In the first article of this series “Food ERP: 3 Product Recall Planning Best Practices: Part I,” we discussed how a product recall effects your business in the short-term and the long-term consequences for your company you’re your brand. If you are in the food and beverage business, it is best to anticipate that a product recall might happen to you. Smart businesses plan for a product recall and are prepared for it to occur. In today’s post we’ll cover how you can survive and thrive in the event of a product recall. Here are several points your business should consider about product recalls and what you can learn from not having a product recall.
When considering a product recall and how it can affect your business over the both the short- and long-term, one of the most important ways to protect yourself is through proper preparation & planning. Having a properly designed plan on how your team will react to a product recall will save you time & money. Preparation and planning will also give your team confidence when it comes time to act. It’s critical to map out what needs to be done and which team members are responsible ahead of time to avoid duplication and key tasks being missed. This is similar to a disaster recovery plan that many businesses have learned they must have in the event of an IT disaster or natural disaster such as the example of businesses struck by hurricane Sandy.
Today’s responses need to be quick, accurate and reproducible. Implementing a strong ERP & CRM solution will help you navigate a recall quickly, engage with your customers immediately, and save time and money. In addition, consider adding a Recall Management Module that connects with your ERP to streamline the process and RFID technology to easily track and identify affected inventory and shipments.
Practice makes perfect!
Having a good plan and proper technology in place makes for a great playbook on how to survive a product recall. However, a great plan that has never been practiced can be a disaster. The best teams do mock play, so on game day everyone knows what to do and how to do it. Likewise, your company should run mock product recalls to allow your team to:
No company wants to go through a product recall, but when it does happen be prepared with:
Having all three in place will allow you to quickly identify the situation, respond, and move forward. So, you are focused on what’s next and not doing damage control. And that is a product recall made easy! What changes need to occur to make sure your brand is built to last? We hope this series was helpful to show you how a product recall can go well, each and every time, by building a plan and following it to come out stronger in the future.
If you have questions about how an improved Food ERP system can help you avoid and manage the event of a product recall, our industry experts are available to help. Please feel free to contact the NexTec Group at 206-505-7980, by EMAIL or visit our website at www.nextecgroup.com. We would be happy to discuss all your options in more detail. At NexTec Group, we’ve been implementing ERP solutions and supporting businesses for more than 20 years. Our clients are primarily SMBs (small-to-midsized businesses) in industries such as food ERP, food & beverage, manufacturing (process manufacturing), distribution, pharmaceuticals, chemical, energy (oil and gas), and related industries.
Another version of this blog was posted on NexTec's Blog on February 27. 2015: Product Recall Gone Well - Part II by Colin Hanes