CSCMP's Supply Chain Quarterly
October 16, 2018
Forward Thinking

Product recalls vex most supply chains, survey finds

Three-fourths of supply chain executives have little confidence in their ability to trace recalled products and monitor their current status.

Nearly three out of four supply chain chiefs polled in a recent survey said they are not sure they could get their hands on their products in the event of a recall.

That's one of the key findings in "On the Trail to Traceability," a study released by the supply chain software vendor RedPrairie Corp.

Seventy-two percent of the 130 supply chain executives surveyed said they are not completely confident in their organization's ability to trace products that have been recalled and determine their current status. The study canvassed companies in the consumer products, life sciences, and food and beverage sectors.

Another alarming finding was that only 51 percent of those surveyed said their companies could execute a product recall within hours. About 70 percent of the respondents said they have difficulty coordinating recalls with suppliers and distributors.

The study found that 46 percent of respondents struggle to stay compliant with government regulations regarding product safety and recalls. In addition, less than 20 percent of survey participants have deployed technology to help automate a trace-and-recall process.

Many supply chain executives said they are clearly worried about the consequences of a poorly executed product recall. Almost one-third of those surveyed said their ineffectiveness in tracing recalled items would have a negative financial impact on their companies.

Gateway Research conducted the survey as part of RedPrairie's research into "Commerce in Motion." Click here to view the entire report.

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