A storm of product recalls hit hard towards the end of 2014 and into 2015. The news has poured down in the headlines…
- Over 320,000 lbs. of Meat, Including Chorizo, Recalled
- Cumin Products Nationwide Recall for Undeclared Allergens
- FDA, CDC Expand Listeria Warning to All Prepackaged Caramel Apples
- Keurig Recalls 7.2 million Coffee Machines That Can Burn Users
- Auto Industry Galvanized After Record Recall Year
- Recall Woes Follow GM into New Year
What is a product recall?
A recall is an act of officially summoning someone or something back to its place of origin. A product recall is defined as a request to return, exchange, or replace a product. Product recalls usually occur because during the manufacturing process. A faulty component of the product has gone unnoticed, or perhaps the risky nature of the product was only realized once a consumer reported a bad experience. This type of situation has obvious negative consequences for business: customer dissatisfaction, potential legal issues, decreasing sales, and of course, the loss of the cash assets tied up in now obsolete stock that cannot be sold for a return. This can mean the business is left with an excess of inventory that is no longer sellable, leading to decreasing profitability.
About Important Things
Product recalls are an ongoing issue for businesses big and small. Just take a look at all recently posted recalls being announced each week on the websites of: U.S. Food and Drug Administration (FDA), United States Department of Agriculture (USDA), Consumer Product Safety Commission (CPSC), and National Highway Traffic Safety Administration (NHTSA).
The truth of the matter is recalls are a fact of business life. Companies of every size should be prepared to effectively remove all affected products from the supply chain and tame the storm that recalls unleash.
How inventory management software can help you manage a product recall?
An efficient inventory management software solution is a critical component to aid in the recall process. Product recalls are commonplace and are to be expected in many mass-inventory industries such as in the automotive, pharmaceutical, and food industries, etc. The risks and consequences involved in navigating the recall process can be unnerving. A product safety issue usually triggers a recall, so there are significant financial, legal, and reputation risks involved. The cost of a complex product recall process can easily reach the tens of millions of dollars. Prompt and informed action is needed if a company is to mitigate the risks and weather the storm. Consumers are concerned that companies that do not initiate timely product recalls are more interested in profit than safety. Inventory management software is a must-have to ensure timely action.
1) Get ahead of the issue
Because the risks are high, expectations are also high at the start of a product recall. Companies are expected to almost instantly understand which products are affected, what risks consumers face, and the actions to be taken. Even coming close to meeting these expectations is not possible without immediate access to inventory information.
A comprehensive inventory management system will allow you to immediately identify which products are affected. A user can view a report that, for example, filters inventory based on expiry dates. Multiple pieces of data can be used to define the scope of the problem and identify which products need to be recalled. This could include production dates, batch numbers or any other identifying detail. Storing all of this information in a database for ready recall enables quick action to be taken. In contrast, looking through multiple sources of information, including spreadsheets and manually generated paperwork could cost your business and expose more of your customers to harm.
2) Respond more decisively
Having a fit-for-purpose inventory system means being able to both scopes a product recall quickly and have the capability to carry that recall out. Notifying downstream stakeholders is a crucial early step once the decision has been made to recall. Some systems may integrate down the supply chain, enabling upstream suppliers to send alerts right down to the point of sale. In any case, your inventory management software should help you quickly generate sales reports, which enable you to contact every immediate purchaser of your products (and to liaise with them to continue notification down the supply chain). Without a centralized database organizing inventory, the recall process would take much longer to gain traction.
3) Reduce the product recall impact and get back to business as usual
Amongst all of the stress and risks of a product recall, a key priority should be to keep sight of everyday business and minimize disruption. As the recall begins in earnest, there will likely be mountains of stock and paperwork to process – all of the difficulty of a stock count with almost none of the proper preparation. Having proper processing tools, including intuitive software and tools like barcode scanners and RFID tagging, can ease the burden on your staff and systems.
4) Prevent product safety issues
Inventory management software can often prevent product recalls from occurring. In the case of products with expiry dates, it is essential to prevent those products from leaving their retailer. An inventory database can record expiry dates, alerting manufacturers and retailers to spoilage issues.
Suggested article: What is inventory management and why is it important?
Triumph over the product recall storm
Recalls can be a catastrophe, but companies can triumph over the storm by having the right tools in place before disaster strikes i.e. the right inventory management software solution.
Elmasys Inventory Management System
Elmasys inventory management system has integrated a recall system that is the ultimate choice for your business. It has many advantages, such as Elmasys Inventory Management Software holds a wealth of information, including details about a business’ products all from one screen. This one screen also includes a history of the inventory to know all production and distribution details. Plus, advanced product traceability enables companies to know the lot numbers and/or serial numbers of every recalled product, including lots for ingredients. All this information can be compiled into a detailed and well-formatted report along with product source, expiration date, and other pertinent information to comply with regulatory requirements.
You can sign up for a free trial of ElmaSys Inventory right now to see if it’s the right inventory management software for you.
To find out if ElmaSys is a good fit for your business, click here for a demo.
