Statistics show that recalls are a real threat to doing business. A food recall is when a food producer takes a product off the market because there is reason to believe that it may cause consumers to become ill. In 2019, the USDA recalled over 20 Million pounds of food and beverage product that was potentially dangerous to the public.
One of the most detrimental risks to manufacturers of consumer-packaged goods (CPG) are recalls. Not only does this carry financial penalties in lost product, lost sales, and government fines, but also the greater threat to brand reputation and future demand. Food recalls may happen for many reasons, including:
The problem is real and can cost tens of millions of dollars. Here are a couple of recent examples within the consumer products industry:
Mislabeling- The FSIS Issued a Public Health Alert for Beef Jerky Products Due to Misbranding and an Undeclared Allergen. The product may have contained anchovies, a known allergen, which was not declared on the product label.
Contamination- Nestlé Prepared Foods Recalled Not-Ready-to-Eat Pepperoni Hot Pockets Product Due to Possible Foreign Matter Contamination. Approximately 762,615 pounds of not-ready-to-eat (NRTE) pepperoni hot pockets product may have been contaminated with extraneous materials, specifically pieces of glass and hard plastic.
Many industry solutions for recalls have focused on information traceability, so if a recall is needed, the exact lots, batches and distribution points can be identified so that users and retailers can be notified and act. But to truly tackle the problem, mechanisms should be put in place to prevent the recall from happening in the first place including:
ThinkIQ, a pioneer of Digital Manufacturing Transformation SaaS and delivers unprecedented material traceability and insight into ways to improve yield, quality, safety, compliance, and brand confidence. Our fact-based granular and data-centric contextualized view of material flows, and related provenance attribute data integrates into existing IoT and OT infrastructures and crosses supply chains to manufacturing processes and beyond. Our customers have saved $10’s of millions by identifying waste and underperforming assets, as well as reducing warranty reserves for quality and safety issues.
Contact us today to learn more about how this transformational technology can help reduce recalls at the source.