Toilet
paper was one of the most topical issues across Jamaica last week, dominating
the news, talk shows and discussion programmes across Jamaica, for all the
wrong reasons. The sanitation and safety
of this intimate product came into sharp focus after a gynecologist raised
concerns that a particular brand of toilet paper was causing infections among
her patients. The firestorm of controversy, widespread concern and public
outcry that resulted from the handling of issue by the authorities and
stakeholders involved should be a wake-up call for many businesses that
inferior quality products and/ or a poorly handled product recall can kill your
brand and destroy your business.
Here
are some key lessons small and medium sized businesses (SMEs) should take away from
the toilet paper saga to avoid similar messes in the future:
1. Having
well established industry standards benefits your business
If
the industry in which you operate has no standards, guidelines or regulation it
is cause for concern not celebration. Lax industries are vulnerable to rogue
companies, organizations and individuals who may exploit the lack of regulation
for maximum profit, having little regard for good business practices and
maintaining proper standards. SMEs
should be proactive in alerting the authorities to the need for regulation and
work closely with them to create acceptable standards that will safeguard the
public, build confidence in the industry and its players, and ensure its
sustainability.
2.
You must ensure your product is safe
Product safety is
paramount. Whether you are the manufacturer or distributor of a product you must ensure that the final
product is safe, of satisfactory quality and fit for purpose. Manufacturers
should implement international safety standards, practices and procedures. HACCP and ISO are among the most notable
international certifications. HACCP is
a preventative approach to managing food safety. It means hazard analysis critical
control point - a system of procedures to control the process and sensitive
points in the manufacturing process to ensure the safety of the finished
product. Although it began as a food safety approach its use has expanded to
non-food items including cosmetic, pharmaceutical and industrial products. ISO (International Organization for Standardization) certification
provides an assurance that the product, service or system in question meets
specific requirements.
Distributors, although not the makers of
the product, have a responsibility to ensure their safety. Oftentimes
distributors are focused mainly on the logistics of getting the products from
the supplier to the trade and the margins they need to make from the product to
be profitable. Equal attention must be paid to the standards followed by the
manufacturer of the products they sell.
3. Regularly
test your products for quality
Manufacturers
and distributors should invest in random testing of their products rather than
relying solely on testing from the regulators.
This would place companies in a better position to identify and manage
quality or safety breaches before they explode into a public health issue and
public relations nightmare. It is important to use accredited laboratories whose
results can withstand scrutiny.
4. You
need a product recall strategy
No manufacturing plant can claim perfection.
Despite a company’s best efforts accidents, omissions, and errors can occur
that can compromise safety. It is for this reason that every producer and distributor
of goods should create and implement a product recall strategy to manage
situations where the safety of their products has been compromised. It is
usually a requirement of ISO. A product recall is a request by an entity for the
public to return a batch or series of products due to safety concerns. A good
product recall strategy will reduce the likelihood of injury to the consumer,
protect the company’s reputation, and limit its exposure to legal action
arising from negligence. The strategy should involve the preparation of a
manual that details the activities involved in assessing the extent of the
safety breach, estimating the amount of ‘bad’ product in circulation,
withdrawing the product from retail, regulatory and public advisories, damage
control /crisis communications, among others.
It is better for a company to issue a voluntary recall of their products
than for the regulatory authorities to do so.
5. You should be proactive and practice risk
management
Effective
risk management is proactive method for companies to identify and manage
potential hazards before they become loss events. Risk management is widely
used by banks, financial institutions and insurance companies, however most
businesses including manufacturers can benefit from this discipline. Risk
management is a systematic approach to identifying, evaluating, managing and
reviewing risks and uncertainties that could negatively impact the operations
of your business. A significant advantage of risk management is that it forces
companies to closely examine the internal and external environment and create a
plan for risks that could impair business operations or obstruct growth.
Yaneek Page is an entrepreneur and trainer in
entrepreneurship & workforce innovation. Email: yaneek.page@gmail.com, Twitter: @yaneekpage , Website: www.theinnovatorsbootcamp.com
