Logistics Blog | The Grimes Companies in Jacksonville, FL


Recently, medicinal product recalls plagued China. Reporting agencies revealed that probable carcinogens were included largely in vaccine and blood pressure medicines. How does that affect people in the US? The FDA issued a recall in July 2018 on some US drugs. Investigations revealed that some drugs incorporated a Chinese-sourced ingredient (valsartan) exposed to a chemical studied to be a probable carcinogen. A mystery about how the contamination happened continues.

The news item explosively suggests that this problem is common in China. It eludes to the idea that dishonestly running a business is not such a big deal to some Chinese businesses. Industries that use loopholes, some of them criminal loopholes, are justified in the name of making profits. However, a product recall occurs, supply chain can be affected in several ways. If you run a supply chain company, here are some things to consider about product recall may affect your business:

1. Products that are recalled probably don’t get shipped back to the manufacturer to be tested, repaired or destroyed. If we’re talking about perishable food or medicine recalls, these items can’t be “corrected.” Instead, they must simply be destroyed correctly. This means the business that pulls the defective product from the shelves would destroy it locally. Thus, shipping and packaging may not be very impacted but warehousing might be impacted.

2. Warehousing could be impacted if space is needed to temporarily store defective products. However, if refrigerated space is needed, products may need to be kept in a quarantined space to protect from contaminating other products.

3. Recalled products might need new labels and packaging. Therefore, product recalls might require new packaging for products after the defect is corrected. When corrections are made, shipping (or reshipment) and warehousing might also be affected.

Effective planning to accommodate product recalls can help you run your business most effectively. By brainstorming how product recalls can affect your supply chain, you can more productively run your business.

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