Product recall is a terrifying phrase for both manufacturers and retailers. If not handled properly, it has the ability to destroy brands and bankrupt companies. With the ability to have such a detrimental impact, you would think that many companies have an effective product recall plan in place. But in reality, many companies, even large corporations, are not prepared to handle a large product recall incident.
With that being said, what can you do to protect your business in the event a product recall happens?
Senior Management Preparedness
Preparing for product recall is a top down approach. Senior management should foster an organization-wide knowledge of recall readiness. Employees must understand the linkage between customer satisfaction and safety, and that well-run recalls can produce corporate success.
One senior executive should be given the responsibility of managing product recalls. This person must develop policies and procedures for managing product recall and appoint a product recall response team in the event product recall actually happens.
Product Recall Response Team
The response team should be lead by a recall champion and composed of members of the organization that top management feels is essential to help deal with product recall. Having a response team ready helps eliminate panic and chaos in the event your organization has to put a product recall into effect.
The team’s duties should include
- Establish the seriousness of the situation
- Determine the type of recall warranted and scale of response necessary
- Consider the company’s liability exposure
- Plan the product’s reintroduction into the market
- Audit the recall
Remember that there are many ways to handle a product recall incident. But how your company chooses to handle a recall can make or break your business.
For more information on product recall follow the link here to an article about approaching product recall strategically by Harvard Business Review.