1. Nestlé’s Approach to Product Recalls Johann Grosz Quality Manager Africa, Asia, Oceania
2. 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
3. Introduction Nestlé sells around 1000 Million (1 Billion) Products/Day .
4. 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
5. 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
6. Consumer Trust
7. 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 ?
8. 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 …
9. 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.
10. Crisis Management at Nestlé
11. 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.
12. Crisis Management Support Document: Handbook for Crisis Preparedness and Crisis Management. Part 1 = Crisis Preparedness Part 2 = Crisis Management
13. 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
14. 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
15. 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
16. 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 ?
17. 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
18. Summary II. Strong Crisis Management - Consumer first - Quick reaction - Transparent, honest communication If a crisis is well managed Limit the damage