Having to recall defective, dangerous or contaminated products is never good for your business, in fact, in can be downright catastrophic. But how prepared are you? Have you ever
even thought about it? Not only do you have to recall the product, you will have to pay for a replacement and even pay for any damage that it might have caused. However, the monetary
loss that your company might experience is trivial compared to the damage to your brand name.
Why Would You Recall?
There are several different reasons why you might have to recall a product. They can range from accidental contamination, product defects, improper transportation and much more.
There are two ways in which a recall is prompted- voluntarily or mandated by the government. A voluntary one is initiated by the manufacturer, distributor or importer of the
product.This usually indicated a high level of risk awareness and a developed risk culture.
A recall prompted by the government is usually because the use of a defective product will result in damage, injury or loss. The government may also confiscate and destroy the
products.
The better prepared your company is for a recall, the quicker you can respond, minimising the cost. A recall that is well planned for can double the reach of the recall.
A good plan can also decrease the time between the discovery of a defective product and the launch of the recall, which will save you money.
How Do You Plan for a Recall?
Pre-incident planning, execution and documentation should all be well organised and well thought out. Planning such as this, accompanied by quality management, can make a recall
go even smoother. Use batch coding to trace your product can limit the number of products affected by the recall, making the process more efficient and reducing the loss.
There are various types of recalls, and the one you choose is generally dependent on the size of your company and the defective product. A public recall is announced through the media and is generally used when the safety of a product cannot be guaranteed. A silent recall, on the other hand, proceeds with instructions to the wholesalers and distributors without directly informing the media or end user. If delays don’t affect the safety of the public, then the affected product can be handled using audits and inspections.
Protection through Insurance
Some of the costs associated with product recalls can be minimised through the right insurance coverage. You need specific product recall insurance that will reimburse you the
cost of recalling and replacing a defective product with a safe one.
