A product recall can do enormous damage to your business. The impact of a recall is not limited to sales and profits, but also extends further to your reputation. Social media amplifies the effect on your business even faster as consumers share negative experiences or opinions about your product online.
A report from Harvard Business Review offers that a product recall is manageable, with companies even identifying “unexpected benefits.” You could come up with a plan to reduce the impact of a recall, or you can act now and prevent it from happening.
Take Control of Quality
Defects, from cars to communication devices to medicine, could happen during production or manufacturing. In the case of cars, electronic devices and other similar products, the flaw could also come from design or finish. When should you take control of quality? Start at the earliest stage of development, and Qualmark.com adds, do not stop until you reach final production.
A diligent inspection of your product design, followed by a battery of tests to determine its integrity can help your company identify weaknesses. Identifying bugs, deficiencies or outright mistakes with your product early on could keep your company out of the dreaded product recall list.
Evaluate Foreign Manufacturers
Whether your company is getting raw materials or outsourcing production to foreign businesses, it is important to do an audit. You might think you are saving money by using a foreign supplier or manufacturer, but you might end up spending more when a faulty material or poor construction leads to a massive recall.
IndustryWeek lists ways to evaluate a foreign manufacturer. You can buy and test products manufactured by foreign companies and check their litigation and claims history.
If all else fails, you should have a product recall plan to fall back on. Make sure you have a clear procedure of finding and removing defective products in the market.
