial implications. Companies do not like being the former, so they leverage a compliance auditing team to ensure operations run as they should, leading to more throughput and better overall efficiency.
Imagine spending millions of dollars to get a product to the market. Consider the production costs, shipping costs, and marketing costs. Only to have to recall them? Many businesses do not recover from that. Recalls can be brutal, especially where a company’s financials are concerned. The company would be better off engaging compliance auditors to find and fix the problems before things get out of hand.
Effective compliance audits require thoughtful planning and execution. Scheduling audits regularly ensures that processes are continuously monitored and improved. Resource allocation is key to successful audits; dedicating experienced personnel and appropriate tools can significantly improve the identification of issues.
Reporting should be thorough, providing actionable insights that drive improvements across the company. Moreover, compliance is not a one-time effort — it requires continuous monitoring. Regular reviews, updates to internal policies, and staff training help maintain high standards, enabling companies to adapt quickly to regulatory changes.
It all starts with having the right partner. And that is what we offer you at Zengistics. With us, you can optimize and grow your business logistics efficiently. As a carrier or shipper, we provide end-to-end solutions, including compliance audits. We provide complete transparency throughout your supply chain and connectivity to our established network or partners. You never have to go wrong again with compliance when you partner with Zengistics. Connect with us today.
Operating on the world’s first collaborative logistics platform, Zengistics is a technology company that executes freight.
