Product recalls are an unfortunate reality
in the consumer packaged goods industry. Both brands and retailers have to deal
with this on a regular basis, and when managed poorly the outcome can be
disastrous.
Here is a list of just a few of the most
recent product recalls from the CPG industry:
-
Advantage
Health Matters and Noorish Inc.: various products containing chia seeds or
sprouted chia seed powder from the marketplace due to possible Salmonella contamination have been recalled.
-
A-R Perogies brand perogies and
tortellini recalled due to undeclared wheat.
-
Various Old Country and
Winnipeg Old Country brand meat products recalled due to undeclared mustard.
-
Goody Shop brand sweet goods
recalled due to undeclared eggs, milk and wheat.
-
Boulangerie l'Escale brand
products recalled due to undeclared soy.
When a product is recalled, either through
a voluntary or mandatory recall, the end result is the same - that product
needs to leave the shelf. When a product is recalled, the typical process is as
follows:
·
The
product is removed from the shelf
·
The
product is shipped back to the warehouse
·
The
new product packaging is re-labelled if required
·
The
new product is shipped back to the store
What differs here is how the entire
process is handled. If the recall takes too long, and the shelves remain empty
as result of the recalled product, brand loyalty can quickly suffer due to the
delay. However, if handled quickly, and safe products are delivered and
restocked in a timely manner, loyalty will be far less impacted.
When a company practiced and
proficient in dealing with product recalls is utilized, many of the costs
associated with dealing with a product recall can be avoided. With many of the
examples above, the product recall solution was as simple as a product
re-labelling. When product is shipped back to the warehouse for re-labelling,
the costs can become quite substantial. However, when you work with a
merchandising company who can perform the re-labelling in-store, these costs
are significantly reduced, as is the time it takes to have the product back on
the shelf and ready to sell, thereby diminishing the loss of profit associated
with most product recalls.
If you are facing a product recall,
Storesupport’s emergency response services can help you deal with the entire
recall and help mitigate any losses as a result of the recall process. Contact
us today for a quick resolution: 1-877-421-5081.
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