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Case
Study: Operational Plan Development / Organizational Crisis Readiness
Product Recall: Ecoli / Spinach Outbreak
Challenge
To design and create a functional executable plan for a last minute
product recall, on a nationwide scale for the United States.
Introduction
The Natural Selection Foods spinach recall of September 2006 was
a bankrupting disaster for the Californian producers, their distributors,
their suppliers and end users in 29 states. With 20 E-coli outbreaks
in the fresh food packaging industry since 1990, this high probability
risk should have been recognized and a business continuity and readiness
plan had to be created. Industry criticism that it is not as stringently
regulated as it should be was already rife in Washington DC, and
this particular national outbreak has now been recognized as setting
the industry back years.
Stakeholders
Food and Drug Administration, Twenty Nine various spinach brands
nationwide, customers, shareholders, the Spinach industry, local
economy and suppliers. Media and Broadcast, US exports, Significant
increase in industry operating costs.
Strategy/Process
Due to time sensitivity in matters such as a recall, the type of
plan fro this situation needs to be straight forward, easily understood
and easy to implement in very short notice. The product producing
company, Natural Selection Foods LLC, needs an executable organizational
crisis readiness plan in place within its own structure. Once alerted
to a possible situation, they need to react to the situation immediately
and put their plans into action (Examples: notification of executive
mgmt, official media statements, halt on current operations and
contact with FDA)
The Rhiannon group would work with the client to have an effective
communications design existing between all suppliers and distribution
partners. An on site evaluation of all partners operational locations,
to ensure they were physically equipped to deal with any situation,
would have already been performed. A readiness exercise module would
have to be practiced at each location periodically, to ensure all
partners are ready. Only then could our client be in an effective
position to perform a recall. The Rhiannon Group would ensure that
our clients were educated in the government processes in dealing
with these kinds of situations; again to be better prepared should
a recall need to happen. Once the FDA had made a decision, our client
and their industry partners are automatically ready to respond immediately
nationwide scale, freeing up Natural Selection Foods LLC executive
management time, to limit the impacts of the situation.
Result/Conclusion
It is extremely important to recognize the impacts situations can
have on your operation that are out of your control. The fresh food
packaging industry is one such industry. However, there are processes
you can out in place to limit the impact that adverse situations
will have in any industry, and it is the client that has to recognize
this fact, to stimulate the responses that will need to happen.
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