Providing Replacement Packaging to Customer- Food Fraud Issue

My company produces bag in box beverage concentrates for the food service industry.  Typically we sell to brokers who sell the products to restaurants, casinos, etc.  Our broker customers regularly come to us asking for replacement box packaging with labels because boxes were damaged while in their possession.  They want to re-box the undamaged bags so they can sell the case at full price.  We typically oblige.  

However, I have concerns about this practice regarding food fraud and traceability.  We get no confirmation or verification that the customer is truly using the packaging we provide for the appropriate product.

Can anyone offer any advice on this?  I know we need to be doing something to better control this situation, but I can't come up with a good solution.  Thanks in advance!

Why is it your responsibility to assist them due to their damage?

Hi muncys,

You are quite right to be concerned.

As a minimum I would expect the damaged product to be returned and for you to control the 'reboxing' process. This is still not ideal as how do you know the product has been stored correctly by the broker? If this is not possible then insisting on photos may be a way to go, whilst retaining the photos and records of the packaging/label supplied.

The other thing I would be looking at is ways to reduce the damage and if the packaging is robust enough.

Kind regards,

Tony

We have a similar issue, during shipping some boxes get damaged but the bagged product inside is OK, so the customer ask for replacement boxes. I gave my customers 2 choices either reject it at the dock and send it back or assume responsibility for that item and repack at their location. If they choose to repack, I ask for an written request with details of what, why, qty, lot # and who is repacking the boxes with pictures of the damaged box, as well as an disposition report that the box & label was destroyed. 

If the damage was caused during shipping I also report that back to my Carrier as feedback. The number of damaged cases have steadily decrease since I started reporting to the Carrier.

SQFConsultant, 

I wholeheartedly agree with you.  I have proposed to my management team that we abandon this practice altogether.  However, we are a small fish in the big sea of our industry and anytime our large customers tell us to jump, we ask how high.  It was a business decision to continue with the practice and I want to mitigate the risk however I can.

SQFConsultant, 

 

I wholeheartedly agree with you.  I have proposed to my management team that we abandon this practice altogether.  However, we are a small fish in the big sea of our industry and anytime our large customers tell us to jump, we ask how high.  It was a business decision to continue with the practice and I want to mitigate the risk however I can.

I would go with what Itreatpets said, you'll need full tracking in the case of an event, however that appears to be best solution.