Johnson & Johnson embroiled in further recalls amid manufacturing errorsJohnson & Johnson, the consumer products giant, has yet another manufacturing headache on its hands. The company, besieged by product recalls this year, announced that it is recalling its stomach medicine Rolaids after reports surfaced that consumers found wood and metal in the product.

McNeil Consumer Healthcare, a subsidiary of J&J, issued the recall after consumers reported the objects in the over-the-counter medicine. In total, 13 million packages of Rolaids are being recalled over the manufacturing blunder which McNeil contends occurred at a third party, although it so far refused to name the supplier.

As a result of this latest supply chain mishap, Wells Fargo downgraded shares of J&J to market perform as it cited the burgeoning supply chain risks associated with McNeil's manufacturing capacity and practices. Earlier this year, McNeil affirmed that it would improve its manufacturing and quality control practices, but the latest recall is yet another instance of poor supply chain and manufacturing efficiency.

The federal government is also involved in the matter as it is investigating the company for the repeated recalls. According to analysts at Wells Fargo, there is a 25 to 50 percent chance that J&J will close the doors of the Puerto Rico facility that produced the Rolaids. So far this year, J&J estimates it has lost nearly $600 million on recalls resulting from supply chain inefficiencies and manufacturing errors.
Share To:

Strategic Sourceror

Post A Comment:

0 comments so far,add yours