RedPrairie Recall Legislation Survey Finds Industry Lacks Consensus on Best Approach

Business Wire, May 21, 2008

Most believe industry standards would be more effective than new laws

WAUKESHA, Wis. -- RedPrairie Corporation, a leading consumer driven optimization company, today announced the results of its 2008 survey of industry leaders on the impact of legislation regarding recalls that was recently proposed by the U.S. Congress. The RedPrairie survey of industry-leading retailers, grocers, consumer packaged goods (CPG) companies, food and beverage (F&B) manufacturers, and third-party logistics firms focused on whether industry-wide standards or new legislation would have more of an impact in preventing and managing recalls.

Tom Kozenski, the Vice President of Product Strategy at RedPrairie, said the results indicated a lack of consensus as to whether industry-wide standards or legislation would prove more effective. For example, while 79% of respondents indicated that recall legislation is needed, 75% believe that industry standards would be more effective in managing recalls than legislation. In addition, the survey found that:

* Surprisingly, 56% of respondents were not aware of the proposed legislation. However, half of the respondents aware of the legislation are preparing for it.

* 79% indicated recall legislation was needed, but only 12% believe recall legislation would significantly reduce the incidence of product recalls.

* 75% of respondents believe industry-wide standards would be more effective in managing recalls than legislation.

* Brand protection (46%) was listed as the top reason companies want to improve recall processes and technology. The next two major factors were consumer demands (36%) and competitive differentiation (13%).

"It is surprising to find that 56% of the respondents weren't aware of the legislation, given the recent increase in recalls," Kozenski said. "However, we've found that companies are very much aware of the problem and seeking solutions. We've seen an uptick in the number of companies - especially in the retail, food & beverage, and CPG industries - who have asked us to help them improve their quality assurance and recall capabilities. The challenge will be discovering the right combination of industry-wide standards, legislation and individual company efforts that will effectively manage quality issues without also making a negative impact in supply chain efficiency."

A complete summary of the "2008 RedPrairie Survey on Recall Legislation" can be found at www.redprairie.com/recall.> About RedPrairie

RedPrairie is a world leading consumer driven optimization company. Built on an advanced Service Oriented Architecture (SOA) developed over the past 15 years, the RedPrairie integrated suite of solutions offers on-demand capabilities to over 32,000 sites worldwide for many of the world's largest companies.

RedPrairie's E2e[TM] solutions synchronize people and products throughout the customer buying cycle to ensure goods reach the right place at the right time. At the point of sale, this means consumers have access to desired products and that the store is staffed with the right people to help them make their purchases. In the production cycle, it means suppliers and manufacturers time and synchronize shipments and production based on demand signals from the retailer. And in the back room of the store, it means having the least amount of inventory, solving the "last yard" problem of the retail supply chain.

With 20 global service sites and standard service methods that have been validated over the last 30 years, RedPrairie provides unparalleled service and support. For additional information, call 1.877.733.7724, or access www.RedPrairie.com.

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