denise webster director, trading law & technical fresh & easy neighborhood market
TRANSCRIPT
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Are You Ready For a Recall ?
Denise WebsterDirector, Trading Law & Technical
Fresh & Easy Neighborhood Market
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Complexity of supply chain Increase testing Better reporting Visibility Awareness Economics
Product Recalls on the Rise?
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Your Brand & Bottom lineCantaloupe Jensen Farms 2011 Deadliest foodborne illness outbreak in over 25years Listeria contamination resulted in over 30 deaths and hundreds of illnesses. Dollar volume of sales drops by 55.7% within four wks
Sunland 2012 42 people infected with Salmonella in 20 states240 products recalledFirst company to have registration suspended Facility & industry still trying to recover
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Mandatory Recall Authority Suspension of Registration Administrative Detention Expansion of Records Access Reportable Food Registry Mandatory Recall Fees
Preventative Controls Produce Safety
Impact of FSMA
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Destruction Costs (internal, DC, retail) Recall Communication (PR, Customer
Service) Transportation and Warehousing Additional Staffing/Consulting Cost Inspection and Testing Replacement Product Refunds to Customers Business Interruption Rehabilitation Expense
What’s the true cost of a recall?
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Identification codes (best before, lot code) GS1/ iCix /HarvestMark Depth a recall goes into the supply chain Depth the government may require a recall
Minimize exposure Quick response Recognition
Traceability
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How much does a recall cost companies? General product liability insurance enough? Strict liability implications
Premium vs. Deductible Standard vs. Optional coverage Likelihood of having an ‘Insured event’ Recoverable event or Catastrophic?
Recall Insurance
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pre·vent
To keep from happening To keep (someone) from doing something To anticipate or counter in advance To come before; precede
American Heritage Dictionary
Can you ‘prevent’ recalls?
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Supplier Assurance/Requirement Programs Combined 3rd party and own audit programs Risk-based decision making Integrated database systems Engagement Training
Retails - ‘Counter in Advance’
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Crisis manual with recall protocols, templates, press release and contact list
Point person for the business and regulatory agencies
Verified and validated processes Effectiveness checks Mock recalls Customer Service FAQ’s
Are you Ready?
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Transforming the Media How will you be remembered? How would you turn negative media
around?
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Questions?