Nestlé’s Approach to Product Recalls Johann Grosz Quality Manager Africa, Asia, Oceania
Presentation Introduction - Quality Products - Nestlé Quality Management System (Pro-active) 1. Crisis Preparedness (Pro-active) 2. Crisis Management (Reactive) Product Recall (Presentation Title) is a possible action during Crisis Management
Introduction Nestlé sells around 1000 Million (1 Billion) Products/Day .
Introduction Consumers trust Nestlé daily and buy our products again and again. Claim: Quality is our most successful product! Quality: - safe products - legally compliant - sensory, preferred products - nutritional products - consistent quality - convenience aspects - good value for money Consumer Satisfaction
Introduction Quality, as we all know, does not happen by chance. We apply the Nestlé Quality Management System to achieve Quality & Consumer Satisfaction and to prevent Quality problems. - ISO 9001 aligned, process focussed approach - Quality is everyone's commitment - ISO 22.000 in our factories (Food Safety) - Every function must contribute to Quality - Lean & TPM programs - Aim: Zero defects Food Safety – our consumers trust Nestlé
Quality System delivers Quality Products - There is no perfect Quality System - Failures are rare events - Failures can lead to Quality Problems and & Crisis Situations What are possible reasons for Quality Problems ?
Reasons for Quality Problems - Contaminants in supplied materials - Foreign bodies - Packaging material issues - Allergen issues (hidden allergens) - GMO - Technical breakdowns, e.g. leakages - Human errors - Sampling - Criminal Acts - False analysis results & wrong interpretation - etc. Wrong attitude: This cannot happen to me …
Crisis Management: Good or Bad Bad Crisis Management: - Company image first - Not consumer focused! - Cost driven (Recall will cost money) - Delayed reaction - Ambiguous communication – different messages - No clear leadership; not managed by the Top Management Crisis must be managed Consumer Trust built up over years can be lost.
Nestlé Quality Management System Management Process: Crisis Management Each Market, Business, Zone and the Centre implement an effective Crisis Management procedure in a manner that protects our consumers , our assets and Nestlé’s image and brand. Key sentence: … protect our consumers …. If something goes wrong for quality: “Put People First” : The health and safety of our consumers, employees, customers and people in the local communities is our main concern.
Crisis Management Support Document: Handbook for Crisis Preparedness and Crisis Management. Part 1 = Crisis Preparedness Part 2 = Crisis Management
1. Crisis Preparedness (Market) 1.1 Issue Round Table (Experts discuss possible forthcoming problems) 1.2 Monitor Media 1.3 Relationship with Media 1.4 Relationship with Authorities 1.5 Set up a Crisis Committee Crisis Manager, Crisis Coordinator & Other Functions Crisis contact list 1.6 Crisis Scenario Planning 1.7 Identify your Stakeholders Stakeholder list 1.8 Internal communication rules 1.9 Training & Simulation 1.10 Crisis Room & Resources 1.11 Verification - Preparedness
2. Crisis Management (Market) 2.1 Information about a Quality Problem from Suppliers, Customers, Factories, Consumer Service, Supply Chain, Authorities, Media etc. 2.2 Evaluation by the Technical Manager & Quality Manager + collect relevant information: incident details, traceability results (!), complaint history, scientific information etc. Result can be: Activate the Crisis Committee
2. Crisis Management (Market) 2.3. Crisis Committee Crisis Manager (Top Manager) + Other Functions: - Evaluate the situation based on facts (safety issue, legal problem, product quality problem not safety related, media issue etc.) - Decision – fact based - e.g. in case of a food safety issue Public recall - Decision about the communication strategy Important: to speak with 1 voice Progress Review and adjustment of the action plan if needed
3. Crisis Management (Market) 3.4 After the Crisis - Assessment: How was the Crisis Management ? - Root Cause Analysis: - What happened ? - Why did it happen ? - What were the damages ? - Review of the Action Plan - What are the learning's ? - Root Cause Analysis Corrective Actions - Circular: Can this happen to you ?
Summary Things can go wrong and we saw in the past crisis situations & recalls for all types of products – cars, electronic hardware, toys, food etc. - Pro-active Quality Management System in place Prevent Quality Problems - Be prepared – attitude: A crisis can also happen to me. I. Crisis Preparedness In case of a crisis
Summary II. Strong Crisis Management - Consumer first - Quick reaction - Transparent, honest communication If a crisis is well managed Limit the damage