@Risk

No one wants to deal with a product recall.

But, for those in the medical device and life sciences industries, the challenges are more intense than ever before. Globalization has created elongated supply chains, and that elongation has decreased visibility and complicated communication. Obviously, that’s not a desirable combination at all, considering that delays in handling a medical device recall can literally mean the difference between life and death.

Fortunately, many medical device and diagnostic manufacturers are now taking a hard look at their existing processes so that they can improve the way they manage product recalls.

Denise Odenkirk and Tom Kozenski explore these issues in detail in their recent article, How to Handle a Medical Device Recall, at Medical Device and Diagnostic Industry Online.

I was pleased to see that Odenkirk and Kozenski recognize that both automation and integration have become critical components for effective supply chain management. They write: (more…)

Over the past year, Toyota has agreed to pay $48.8 million –or the equivalent of about $30 per Toyota vehicle sold in the US in 2010 –in fines related to multiple product recalls.

The two latest penalties, announced earlier this month, amount to $32.425 million –$16.375 million in one case and $16.050 million in the other –in response to the US Department of Transportation’s assertion that Toyota failed to comply with the requirements of the National Traffic and Motor Vehicle Safety Act for reporting safety defects to the National Highway Traffic Safety Administration (NHTSA).
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Federal officials now estimate that as many as half a billion salmonella-tainted eggs have been circulating in the US food supply over the past few months. Hundreds, if not thousands, of people have been sickened with salmonella linked to the contaminated eggs, prompting three recalls over the past two weeks –the third was issued last Friday.

A small handful of egg farms in Iowa appear to be at the center of the outbreak. Two of these farms are operated by Hillandale Farms of Iowa, one of the largest egg companies in the US; Wright County Egg Farm operates the other five. These farms share several common suppliers, including those for chicks and feed. According to the AP, this supplier has a history of violations and controversy. (more…)

Earlier this month, the Kroger Co. became the first national retail chain to encourage its suppliers to subscribe to Rapid Recall Exchange, an online service that standardizes and accelerates food and product recalls and withdrawals.

The Rapid Recall Exchange, developed by GS1 US in collaboration with the Food Marketing Institute and Grocery Manufacturers Association, is the industry’s only online standardized recall notification system. It uses consistent forms and processes, so that when a recall is issued, retailers receive the same complete information, including product images and handling instructions.

Kroger, the largest traditional grocery retailer in the US, is asking all of its suppliers to subscribe by July 1, 2010. Once subscribed, suppliers using the Rapid Recall Exchange can quickly alert retailers and provide all critical recall information in one communication – 24 hours a day, seven days a week. This will enable Kroger to quickly remove recalled products and reach out to customers with detailed information about the recalls. (more…)

From Toyotas and Fords to airplane seats and black pepper –it’s only February 19 and unfortunately, it already appears that 2010 is becoming the year of the recall.

Of course, that also means that supplier relationships are in the spotlight like never before. Expanding global supplier networks are under scrutiny –and for good reason. In some cases, they have proven to be unwieldy, unpredictable, and untrustworthy.

Have you taken a hard look at your own supply chain? Are you doing all you can to mitigate the possibility of key suppliers reporting misleading information, shipping sub-par products, or otherwise cutting corners in ways that could come back to haunt your business? How can you protect yourself? (more…)