There are three things that are at stake when the process of recalling a product is mishandled and those are:
- Company’s reputation
- Market share
- Bottom line
This, however, can always be avoided if there are proper guidelines and systems in place that are meant to effectively manage recalls. Acting quickly allows for lesser risk and prevents brand damage.
The main aim is to think of a product recall as a cycle of a series of events related to each other, needing to have a solid plan in place. These events mentioned can be broken down into five steps for more effective planning and execution. Let’s get into what this five-step methodology entails.
The need for a plan
It is very important that there’s a recall plan before a recall event even occurs. Having an effective plan in place will make certain that the response is as efficient as possible.
Having a recall plan forces the company to pay attention to every step in the recall process and these include notification, retrieval, processing and reporting. It is the company’s responsibility to ensure that the recall plan clearly defines and states the roles of each member of the recall management team.
Notification and response
Not managing notification and response properly has the potential to put health and safety at risk; build up consumer anxiety; and increase legal liability. Channels of communication should be open at all times. This is in the same way messaging must be clear and consistent and be able to demonstrate concern too.
The right planning in place can mean a recall may be up and running in 24 hours. In this time, all communications requirements such as contact center operations, safety alerts, traceable direct deliveries, confidential data registries and web-based tools that assist customers in obtaining the information needed to stay safe have to be established.
Recalling and removing a faulty or affected product from the store shelves, the supply chain and even directly from the customers’ homes is something that is a detailed task. Unfortunately with this, companies do not have an effective method for completing this process. It does even happen at times that entire product lines are pulled out purely because of caution, which then causes an unnecessary increase in manufacturer’s recall costs.
Checks that happen in person at smaller volume stores and distribution centers can help affirm effectiveness and ensure that recalled products are off the shelves.
Processing and disposal
Strict regulatory laws oversee the difficult process of removing, processing, storing and destroying recalled products. This undertaking needs an infrastructure that is planned beforehand with top-notch security, complete return integrity and the surge capacity to handle the influx of product.
Data visibility in the recall life-cycle that includes labeling and tracking of products is also important for this step.
Companies must get rid of recalled products in a way that has the environment’s best interests at heart. Sustainable recall best practices meant to have minimal impact on the environment can help reduce costs and generate goodwill.
It is very crucial to identify other ways of recycling end-of-life products that would have otherwise been disposed of.
Companies that follow and address these five steps when dealing with recalling make sure that their brand is protected and ultimately strengthened instead of being damaged and led by the event.
Now that you know how save your company’s image during reverse logistics, find out The Many Benefits of Reverse Logistics Management – Part 1!