How To Handle Product Recalls
Product recalls occur when a large quantity of a product fails to function as advertised or isn't safe for use. The manufacturer or a government agency then take the decision to recall, and this process can be liked to supply chain in reverse.
Irrespective of what industry you serve, the chances that a recall will hit your supply chain are high. Hundreds of products are recalled every month, but only the nasty ones hit the airwaves, like the Samsung Galaxy Note 7 or Takata airbags.
It is essential to be prepared when a product recall hits. Transparency at all levels of the supply chain is critical as participants have to be able to communicate directly with one another to identify where the defective products are at every point in the process. Stakeholders also have to receive up-to-date information instantly, often while on the go.
To prevent a potential recall from turning into a larger crisis, you can:
- Look for Early Warning Signs
There are usually some warning signs at the early stages of most recalls. This might come in the form of customer complaints, larger-than-normal returns, or the manufacturer acknowledging problems with their product. It pays to look out for these early warning signs and plan accordingly.
- Standardize inventory formats
Using a standard electronic format can help create transparency among all parties in your supply chain, leaving you better able to respond to emergencies.
- Adhere to recall regulations
Recalls are regulated in all industries, and the supply chain has to worry about complying with regulators in addition to efficiently removing products from shelves. This can be a momentous task if your business is ill-prepared to handle it.
Investing in modern tracking technology like RFID, barcoding, and scannable labels can be beneficial. They create a data trail that simplifies the process of locating information about orders, shipments, inventories, and status of other operations on the supply chain.
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