Standardising Product Recall


 

 

SAFEnet, a CGCSA initiative, is looking to establish a standardised process for product recall in South Africa that offers major benefits for the local market.

 

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On the back of health scares such as the worldwide recall of a baby formula suspected of contamination, the Consumer Goods Council of South Africa (CGCSA) compiled a document entitled Food Safety Initiative: Food Industry Recall Guideline. The document acknowledges that a number of organisations have processes to recall products, but the approaches are inconsistent and it may be beneficial to establish a standardised electronic process.

 

Risk factors

 

There are several situations that may indicate potential or actual risk in a food product and thus trigger a recall decision, but the most common are foreign matter found in foodstuff and contamination in chemical, microbiological and allergen forms. Reports of illness, injury and adverse reaction are also key recall triggers – the severity of the potential threat and the probability of occurrence inform the recall decision.

 

In terms of traceability, Fiona van der Linde, GS1 Manager: Global Data Synchronisation, Traceability & Product Recall at CGCSA, says it is vital that when an organisation identifies a risk it can trace the threat back to source in order to swiftly isolate the suspect product and prevent it from reaching more consumers. Rather than an individual assigned to managing a recall process, the council recommends that a team be appointed to oversee consumer safety recall to ensure all aspects are appropriately addressed.

 

Once a consumer safety issue has been identified, the responsibility to resolve it lies with the individual company in consultation with relevant authorities (where necessary). The CGCSA supports a risk-based approach and recommends the risk be assessed by qualified individuals, explains van der Linde.

 

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Effective Recall Guidelines

 

In terms of the physical retrieval of a product, there are a few issues to be considered, primarily whether the company wants the consumer to dispose of the suspect product or whether they wish to retrieve the suspect product to ensure it is removed from the marketplace. The biggest challenge may be to successfully collect the product from all customers, including informal traders such as spazas and hawkers.

 

Clear, timely and accurate communication is key for an effective recall programme. This was illustrated recently with a number of recalls: UK foodstuffs containing Sudan Red, an industrial dye found to be a potential carcinogen; a large quantity of frozen tuna used in sushi after it was linked to a salmonella outbreak in the US; and, locally, GlaxoSmithKline recalled batches of Grand-Pa headache powder after some were found to be counterfeit. This last case made it clear that local consumers are not used to food product recalls. Affected companies will do well to anticipate extremely high volumes of queries and be willing to clear up all confusion that may result.

 

The use of internal and public media is crucial in this regard, cautions the CGCSA, as attempting to conceal information may only serve to worsen the situation.

 

In its product recall guidelines, CGCSA recommends that individuals dealing with media rather respond with “I don’t know right now” than an uninformed reply. It’s also suggested that all queries from the media be requested in written form to prevent any misunderstandings.

 

CGCSA’s Food Safety Initiative identifies two problem areas to address in the Product Recall Guideline:

• South Africa does not have a standardised effective electronic tool across the food industry to enable quick product recalls and effective communication.

• South Africa does not have a system to identify small to medium enterprises and their locations to enable an improved success rate during product recalls.

 

The organisation therefore endorses the Project SAFEnet Product Recall System to ensure South Africa’s food chain is one of the safest and most agile on the continent. This is an initiative of the global not-for-profit organisation GS1 South Africa, whose North American Member Organisation manages the recall programme for global fast-moving consumer goods giants Procter & Gamble and Unilever.

 

In a GS1 case study on the subject, Daniel Triot, market logistics leader, North America Market Strategy & Scale at Proctor & Gamble, remarks, “Doing the right thing is one of P&G’s core values. While product recalls are something we strive to avoid and take very seriously, in the unlikely event they do happen, we are ready.”

 

Communication is Key

 

Managing recall communication for the vast network of P&G retailers and wholesalers could be challenging, but with GS1’s Rapid Recall Exchange service Triot says his duties have been simplified. "We’re excited about the Rapid Recall Exchange service since it gives us a tool for communicating a single version of the truth,” he explains.

 

“It allows us to deliver one consistent message to all retailers, regardless of the product category or marketplace they play in.”

 

A similar GS1 case study quotes Pasupuleti Krishnayya, coordinator of US recalls at Unilever, as saying the company’s product recall process starts with fact-based and timely communications. “We take great care to prepare what is communicated and how.”

 

“We choreograph the sequence of communications to make sure the right people in our customers’ organisations receive comprehensive recall instructions. At the same time, we keep others in the industry informed as well,” adds Krishnayya.

 

The GS1 Product Recall Framework is an online service that allows manufacturers to send e-mail messages to retailers 24/7, alerting them about a product recall or withdrawal. Over and above other forms of communications such as news releases, customer letters and direct contact, global companies have incorporated the GS1 Recall service to complement their product recall steps and P&G’s Triot highly recommends it for other organisations too.

 

“The sooner additional retail partners and manufacturers join the SAFEnet Product Recall system, the sooner it will build critical mass and keep improving the value of the tool. This will significantly contribute to streamlining the recall notification process for us and retail partners,” adds van der Linde.

 

The case study also quotes Laura Trappe, manager of Unsaleables and Liquidations and a vital member of the Unilever product recall team. She says that she briefs sales directors prior to a product recall via a conference call. “We let them know a recall is pending; in this way, they can reach out to the customers impacted even before an electronic letter goes out.”

 

The More the Merrier

 

While there are common factors, Unilever acknowledges that no two recall processes are the same. “I believe our success comes with the recognition and associated planning for each recall’s differences,” adds Krishnayya. The importance of sending out accurate and consistent information the first time around cannot be underestimated. Trappe also confirms that Unilever has learned that “the recall notification must be clear and include all details. Going back to the sales force and customers with updates will cause confusion.”

 

P&G’s Triot is of the same mind as Trappe, saying, “It is a one-stop source of data that definitely reduces the need for numerous follow-up e-mails or phone calls to clarify the information provided by the manufacturers.”

 

Retailers and suppliers keep their respective contact information up-to-date and in one place for quick two-way communication. Ray Bruen, director of Safety, Health, Environment & Quality at Unilever, is also quoted in the GS1 case study: “With a single key stroke we can consistently convey recall information to many. There are no interpretation challenges along the way.”

 

As a parting shot, Triot says he strongly encourages everyone thinking about subscribing to a product recall system to sign up and do so right away. “Help make this tool a valuable asset for us all,” he encourages.

 

What is clear from the above is that the wider the membership of a network such as SAFEnet, the more effective it will be as a mechanism for managing product recalls. “The hope is that many more companies will join, especially some of the mid-sized and smaller retailers,” concludes van der Linde.

 

Written by Nyakallo Lephoto and first published in Synergy, the CGCSA membership magazine

 

Visit www.cgcsa.co.za

 

 

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