A STRATEGIC APPROACH TO MANAGING PRODUCT RECALLS

Product recalls can destroy brands and even companies. But according t o the authors, if a company handles recalls strategically, it can less on their negative impact and maybe even reap some benefits. The author s maintain that a strategic approach to recalls should address the imp lications of a recall for all relevant business functions and should d eal with all stages of a recall, from readiness before the fact to pro duct reintroduction after a recall has ended. The authors offer step-b y-step guidelines on handling recalls effectively. Among their recomme ndations: Create a recall response team to evaluate potential recall s ituations, to decide on an appropriate response, to oversee the respon se, and to bring the recall to a close. Design products and conduct pr oduct testing with recalls in mind. Thorough testing can uncover poten tial problems before a product is marketed, and designing products wit h features such as built-in traceability makes handling a recall easie r. Establish and maintain channels of communication. The communication s function keeps all concerned parties informed during a recall and ca n take advantage of positive responses to a well-handled recall by pub licizing them. Stage mock recalls to test how well logistics and infor mation systems actually perform. Logistics and information systems pro vide the physical backbone for a smooth recall process. With forethoug ht and planning, the authors assert, unavoidable recalls can have long -term favorable outcomes.