Skip to main content

Effective product recalls: Things you need to know

Back in May 2015, Indian food safety authorities outlawed the production and sale of an instant noodle product, manufactured by a leading global brand, for high level of MSG.

As the ban surfaced, the company struggled to recall affected instant noodle packs from its supply chain spread across the country. The company was unable to access as much as 35–40% of the total stock as thousands of outlets selling the product are outside the company’s direct reach or network. Recalling a faulty product proved difficult, especially from the rural areas.

As a result, the only retort available to the company was to destroy the whole stock, wherever found in the supply chain. Trucks of material were destroyed, leading to huge losses in cost and reputation.

Brand owners need to be always prepared for the uncalled situations like the above. The sheer preparedness will not only save huge costs by exactly targeting the stock that needs to be recalled but also save the brand image, portraying it as responsible organisation working towards consumer safety.

The preparedness in this case is an effective recall mechanism with proper guidelines and strategies. Let’s understand what it entails.

Either mandated by the Regulator or voluntarily initiated by the brand owner, product recall is a process of recovering products/consignments batch-wise from your supply chains, spanning the whole market. An effective recall system is based on visibility to the whole of the supply chain and needs seamless data flow among supply chain partners with unambiguous and unique identification of products, consignments, locations, parties, and documents.

Standards-based solution to recalls

The objective of a product recall system is to encourage speedy, transparent, localized product withdrawals from the whole of supply chain whenever required. This requires implementation of global supply chain standards — GTS (Global Traceability Standard).

The Global Traceability Standard functions as a blueprint for all supply chain partners that enables them to share product/consignment information at each checkpoint in a manner that enables complete supply chain visibility.

The GS1 GTS is intended for use across end-to-end supply chains and is relevant to all events that span the lifecycle of a traceable object, including:

  • The transformation and processing of raw materials, ingredients, intermediate products, components and components into the product.
  • Aggregation and disaggregation of products and linkage to assets (e.g., returnable assets).
  • Transport and distribution, including cross-border trade.
  • The maintenance, repair and overhaul operations across multiple cycles of usage or service of the product.
  • Consumption of products, including dispensing and administering.
  • The disposal and destruction of the product and the recycling of materials.

It also provides a foundation to enable data sharing across more complex supply chains, where parties need to find and retrieve information from companies that are not their direct trading partners and where trust may need to be established before data can be shared.

The need for unique identification

At the heart of a traceability system is the identification of traceable objects, which is encoded in the form of barcodes. A traceable object is a physical or digital object for which there is a need to retrieve information about its history, application, or location. Examples of traceable objects include products (e.g., consumer goods, medicines, electronic devices), logistic units (e.g., palletised goods, parcels) and assets (e.g., trucks, vessels, trains, forklifts).

For the physical identification of traceable objects, generally three main levels of identification can be distinguished:

  • Class-level identification, where the object is identifiable by its product / part ID, enabling it to be distinguished from different kinds of products or parts.
  • Batch/lot-level identification, where the product / part ID is extended with a batch/lot number, limiting the number of traceable objects with the same ID to a smaller group of instances (for example, items produced at the same time).
  • Instance-level identification, where the traceable object is identified with a serialised ID, limiting the number of traceable objects with the same ID to one individual instance.


The objectives of the traceability system and the supply chain itself are key criteria to determine the right level of identification. Companies will often apply a combination of identification levels.

Once, this unique identification system is in place, along with the digital infrastructure required by GTS, using which each supply chain stakeholder has transparency, recalls becomes efficient and effective.


Comments

Popular posts from this blog

DataKart: National Repository of Information on Indian Retailed Products

 Reaching out to customers with accurate product information has never been more competitive and difficult for retailers than today. This is majorly because of the ever increasing complexity of business processes with ever increasing consumer demands of more and more product information. As we move from single-channel retailing to multi-channel retailing, the need for better and efficient product data management has become critical. Listing new products as soon they are launched in the market is critical to ensure that they consumers don’t go back without making sales. This is directly proportional to a retailers/e-tailers’ ability to quickly receive and update information on new products from several suppliers and present it to retail shoppers as per the requirement of the retailing channel, ensuring seamless shopping experience.  However, in the real world scenario, most of this product information is compromised (and lost to some extent) in the process of receiving the sam...

Learn About the Benefits of Having GS1 Barcode Numbers On Your Product

 Having spent a lot of years visiting retail stores and outlets, we all must have witnessed a barcode on the packaging of the product that displays a specific pattern of stripes. What we also do notice is that these lines are composed of some numbers or codes which are framed to be scanned by optical readers. Since the lines correspond to a list of numbers, it gets easy to look up any product with a barcode simply by matching those numbers to an entry which is made in a database at the check-out of a retail store. It is interesting to note here that barcodes also play a key role in supply chains, enabling parties like retailers, manufacturers, transport providers, etc., to automatically identify and track products as they move from manufacturing units to the consumer, and hence enable product recalls, detect counterfeits, etc.. What is a genuine barcode number? As we understand the many benefits of barcode numbers, it is important to know that not all barcode numbers can provide th...

GS1 Traceability Service Enables Complete Track and trace of Their Products Across the Supply Chain

In today’s consumerist economy, the sale of a good or service is not merely a transaction – it is a brand promise that what is being sold to a consumer is genuine. The idea that a product isn’t what it's seller claims it to be is highly detrimental to consumer perception. The trust that is built gradually over time depletes instantly and damages the brand, delivering a possibly fatal blow to future sales. Long term sales, an important parameter of overall business success, is compromised when a consumer is given a product that is inauthentic, inferior, or unsafe. A brand’s social dimension, defined by the information shared by consumers online and through word-of-mouth, also takes a hit. With their aggressive focus on product data quality , today’s consumers are also acting as activists, taking action against brands that do not deliver on what they promise. Counterfeit products like medicines, faulty medical devices, contaminated foods and unreliable sourcing practices threate...