Analyst slams industry for not carrying out proper audits on its contractors

The failure of companies sourcing products from contract manufacturers and ingredients suppliers to carry out proper audits is resulting in large numbers of product recalls, claimed market analyst Retail Systems Research (RSR).

The company surveyed retailers across the globe for its product lifecycle management report and found their top concern was inconsistent product quality and non-compliance.

"The number of recalls started out as embarrassing, but now it's a life and death issue," said Paula Rosenblum, the report's author and RSR managing partner.

"It seems issues are consistent across all industries and geographical areas. I thought the UK might be ahead, but that doesn't seem to be the case."

She claimed that brand owners and retailers were to blame for recalls when they outsourced their production to contract manufacturers, but failed to audit them with their own staff. "It needs to be sharpened up," she claimed.

She also said ingredients suppliers should be audited more efficiently. "I'd love to say you can audit with a spreadsheet alone, but it's just not possible. How do manufacturers know all standards have been met with each ingredient?"

She cited a recent petfood case in the US, where many brands were tainted with the same protein. "The public had no idea about the problem until pets started dying."

She said processors should regularly audit suppliers and, where this was not possible, a trusted firm should audit on their behalf. "Traceability is an option, but the problem is by the time you get to that stage, the horse is out of the barn.

"Do we congratulate ourselves on successful product recalls, or do we try to prevent them?"