How collaborative recall plans safeguard every step of the supply chain

Inaccuracies, time delays, unclear instructions and confusion often happen as information gets passed across supply chains from manufacturer to distributor to retailer — and often gets convoluted.

Since there’s no consistent data set, communication template or management tool used, every company has created its own way of doing recalls.

As a result, no one is on the same page and it shows.

Preparing collaboratively. Food businesses must create and practice recall plans with their trading partners, setting clear expectations about what information is needed, how it will be communicated, what tools will be used and what actions are expected. Conduct collaborative mock recall simulations to ensure the plan works as stated. Debrief after practice to identify successes and gaps. Adjust, as needed, to close gaps. The premise of the Recall Ready Community initiative is standard process + standard data + collective practice = supply chain readiness.

Ensuring all supply chain partners are well-prepared. Since recalls can be infrequent for manufacturers, they may be unprepared to properly manage a recall situation. Mock recall simulations that include trading partners turn an infrequent operation into a normal business process with efficiency and effectiveness. If manufacturers provide inaccurate or incomplete information, aren’t quick to communicate and don’t enable their customers to act, it creates challenges down the supply chain. All trading partners must prepare and practice together to avoid these issues.

Developing and utilizing proper systems. Create shared systems for quick data gathering and decision-making, as well as to track shipments across the supply chain. Use integrated tech tools to maintain accurate, real-time records of product movements and storage locations. During a stressful, demanding recall is not the time to create a new system or to try and figure this out.

Defining roles clearly. Every partner plays a critical role during a recall. The question, “What does each stakeholder need to know in order to act quickly and effectively?” has a different answer depending on their role. For instance, distributors often have the hardest job during a recall because they must receive information from their supplier, act on it with the product they have and pass the information onto customers they sold to. They must also manage the logistics of products in transport, plus issuing and receiving credit. 

Understanding logistics. Each partner must be prepared to confidently manage the logistics under their purview. Retailers often bear the brunt of recalls because they manage the most volume. Large grocery chains have tens of thousands of suppliers and hundreds of recalls each year. Their biggest challenges are getting accurate information from the recalling supplier, managing consumer notification, and handling reverse logistics to remove products from their shelves and back rooms to prevent selling recalled products.

Communicating effectively. Work collaboratively with trading partners to promptly notify regulatory bodies and the entire supply chain about the recall. Convey what happened, how it happened and what happens next.

Conducting reverse logistics. Rely on integrated tech tools to pinpoint where contaminated products are located, coordinating with trading partners for efficient product retrieval or disposal. Ensure proper handling and disposal of recalled products and provide clear instructions to key stakeholders, including retailers and consumers, about handling recalled products.

Considering lessons learned. After a recall, whether a practice simulation or an actual event, review all processes and determine any gaps and areas that could be improved. Implement corrective actions and update procedures accordingly.