On October 16, 2013
Logistics issues for petfood companies in growth mode
Companies emerging from startup stage, now in full growth mode, are most likely to need the logistical help to manage a current-day recall situation
When I ask our partners in the petfood industry what’s keeping them up at night, the potential for recalls and the Food Safety Modernization Act are frequently on their lists of insomnia inducers. Companies currently in a growth mode are especially vulnerable to the headaches and expenses these issues can impose. Even recalls due to circumstances beyond a company’s control, or stemming from a problem initiated by a vendor, are unwelcome. A recall can damage valuable assets such as brand image and integrity, both of which are only earned after years of hard work, and of course the petfood industry is no stranger to recalls. Not only can brand image be damaged, the financial consequences can be devastating. Whether you transport the product back to your facility or have it destroyed, multiple complicated logistical elements need to fall in place. Those companies emerging from startup stage, now in full growth mode, are most likely to be frustrated about the logistical nightmare a current-day recall can impose. Many entrepreneurs-turned-executives spend significant portions of their time managing sales and customer relationships. They are often surprised by the amount of management-level attention a complicated logistics system presents. Often there are simply not enough associates skilled in the nuances and challenges that are sure to come with complex orders. The key here is to have the systems capability, at least to the pallet level, to know to whom and when product was shipped according to manufacturing or lot code. Many companies aren't equipped to ...