Food ERP: Product Recall Planning Best Practices: Part II

Food ERP:  How to Manage the Best Case Scenario

In the first article of this series, “Food ERP: 3 Product Recall Planning Best Practices: Part I,” we discussed how a product recall affects your business in the short-term and the long-term consequences for your company and your brand. If you are in the food and beverage industry, it is best to anticipate that a product recall may occur. Smart businesses plan for a product recall and are prepared for it to occur. In today’s post, we’ll cover how you can survive and thrive in the event of a product recall. Here are several points your business should consider about product recalls and what you can learn from not having a product recall.

2 P’s in product recall

When considering a product recall and its potential impact on your business, both in the short and long term, one of the most important ways to protect yourself is through proper preparation & planning. Having a properly designed plan on how your team will react to a product recall will save you time & money. Preparation and planning will also give your team confidence when it comes time to act. It’s critical to map out what needs to be done and assign responsibilities to the relevant team members ahead of time to avoid duplication and ensure key tasks are not missed. This is similar to a disaster recovery plan that many businesses have learned they must have in the event of an IT disaster or natural disaster, such as the example of businesses struck by Hurricane Sandy.

Food ERP and CRM Systems: Technology to the Rescue

Today’s responses need to be quick, accurate and reproducible. Implementing a strong ERP & CRM solution will help you navigate a recall quickly, engage with your customers immediately, and save time and money. Additionally, consider incorporating a Recall Management Module that integrates with your ERP to streamline the process, as well as utilizing RFID technology to easily track and identify affected inventory and shipments.

A strong Food ERP & Recall Management solution will help you to:

• Identify the products and quantities affected
• See where they were shipped
• Produce a list of remaining affected stock
• Get supplier details for affected products
• Flag affected stock as ‘Do Not Use’
• Print/email required consumer notification letters
• Create call lists in CRM to aid customer service

Practice makes perfect!

Having a good plan and proper technology in place creates a great playbook for surviving a product recall. However, a great plan that has never been practiced can be a disaster. The best teams do mock play, so on game day everyone knows what to do and how to do it. Likewise, your company should run mock product recalls to allow your team to:

• Learn and practice the process
• Gain insight on gaps in your current procedures
• Collect feedback from your front-line employees
• Build confidence in your organization to handle a recall quickly & efficiently
• Continually evolve your processes

Product recall made easy

No company wants to go through a product recall, but when it does happen, be prepared with:

• A rock-solid recall plan in place
• A good ERP/CRM system with recall management to allow you to execute quickly
• A team that’s practiced and confident in the procedures

Having all three in place will allow you to identify the situation, respond, and move forward quickly. So, you are focused on what’s next and not doing damage control.  And that is a product recall made easy! What changes need to occur to make sure your brand is built to last?  We hope this series helped show you how a product recall can go well, every time, by building a plan and following it to emerge stronger in the future.

If you have questions about how an improved Food ERP system can help you avoid and manage the event of a product recall, our industry experts are available to help. Please feel free to contact the NexTec Group at 206-505-7980, by EMAIL or visit our website at www.nextecgroup.com. We would be happy to discuss all your options in more detail. At NexTec Group, we’ve been implementing ERP solutions and supporting businesses for more than 20 years.  Our clients are primarily small to mid-sized businesses (SMBs) in industries such as food and beverage, manufacturing (process manufacturing), distribution, pharmaceuticals, chemicals, energy (oil and gas), and related industries.  

Another version of this blog was posted on NexTec's Blog on February 27. 2015:  Product Recall Gone Well - Part II by Colin Hanes