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Advertising Express Magazine:
Handling Product Recalls: An Integrated Approach
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Product recall is calling back a product which is not in conformity with the standards committed to the customers. Product recalls have increased considerably in recent times. Product recalls, if not handled properly, can cause permanent damage to a company's image and its valuation. No manufacturer can wish away product recalls. This article lists some of the major product recalls in the last two decades and the factors leading to such situations. It also attempts to analyze the impact of product recalls on the organizations and finally offers few suggestions as to how product recalls are to be handled by all the stakeholders concerned with minimum permanent damage to the company.

 
 

Product recall is calling back a product which is not in conformity with the standards committed to the customers from the market. While some recalls if not executed immediately could endanger the safety and well-being of the consumers, certain recalls become necessary due to social, cultural and environmental issues. All recalls need not end up with the product being destroyed permanently. In most of the cases, barring food products and pharmaceuticals, the products recalled are reworked upon and re-offered to customers. While sometimes only a small part of the output is recalled, in other instances the entire batch and in extreme cases the entire output of a product line may have to be recalled.

A manufacturer wishing away product recalls is perhaps being over optimistic. Goods or services (broadly categorized as products) that are produced, whether by human beings or by machines have some heterogeneity, however small the percentage (or PPM) of non-conformance may be, due to inherent process limitations. While the manufacturers aim to minimize the defects in the products marketed by them, beyond a point (say 100 PPM) it becomes exceedingly difficult and cost-ineffective to reduce the defects and therefore zero defects is more often a notion than being an absolute reality.

This article lists few major product recalls in the last two decades and the factors that led to such abnormal situations. It also attempts to analyze the impact of product recalls on the working of the organizations and finally offers few suggestions as to how product recalls are to be handled by all the stakeholders concerned with minimum permanent damage to the society at large.

 
 

Advertising Express Magazine, Handling Product Recalls, Food Products, Law Enforcing Agencies, Brand Equity, Product Recalls, Corporate Sectors, Regulatory Framework, Consumer Forums, Statistical Techniques, Sophisticated Instruments, Periodic Training Programs, Product Identification System, Communication Channels.