Product liability and recalls create a challenge of crisis management, if not handled properly, the effects can be catastrophic. Public safety is at stake. Corporate reputation and corporate responsibility are at stake. Product liability and recalls can lead directly to massive litigation, from both consumers and the government.
Missteps and poor communication can have a catastrophic impact on the brand, stock price, and reputation. Choosing the ideal 3PSPs for best practices in handling product liability and recalls, can seem to be a near impossible task given the short time allowed by government regulations.
Without a product recall plan in place, it will be impossible for a company to meet and exceed government regulations, to protect their brands and reduce exposure their exposure to massive litigation.
As a service to our members and the public, the Reverse Logistics Association is providing this information to help companies prepare to respond to a potential product recall.
Public relations for a product recall presents the most challenging aspect of Reverse Logistics Profession. Public, media, and regulatory interest will be very intense, time is of the essence, and there are no easy answers. At times, the very survival of an institution is at stake.
Consumer product recalls are a particularly catastrophic public relations problem, because they occur relatively frequently, have potentially disastrous consequences, and require considerable attention from many departments with in a company. Even if a corporate recall is managed by the CEO, another manager, or even a committee, the procedure is basically a combined public relations/marketing operation, designed to attain traditional public relations objectives.
Product recalls occur with significant frequency, although there is some debate over the precise duration and magnitude of harmful effects. Reverse Logistics Industry Experts proclaims that "product recall is a situation that nearly every manufacturer will probably face at some time or another, no matter how meticulous its quality control procedures."
Keeping in mind the inevitability of recalls, it is time to consider what plans your organization has in place?
Who is your 3PSP to help you handle the inevitable recall?
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