🇦🇺Australia

Cost of Poor Quality from Recall Failures

1 verified sources

Definition

Lack of unique lot codes forces recall of large portions or entire wine batches during enforced recalls, causing direct financial losses from product disposal and logistics.

Key Findings

  • Financial Impact: AUD 50,000+ per full-batch recall (estimated based on industry norms for alcoholic beverage recalls involving thousands of bottles)
  • Frequency: 12 alcoholic beverage recalls since 2007 (2% of 600+ total enforced recalls)
  • Root Cause: No unique lot identifiers per packaging run, complicating precise identification of faulty products like broken glass in bottles

Why This Matters

Wholesale Alcoholic Beverages players in Australia 🇦🇺 face AUD 50,000+ costs per unnecessary full-batch recall. Automation of Vintage and Lot Traceability Tracking eliminates this risk.

Affected Stakeholders

Wholesale Managers, Compliance Officers, Production Supervisors

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Financial Impact

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Current Workarounds

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Methodology & Sources

Data collected via OSINT from regulatory filings, industry audits, and verified case studies.

Evidence Sources:

Related Business Risks

Compliance Penalties for Traceability Breaches

AUD 10,000-50,000 fines per compliance breach (typical range for Food Standards Code violations in food/alcohol sector)

Capacity Loss from Manual Lot Tracking

20-40 hours/month manual labour (valued at AUD 1,000-2,000/month at AUD 50/hour for skilled staff)

Fines for Delivery to Intoxicated Persons

AUD 24,000+ fine per offence

Failed Delivery Reporting Overhead

10-20 hours/month manual recording per high-volume wholesaler

Fines for Supplying Alcohol to Minors

AUD 24,000+ fine per offence

Lizenzverstöße und Strafzahlungen im Alkoholgewerbe

Quantified (logic-based): AUD 10,000–50,000 per enforcement event in fines and legal costs for liquor/excise breaches, plus 1–3 days of lost trading per suspension (for a wholesale warehouse turning over ~AUD 100,000/day, this equals AUD 100,000–300,000 in lost revenue).

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