Purchasing departments buy goods and services for their organizations. Like other departments, these teams need to adapt quickly to a product recall situation. Otherwise, the consequences could be disastrous.
In this post, we look at the role of the purchasing department in product recall management, and how digital tools help these talented teams.
What Does the Purchasing Department Do?
The purchasing department is responsible for the procurement of goods and services in their organization. This includes purchasing raw materials and components for manufacturing processes, as well as buying services for the day-to-day operations of a business. Purchasing departments communicate with vendors and suppliers in an organization’s supply chain so communication is paramount.
The responsibilities of the purchasing department, however, become more complex during a product recall management situation. When an organization receives a recall notice from the federal government, these teams might need to purchase alternative goods and services without a moment’s notice. Departments also have to communicate with other in-house teams (think production, operations, and management) and suppliers/vendors to ensure the safe removal of faulty materials and products.
Like many other departments within an organization, purchasing departments need to act fast. Delaying action can make a recall situation even worse, especially if teams purchase additional units of recalled products or materials. Here, public safety is the top concern. However, slow recall response times could cause legal action and government fines. Agencies like the FDA can also start criminal proceedings against organizations that fail to act quickly in a product recall situation.
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What are the Challenges for Purchasing Teams?
In an ideal world, managers share information about product recalls with the entire organization, including purchasing teams. However, this is just not possible all the time. Larger companies with many computer systems and ineffective communications channels might not receive vital information until it’s too late. This can have a disastrous effect on public safety and, in cases of poor product recall responses, attract fines from the government.
One of the biggest challenges is, therefore, a lack of communication. Organizations that don’t collaborate on recall management properly can be slow to remove products from shelves and supply chains. For purchasing teams, a lack of communication can result in purchasing incorrect products and materials.
Unfortunately, many organizations rely on too many digital tools, which complicates things. For example, purchasing teams might use one system, while managers might use another. This results in poor recall responses.
Another problem is information comprehension. The FDA and other departments issue lots of information about product recalls, and much of this is irrelevant to purchasing teams. By streamlining product recall information, organizations can improve product recall response times in purchasing departments.
Recommended reading: Common FDA Recall Terms and Definitions
Why Does Mock Recall Planning Matter?
Currently, purchasing teams (and the rest of an organization) might use ERP systems to handle product recall management, but this can overcomplicate the process. Companies that invest in a recall management platform as well as mock recall planning, however, can enhance communications and improve recall responses. This is why:
- With a good recall planning and training in place along with a recall management solution, purchasing teams can access information from one centralized database
- Purchasing teams can safeguard sensitive information about product recalls.
- Purchasing teams can collaborate on recall management with other departments and suppliers/vendors
Purchasing teams that rely on manual product recall management methods can’t respond to recall notices effectively. This can increase the chances of expensive fines from the federal government. The FDA (and other departments) issue both civil and criminal penalties to organizations that fail to manage a product recall effectively.
Recommended reading: Product Recall and Response Communication Steps: What You Should Know
Meet Mock Recalls
MockRecalls is a mock recall training and consulting program to test your recall readiness. We are purely focused on protecting your product investment by working with you to create a new recall plan or analyze your current recall plan and then put it through a mock recall or recall simulation test to insure you are prepared for a possible product recall.
Final Word
The purchasing department might need to adjust their purchasing workflows during a product recall crisis. However, they need insure that they can handle the recall.
Looking to test your product recall readiness with your purchasing department? MockRecalls will help create and/or test your recall program. Click here to learn more or call us!