Product Recalls: Did you know? 2008 (Jan – Oct) recalls in medical field* 9M toys recalled in last year alone , “Slim chance of getting back even 10%”** Other examples: Sony replaces 9M laptop batteries, Nokia offers to replace 46M cell phone batteries, Bad flu shots (Kaiser) impact 8-10K people in Northwest (10/23) etc. Data obtained from www.recalls.org; The medical field is being highlighted as products are regulated and highly controlled, and the impact of a recall of any of these items typically has significant impact on safety - huge liability exposure for the institution that misses a recall notice. They require very timely response in that is common for only one "batch" of an item to have a recall problem. ** Kids in Danger (non profit for improved safety standards for kids products) Category # of Recall Events # of units Recalled Medical Devices 638 97,102,171 Drugs 111 245,481,569 Biological 1165 1,961,127

2008 (Jan – Oct) recalls in medical field*

9M toys recalled in last year alone , “Slim chance of getting back even 10%”**

Other examples: Sony replaces 9M laptop batteries, Nokia offers to replace 46M cell phone batteries, Bad flu shots (Kaiser) impact 8-10K people in Northwest (10/23) etc.

Data obtained from www.recalls.org; The medical field is being highlighted as products are regulated and highly controlled, and the impact of a recall of any of these items typically has significant impact on safety - huge liability exposure for the institution that misses a recall notice. They require very timely response in that is common for only one "batch" of an item to have a recall problem.

** Kids in Danger (non profit for improved safety standards for kids products)

Current Challenges Lack of visibility & control within and across extended enterprise Electronic record and actual inventory / location typically out of sync within 4 walls Participating parties usually have disparate electronic systems in place Barcodes are a non scalable way to create an on-demand search and locate system Multiple parties across firewalls need to be involved to execute a successful recall process in a non-disruptive manner Data is federated, business process is distributed Distributed, secure system required to execute and track a recall business process across the extended enterprise

Lack of visibility & control within and across extended enterprise

Electronic record and actual inventory / location typically out of sync within 4 walls

Participating parties usually have disparate electronic systems in place

Barcodes are a non scalable way to create an on-demand search and locate system

Multiple parties across firewalls need to be involved to execute a successful recall process in a non-disruptive manner

Data is federated, business process is distributed

Distributed, secure system required to execute and track a recall business process across the extended enterprise

Overall Impact Impact on company’s bottom-line Huge liability exposure for manufacturers and organizations upstream that miss a recall notice Enormous expenses occurred to locate and remove tainted products Impact on people’s lives Damper on consumer benefits from a globalized supply chain in a ‘flat’ extended enterprise world Loss of a company’s name in the marketplace Plummeting of public confidence Continued presence of dangerous non-recalled products in supply chain

Impact on company’s bottom-line

Huge liability exposure for manufacturers and organizations upstream that miss a recall notice

Enormous expenses occurred to locate and remove tainted products

Impact on people’s lives

Damper on consumer benefits from a globalized supply chain in a ‘flat’ extended enterprise world

Loss of a company’s name in the marketplace

Plummeting of public confidence

Continued presence of dangerous non-recalled products in supply chain