Achieving over 99% accuracy in physical counts and fastest product locking of 2 minutes, this quarter's mock recall confirms our inventory accuracy and team readiness. This level of performance is critical for protecting a brand's reputation and minimizing the disruptions that can occur when a recall is not handled accurately and swiftly.
This quarter’s mock recall exercises were conducted across a selection of Stord's core fulfillment facilities, providing an indicative sample of our operations.
The objective was to rigorously test and validate the effectiveness and efficiency of our established recall processes to confirm our preparedness in executing a real-time product recall successfully. This measure is critical for upholding the integrity of our operations and maintaining the highest standards of product safety and customer trust.
Maintaining robust recall capabilities is not just a best practice, but often a critical regulatory expectation. The U.S. Food and Drug Administration (FDA) emphasizes the importance of having effective recall systems in place to protect public health1. While industry best practices recommend annual mock recalls to evaluate these systems2, Stord's commitment to excellence is demonstrated by our execution of these mock recall exercises on a quarterly basis.
This frequency significantly exceeds standard recommendations, allowing us to continuously validate and refine our processes, identify potential areas for improvement with greater agility, and ensure our teams remain exceptionally prepared. This quarterly approach emphasizes Stord's dedication to maintaining the highest levels of product safety and responsiveness, surpassing baseline industry expectations as a leader in operational excellence and customer protection.
Mock Recall Overview
To thoroughly evaluate our recall preparedness, this quarter's mock recall exercise simulated a real-time product withdrawal scenario, including the following steps:
Simulated product withdrawal and traceability: This involved identifying a hypothetical “recalled” product (or a specific lot number) and initiating the process of tracing its journey through our fulfillment network. This tests our ability to quickly pinpoint the location of affected inventory, both within our facilities and in transit.
Physical inventory counts for system validation: Our teams conducted physical counts of the “recalled” product. This step serves to verify the systemic accuracy of our Warehouse Management System (WMS) and ensures that our digital records accurately reflect the physical inventory on hand. Discrepancies identified during this stage reveal areas for improvement in our inventory management processes.
Rapid product locking: Upon notification of the simulated recall, our operations teams at each site executed the immediate “locking” of the affected product within our systems. This prevents any further outbound shipments of the potentially compromised inventory. This step is crucial for containing the issue and minimizing the scope of a real recall.
Efficient data retrieval and reporting: Our Inventory Control and Quality Assurance (ICQA) teams were tasked with rapidly retrieving all relevant data associated with the “recalled” product. This includes generating reports on inventory levels, locations, lot numbers, and historical shipping information. The speed and accuracy of this data retrieval are necessary for informing recall decisions, notifying affected customers, and fulfilling regulatory reporting requirements.
Mock Recall Performance
The results provide valuable insights into our effective recall capabilities and highlight areas where we have continued to enhance our already strong processes.
Inventory Accuracy
Inventory accuracy is verified through physical inventory counts. This process involves a detailed, manual verification of all units of the “recalled” product present within the facility. Teams systematically locate, count, and compare these physical quantities against our WMS records. This side-by-side comparison allows us to identify and reconcile any discrepancies to guarantee that our system accurately reflects the actual inventory on hand and that we can confidently account for all potentially affected units during a real recall scenario.
Physical inventory counts performed at ATL1 and RNO4 achieved excellent accuracy:
ATL1: 100% accuracy
RNO4: 99.94% accuracy
This high accuracy (over 99%) achieved in our physical inventory counts significantly surpasses the average industry inventory accuracy rate of around 91%3. Our performance even exceeds the benchmark for "world-class" inventory accuracy of 95%3, which validates Stord's robust inventory management processes and ensures highly effective product retrieval during a recall. Building on this foundation, we perform regular audits and are actively pursuing higher standards in inventory accuracy through ongoing system workflow improvements, strategic automation initiatives, and rigorous quality control checks. Our aim is to continuously elevate the benchmark for inventory accuracy and reliability.
Response Times
The speed of our initial response in a recall scenario is a critical factor in minimizing potential risk. This quarter's mock recall exercise demonstrated our commitment to rapid action, with all key initial steps completed well within our internal Service Level Agreement (SLA) of responding, locking inventory, and pulling necessary reports within two hours.
While the individual facility response times were notably swift, consistently ranging from initial alert to product lock in under 30 minutes, our primary focus remains on adhering to and exceeding our established SLA. This ensures a reliable and timely response for our customers in any recall situation.
The results of this exercise confirm that our facilities are operating effectively within these stringent internal targets. This reinforces our capacity for rapid containment and efficient information retrieval, in turn mitigating potential impact and upholding our commitment to operational excellence.
Dedication to Excellence and Continuous Improvement
The results demonstrate the reliability and efficiency of our recall procedures. They reaffirm our commitment of being a proactive and dependable fulfillment partner. Our strong performance in areas like inventory accuracy and response times, along with our dedication to continuous process improvement, show our team’s readiness to quickly contain any issues, minimize the scope of a potential recall, limit customer exposure, and protect your e-commerce brand.
Don't leave your brand's reputation to chance. Talk to us about how our approach to recall readiness can provide a more secure fulfillment solution for your business.
