A product recall involves a company retrieving or requesting a return or exchange of a product after defects have been discovered in it.
They usually occur as a result of safety concerns related to a manufacturing or design defect in a product. Recalls can damage a company’s reputation and lead to a decline in sales.
Recalls may be reactive which is when an organization makes a spontaneous decision to reverse damages to the image of a brand.
For instance, a business may remove the affected product from its supply chain. The recall may also be reactive, in which an organization is obliged to promote the recall.
Recall Management Strategies
Recall management strategies depend on many factors, which include the type of product being recalled and the impending danger posed by its defect. For instance, smartphones will be recalled differently from medicines.
A successful product recall should involve the following strategies-
To be proactive during product recalls, it is important to have information about the location of all the products being recalled, and a suitable product retrieval process.
The ERP system of a business must rapidly report the location of products., it is wise to assign a recall management team and align with a third -party retrieval service provider. There also has to be an announcement platform ready for use.
During product recalls, customers want answers that satisfy their product safety concerns.
It would be wise to have a product recall manager who ensures people are trained to represent the company, and who coordinates the work of the product retrieval and PR teams to avoid mixed messages.
This manager should also know all the technical details of the recalled product.
Cooperation with Government Agencies
A business should have an ERP system that manages the information about the recall end-to-end in its product supply chain. This would help optimize cooperation with government agencies.
If a business has all product-related data, from sourcing and raw materials to delivery and in-field tracking, it is easier for regulators to approve product recall actions as soon as possible.
Product Recall Examples
Toyota’s Floor Mat Recall
In 2009, Toyota recalled 3.8 million vehicles in its biggest US recall , in which dealers had to remove mats linked to a number of serious incidents.
This was due to the potential for gas pedals to get stuck in floor mats and cause unintended acceleration as well as other concerns.Toyota analysts concluded that there was a design flaw with the floor mats. The cost of the recall was approximately $2 billion.
Coca Cola’s Recall
In December, 2021, Coca Cola announced a recall of three different Minute Maid products due to potential contamination of metal bolts and washers.
Additionally , Sprite 12-ounce cans and Coca Cola 12-ounce cans , with a particular date code, were voluntarily recalled.
The company issued a formal statement explaining why they took such action. According to the statement, such action was necessary to provide high-quality and safe products for consumers .