Costco has robust systems for product tracing, recall response, and record keeping to protect members. They scan items multiple times during distribution and store electronic data and records with vendors. For recalls, Costco blocks and pulls items quickly before announcements, notifies members via phone calls and letters, and works closely with various regulatory agencies. Costco aims to keep recall communications simple and quick, maintain excellent records, and continuously improve information sharing and timeliness of response.

1. Traceability & Recall Response at Costco
A Gl b l Perspective
Global P ti
Improving Product Tracing of Foods: More
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Rapid Outbreak Response
Washington DC 12-09-09

2. Item Traceback---Working Together
• EPI Work with the States and CDC.
EPI---Work CDC
– What did the member really buy?
• Vendor distribution information. Follow the money
– P h
Purchase Specifications.
S ifi ti
• Costco Vendor Ingredient Validation Program
– Purchase Specifications.
• All i
items are scanned multiple times (Vendors must comply
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with standards)---both in and out of our system.
• Electronic data storage and mining (real time)
• No paper records !!!!!!
• Share records with regulatory groups as appropriate.

3. Recalls at Costco
• Always protect the Costco Member.
• One step back---For each supplier in the chain.
• One t f
O step forward----Retail---Costco members.
d R t il C t b
• Block & pull the item---Quickly---Before the
announcement---Keep it simple.
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• Member Notification--Who? Why?
• Phone calls?? 870,000 per hour on the day of
the
th recall or i id t Cl
ll incident. Class 1/Quality
1/Q lit
• Letters to explain details.
• Never Ever Wait !!!

4. Recall Support
• National
– USDA/FSIS - Any meat or poultry items
– FDA - Everything Else!!!
• State
– State Environmental Health Departments
– County Health and Food Inspection
– City Health Departments
• On any given regulatory recall there can be up
23 different agencies involved needing
information.

5. What Information Is Needed?
• Is anyone Sick? Suspected reason for the recall,
• Product Identity
– It
Item N b N
Number, Name, Fl Flavor, Si UPC
Size,
– Codes, Lot Number, Sell By / Use By
• Vendor Contacts
– Recall Coordinator
– Media /Member Contact Numbers
– All item distribution information
– Item disposition plan

6. Keep it Simple & Quick !!!
• Communications to the buildings
– Short, concise, item removal and disposition
instructions to the building manager
– Simple recall explanation with vendor
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contact numbers for the membership desk.
• Call Center
– Recall explanation/member instructions with
vendor contact numbers.

7. Keep Excellent Records
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• How much was pulled from sale?
• How much was returned from members?
• How much has been destroyed?
• Has th building
H the b ildi manager confirmed and
fi d d
signed off on each document?
• Each of the 23 agencies that we talked about
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earlier will do a recall effectiveness evaluation.

8. Improvements
• A single recall information system.
– Federal, state, local
• Quicker information flow.
• Timely regulatory communications.
• Do it once. Don’t wait until Friday evening.
• 100% disclosure on all issues.
• Accurate media representation