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frozen toaster waffles, smoked salmon, green onions and Growing concerns about listeria outbreak These are just some of the recalls and market withdrawals the FDA has announced in recent weeks.
According to Roger Hancock, this is a wake-up call for food companies to ensure they have appropriate plans in place when potential health issues and resulting recalls impact their supply chains. CEO of Recall InfoLink The company is recalling its management software.
According to Hancock, the origins of a recall can vary greatly.
“Some may originate from consumer complaints, some may originate from regulatory testing. Some may start with a review of data within the product line,” he said.
Prioritizing a proactive attitude
According to Hancock, businesses facing a recall should already have a step-by-step game plan in place, including who to contact first. The best way to prepare for this is to act as both companies, Hancock said. and supply chain.
But that’s only half the battle, Hancock said. “Once you understand where your product comes from, you need to be able to effectively communicate your sales flow.” Trying to minimize recalls will only worsen your brand reputation.
According to Hancock, effective communication and preparation require three things:
- Ensure all parties understand the urgency
- Removing recalled products from the supply chain
- Report incidents clearly to consumers to maintain your brand reputation.
Recalls are typically reactive, so companies must first gather as much information as possible about the situation and then share that information according to specific policies.
“As a supplier, you want to have information about production runs, cleaning cycles, documented packaging, complaints received, and then share that with crisis situations or management to evaluate that information,” Hancock said.
When considering a problem as a supplier, it is important to ask questions including “Is this a health risk?” or “Does this have anything to do with product quality?” According to Hancock, the answers to these questions will help you decide who to talk to first.
Sometimes the first line of communication a company must take is with the media, customers, research institutes or regulators.
Food executives should also always think about how they will handle recalls with their trading partners to ensure they have an existing plan in place, he said.
“By far the biggest gap slowing down recall is knowing how to identify who, on average, you need to contact,” Hancock said.
The principles require companies to:
- Gather information quickly to make thoughtful, timely decisions.
- Make decisions in a process, not in a vacuum.
- Communicate appropriately to encourage necessary action.
- Take action
How to mitigate costs
Recalls have several direct costs that companies can easily estimate, including compensation for unsold products, product disposal, and communicating with people about the recall.
“Indirect costs are mixed into the recall recovery phase,” Hancock said. “Marketing efforts, communicating with consumers and building trust — the better we do on the recall front, the lower our overhead costs will be.”
He said common characteristics of companies that handle recalls well are consistency and good communication. “Confusion is the enemy of a well-handled recall,” he said.
