Longo's says new product recall program brings many business benefits

A leading Ontario grocery chain is rolling out GS1 Canada's enhanced product recall program and relates how it will simplify, speed up, and standardize product recalls.
11/5/2009 7:37:00 AM By: Joaquim P. Menezes

Longo Brothers Fruit Markets Inc. Web site notes that "attention to quality, freshness and goodness" is very much a Longo's family tradition.

Executives at the Mississauga, Ont.-based grocery retail chain say to live up to this goal, all its stores need to be stocked with fresh produce, in the right quantities, in response to constantly changing customer demands.

But the scope of that mandate, they say, goes much further. It also means ensuring items in each of their stores meet Canadian safety standards, and that recalled products are removed from store shelves with speed and precision.

To accomplish this, the Ontario grocer has rolled out an enhanced product recall system from GS1 Canada. (GS1 Canada is a member of GS1, a global, non-profit supply chain standards organization).

Longo's has 18 store locations in Ontario, as well Grocery Gateway, its online grocery business, which it acquired in August 2004.

The new GS1 Canada product recall program was officially launched Tuesday at a function in Toronto. Initially, the program is being implemented in the grocery sector, and a subsequent rollout to the general merchandise and pharmacy sectors is being planned for 2010.

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The cost of the program would depend on the size of the participating business, said Eileen Mac Donald chief operating officer, GS1. She said it would range from $250 to $1,700. "GS1 Canada will provide subsidies, on an ongoing basis, to ensure companies of all sizes can participate and no one is left out."

Total [and timely] recall

Longo's is one of the first major grocery chains to implement the enhanced system across all its 18 stories. Key expected benefits include streamlining and standardizing the process, especially communication between vendors and Longo's recall coordinator. And this, it turn, is expected to significantly improve the speed and safety of the recall process.

"As a retailer, we need to ensure we have all the information required to execute a timely recall," said Robin Maile, manager, food safety at Longo's. "It's also crucial that recall information is comprehensive and provided in a consistent format."

Maile's role at Longo's encompasses all aspects of food safety -- from regulations and compliance in stores to recall executions, from nutritional data and compilations, to dealing with customer food complaints.

When handling recalls, she said, standardization of communication between manufacturers/vendors and retailers is crucial.

As a grocery store that interacts with hundreds of vendors, she said Longo's used to receive recall information in many disparate formats, such as e-mail, or through its category managers and so on.

"With the new online system all this information will now be accessed by our retail coordinators on a single online portal, so they don't have to search in different areas to pull the critical pieces of data needed to execute a recall."

Maile said the enhanced GS1 Canada Product Recall System doesn't change the way Longo's handles recalls at the store level.

"It does ensure that -- as a reatailer -- we get the critical information needed to execute the recall in a timely, accurate manner."

Canadian retail organizations say standardization of recall information is one of the most useful features of the new system.

"Our members know that reputation and brand are linked to consumer confidence and protection, so they understand the importance of a strong product recall system, said Diane Briseboise, president and CEO, Retail Council of Canada.

The Retail Council is a non-profit outfit representing more than 30,000 retail stores coast to coast.

The Council is often the first point of contact when a product recall occurs, Briseboise noted. "When working with retailers during those recalls, it became clear that without a national, harmonized system it was impossible to ensure the right people received the appropriate information in a timely manner, and the right product was removed or disposed of."

If this doesn't happen, or the retailer can't provide proof that the recall has been properly executed, there could be serious legal and reputational consequences, she said.

The enhanced GS1 program reflects this emphasis on information standardization, authentication and security.

At the Toronto launch event, Tim White, director of product development at GS1 demoed key aspects of the system, which he played a key role in developing.

The program uses a series of questionnaire type forms that were built based on the input of Canadian businesses. They ensure that all the information that businesses consider essential is included in the recalls communications process.

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