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Are You Ready For a Recall ?

Are You Ready For a Recall ?. Denise Webster Director, Trading Law & Technical Fresh & Easy Neighborhood Market. Product Recalls on the Rise?. Complexity of supply chain Increase testing Better reporting Visibility Awareness Economics. Your Brand & Bottom line.

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Are You Ready For a Recall ?

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  1. Are You Ready For a Recall ? Denise Webster Director, Trading Law & Technical Fresh & Easy Neighborhood Market

  2. Product Recalls on the Rise? • Complexity of supply chain • Increase testing • Better reporting • Visibility • Awareness • Economics

  3. Your Brand & Bottom line Cantaloupe Jensen Farms 2011 Deadliest foodborne illness outbreak in over 25years Listeria contamination resulted in over 30 deaths and hundreds of illnesses. Dollar volume of sales drops by 55.7% within four wks Sunland 2012 42 people infected with Salmonella in 20 states 240 products recalled First company to have registration suspended Facility & industry still trying to recover

  4. Impact of FSMA • Mandatory Recall Authority • Suspension of Registration • Administrative Detention • Expansion of Records Access • Reportable Food Registry • Mandatory Recall Fees • Preventative Controls • Produce Safety

  5. What’s the true cost of a recall? • Destruction Costs (internal, DC, retail) • Recall Communication (PR, Customer Service) • Transportation and Warehousing • Additional Staffing/Consulting Cost • Inspection and Testing • Replacement Product • Refunds to Customers • Business Interruption • Rehabilitation Expense

  6. Traceability • Identification codes (best before, lot code) • GS1/ iCix/HarvestMark • Depth a recall goes into the supply chain • Depth the government may require a recall • Minimize exposure • Quick response • Recognition

  7. Recall Insurance • How much does a recall cost companies? • General product liability insurance enough? • Strict liability implications • Premium vs. Deductible • Standard vs. Optional coverage • Likelihood of having an ‘Insured event’ • Recoverable event or Catastrophic?

  8. Can you ‘prevent’ recalls? pre·vent • To keep from happening • To keep (someone) from doing something • To anticipate or counter in advance • To come before; precede American Heritage Dictionary

  9. Retails - ‘Counter in Advance’ • Supplier Assurance/Requirement Programs • Combined 3rd party and own audit programs • Risk-based decision making • Integrated database systems • Engagement • Training

  10. Are you Ready? • Crisis manual with recall protocols, templates, press release and contact list • Point person for the business and regulatory agencies • Verified and validated processes • Effectiveness checks • Mock recalls • Customer Service FAQ’s

  11. Transforming the Media • How will you be remembered? • How would you turn negative media around?

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