Food Logistics serves the entire food supply chain industry with targeted content for manufacturers, retailers, and distributors.
Issue link: https://foodlogistics.epubxp.com/i/467905
www.foodlogistics.com FOOD LOGISTICS • JANUARY/FEBRUARY 2015 35 in the hands of consumers will come back to retailers through their returns flow, different rules may apply depending on the nature of the recall. The normal returns process often won't be adequate. With food, regulatory reporting may require that those returns be accounted for, counted and documented in very specific ways. There are many variables that drive the response and means of conducting the recall. Collaboration is key The three most important factors for recall preparedness are cross-functional advance planning and preparation, having the right expertise and capabilities, and collaboration. Collaboration is key. The kind of rapid-cycle coordination necessary for effective recall response will demand solid collaboration of planning across departments, vendors, retailers and potentially other trading partners, depend- ing on the nature and scope of the recall. The key in planning is having an appropriate strategy built to complement your company's prod- uct portfolio, and ensuring that the plan is tested. At the end of the day, the recall strategy has to be something people can execute. They have to understand the strategy and process, have the resources and capabilities to execute it, and they have to know how to execute it efficiently and effectively. Testing those elements through a mock recall is the only way to verify your orga- nization's preparedness. Recalls are extremely complex, high risk and fast moving. You're better off planning ahead and enacting a proven plan than you are trying to simultaneously build and execute a strategy. Consider that you may have to divert resources from everyday business processes to address a recall. Therefore it's important to see recall plan- ning as a component of your company's other business continuity plans. A recall is a potential business disruption that warrants minimizing potential cost impacts and revenue implications. For example, no one doubts that removing product from shelves is a business disruption. But, if you plan ahead, you can identify ways to have replacement product back on shelves as quickly as possible to minimize lack of availability. That goes a long way toward more effectively minimizing the negative impact on revenue and can be an impor- tant element in managing consumer confi- dence in your brand. Collaboration among the many stake- holders is essential to success. But you won't pull it off just by having a strategy on paper. You can only be sure by testing the process. Inmar almost always recommends staging a mock recall. It's really the only way to know your strategy is good and your people are capable of executing according to plan. It's often the only viable way to identify issues, see threats to success and plan contingencies. Don't mock the mock recall Mock recalls force you to evaluate your resources, possible regulatory contingencies, capabilities to meet them and your ability to do it all with minimal impact to customers, trading partners and your bottom line. A good mock recall has to be more than just a traceability exercise and checking to make sure you have the resources in place in case you need them. You won't know how well those resources fit the bill until you test them, see how they per- form and adjust to accommodate the insufficien- cies you will undoubtedly uncover. Having faith in your quality controls is one thing, but being pre- pared is another thing entirely. There's an old sailors' proverb that serves as a good reminder to be pragmatic about such things: Pray toward heaven, but row toward shore. Feel free to download Inmar's Top 10 Recall Best Practices. ◆ Steve Dollase is the president at Inmar Supply Chain Network. http://bit.ly/1C0RIKy Inmar's Top 10 Recall Best Practices There is NO registration fee for manufacturers and retailers. For more information and to register to attend, visit: www.inmar.com/forum Join us for the 2015 Inmar Analytics Forum where we'll explore how to apply analytics to drive business growth and to truly understand, and better serve, the customer. Ofering more than 50 informational sessions in the areas of supply chain, promotion and healthcare, the Forum features and outstanding group of presenters including: WINSTON-SALEM, NORTH CAROLINA • April 7 - 9, 2015 Speakers from: • PepsiCo • Target • Dollar General • L'Oreal • Giant Eagle • General Mills Session topics include: • Recalls • Regulatory • Supply chain collaboration • Industry trends and benchmarking • Reverse logistics DAVID PLOUFFE • Senior Vice President for Policy and Strategy, Uber • Senior Advisor to President Barack Obama (2011 - 2013) • Campaign Manager, 2008 Obama for President • New York Times Best-Selling Author PRESENTATION: "Big Data: Knowing Instead of Guessing"