Will 2023 be a year of widespread product recalls? Unfortunately, the percentage of product recalls are extremely unpredictable. There are hundreds, if not thousands, of consumer products recalled each year.
Luckily, Sage released an article which provides various supply chain tips for dealing with a product recall (if one were to happen). We provided 5 of these tips for you below:
- Stay on top of changing regulations – Product safety compliance is complex and constantly modifying regulations. Having a central regulatory repository (part of a modern ERP system) helps with compliance of existing regulations and implementation of new ones. It provides a core outline of reference.
- Maintain a robust and up-to-date supply chain – If a product were to be identified as defective, the extent of contamination needs to be determined ASAP. asking these questions may help:
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- Which product batches were faulty?
- What raw materials were involved?
- Which other batches shared the same raw material, or passed through the same production facilities?
- Is this problem new, or has it been happening for some time?
Having the correct data readily available helps answer these questions to quickly identify and address the problem while providing market reassurance and alleviating recall cost.
For access to real-time data, businesses must invest in a single-centralized solution to track data from the supply chain, through productions, and all the way to customers. Regulators will expect businesses to connect ingredients and customers through complex, multi-production processes. The result of not having these processes in place can be a massive recall that could bankrupt a company.
- Be transparent with all aspects of business – With the accessibility and convenience of today’s internet, consumers can access reports of product issues as soon as they’re readily available. A badly handled product recall can damage the reputation of any business—sometimes irreparably—so control the narrative. The safest and best strategy is to communicate with authenticity.
It is here where having strong visibility of supply chain is crucial. It allows businesses to be authentic about the potential extent of problems and quickly pinpoint the cause, essential to protecting ones’ reputation.
- Reduce the risk of product recalls – While it’s nearly impossible to eliminate the chance of a product recall, prevention is always better than treatment. Here’s how you can reduce your risk of product recalls:
- Undertake mock product recalls
- Streamline and thin product lines and packing options.
- Hold on to samples from product batches to quickly test for defects.
- Reduce batch quantities to make it easier to isolate faulty products.
- Maintain strong communication with everyone in your supply chain.
- Continually analyze and improve supply chain processes to minimize risk.
- Monitor customer feedback, including social media, to identify defects immediately.
- Maintain a dedicated crisis management team.
- Prepare an emergency-readiness plan – Time is of the essence when dealing with a crisis (especially during a food & beverage crisis). An effective emergency-readiness plan may include some or all of the following:
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- Determine the severity of risks.
- Identify the extent of contamination and isolate the affected areas.
- Notify distributors and retailers ASAP.
- Put tried-and-tested product recall procedures into action.
- Report the product issue to the relevant authority.
- Publish transparent information on the recall to customers.
Your Next Steps
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