CSCMP's Supply Chain Quarterly
October 23, 2018
Forward Thinking

Product recalls vex most supply chains, survey finds

Respondents voice concerns about brand impact of recalls.

Nearly three out of four supply chain chiefs polled in a recent survey said they would not be able to get their hands on their products in the event of a recall.

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

Of the 130 supply chain executives surveyed, 72 percent said they are not completely confident in their organization's ability to trace the status of products that have been recalled. 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 are worried about the consequences of a poorly executed product recall. Almost one-third of surveyed executives said their ineffectiveness in tracing recalled items could have a negative financial impact on their companies.

Gateway Research conducted the survey as part of RedPrairie's research into "Commerce in Motion."

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