Sounding the Alarm on Product Recall Preparedness
03-23-2010
By Howard Aughinbaugh
I recently attended the National Association of Chain Drug Stores 2010 Supply Chain and Logistics Conference where the discussion included a number of supply chain management issues, including the impact of product safety recalls. One topic we discussed was the challenge of removing and returning affected product from the supply chain while, at the same time, quickly delivering replacement product to the shelves. This can be a nightmare to navigate, especially if you don’t have a recall plan in place that outlines, among other things, recall logistics.
On my return flight I was reflecting on the meeting when I noticed an abandoned aircraft out on the fringes of the airport. It appeared the plane was used by the Airport Fire Department to practice the airport’s crash response plan. As our plane left the ground, I found myself focusing on the importance of disaster planning and how a well drilled and carefully practiced plan can help ensure the best possible outcome in the face of even the most challenging and unfortunate circumstances.
I kept thinking about the brave firefighters who practice the moves they would have to make in the event of a fire in order to save lives. I believe many of the same practices used by public safety professionals can be applied by business professionals in order to protect their businesses and key stakeholders in the event of a product safety recall. Among the critical practices that help ensure an effective recall are the following:
- Recall Plan – Firefighters plan and practice! A positive outcome to any unexpected event will be greatly influenced by having a well-designed crisis plan and recall management system in place. The plan and system should be frequently practiced by all parties involved. The plan should take into consideration as many contingencies as possible, while acknowledging that no two recalls are ever exactly the same.
- Rapid Response – In the event of a fire, immediate fire suppression activities are critical to minimizing property damage and protecting public safety. In the event of a recall, immediate action is necessary to make sure the scope and depth of the recall are rapidly determined and the recall design is commensurate with the product safety issues at hand.
- Planning and Practice – Familiarization with the disaster plan is obviously important for firefighters before they are faced with a real-life situation. Even school children practice an exit strategy through fire drills to ensure they know how to get to safety if there is ever a fire. Familiarization with the recall plan among all affected stakeholders is likewise an essential part of recall effectiveness. Key participants must know in advance what they might expect during the recall and what they are expected to do. This function, to be most effective, must be an on-going program with continuous updating. Rookies should always be paired with an experienced partner.
- Effective Leadership – Successful emergency fire operations depend upon the competence of the commanders in charge at the scene. Recalls require that the same strong, aggressive, and competent senior leadership be involved. The recall management role should not be delegated to lower levels of the organization. Continuing inter-departmental education for both employees and management is crucial.
- Operational Cooperation – Fire departments employ a practice called mutual aid. If a situation intensifies and grows beyond the capabilities of a single organization, the immediate response by mutual aid departments without hesitation or confusion is critical to a successful outcome. Likewise, recalls may involve multiple organizations and/or departments. And it is always beneficial to identify a recall backstop – perhaps a recall expert or a recall agency with full-service recall capabilities. Being able to mobilize and coordinate the efforts of all of these organizations and departments requires forethought and practice in order to assure a successful outcome.
Many parallels can be drawn between a potentially devastating fire and a product recall. Just as you protect your family and community from fire, you can protect your business during a recall. When you invest in fire insurance, consider recall insurance as well. When you practice a fire drill with your children, families and co-workers, run a recall drill with your company. After all, fighting a fire takes the same tenacity and courage as executing an effective recall.
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