When it comes to consumer safety, brand loyalty, and bottom line sales, nothing is more detrimental than product recalls. Since 1999, the number of recalls in the United States has more than tripled, and the figures are only showing signs of increasing. There were 1,597 recalls in 2009 and 1,752 recalls in 2010. Experts are contributing the problem to a number of outside factors - the most common one being an increasingly complex global supply chain. Third party suppliers used to be regional and long standing, however as of recently, these suppliers have resided halfway around the world.
In a recent Deloitte study, a company with poor recall execution could see a 22% drop in their shares within two weeks of a recall announcement. On average, a product recall would cause a hit of nearly a full quarter of profits for the recalled product, marketing to repair the long term brand damage, spillover negativity that reduces sales of other products, product liability claims, regulatory fines, and the cost of restoring status among the distribution channels.
Apparent Need for Self-Regulation
In a time when people are analyzing what they spend on everyday necessities, a product recall could severely impact a consumer’s outlook on a certain brand. Customers want to feel as though the products they choose are among the safest and highest quality available. A recent study reported that 76% of respondents indicated they are more concerned now than five years ago about the foods they eat and 57% have stopped using a specific product after a recall.
There is no better way to improve customer good-will and brand loyalty as self-regulation procedures - including data collection, process standardization, business intelligence, traceability, product lifecycle management, and data management. Manufacturers who fail to see this will delay the remediation effort, cause redundant assets to be depleted, and ultimately increase the recall scope. This scope will be determined by the accuracy of the traceability genealogy through all of the process steps and mixtures after removing the contamination; so self-regulation and product lifecycle management is crucial.
Productivity is Key
Whether the issue is product contamination, outdated packaging, counterfeiting, or diversion, Acsis’ ProducTrak tools can spread out to every point in your supply chain, giving you the information you need to respond effectively. The Acsis ProducTrak Suite integrates with your current ERP system and other best-of-breed solutions for warehouse management, logistics and CRM, allowing you to leverage your existing IT investment to gain full product visibility.
ProducTrak unlocks the data in your IT assets, enabling you to probe deeper and more accurately into your processes. It helps give you a clear, detailed, immediate picture of events leading up to the recall—and points the way to better and faster decisions. Furthermore:
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ProducTrak Mobile ensures complete product lifecycle management – from raw material, through production, and delivery to the hospital, wholesaler, or retailer.
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ProducTrak SPDM is a serialization management solution that works with existing ERP systems to enhance product visibility at the item level and ensures compliance with ePedigree mandates or Food Safety Modernization Act requirements.
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ProducTrak Parcel Pack provides a station-based solution for managing the packing and shipping processes for serialized and non-serialized product and updates the ERP system automatically for more accurate inventory levels.
Acsis ProducTrak solution has the full functionality to track and trace individual products or assets through its entire lifecycle; as well as manage contract manufacturers, packagers and suppliers at the push of a button. We also provide the flexibility of selecting only the modules needed to address their specific issues or government mandates. That’s the power of Acsis.
To learn more about how we are helping companies manage product recalls with greater speed and precision, contact us at (856) 673-3000, or schedule a demo.