Accounting for product recalls
Products recalls can be expensive and damaging to brand reputation. Rich McEachran explains why it's important to work with your supply chain to weather the storm.
Plush toys, baby sleeping bags, raw pet food and Thai green chicken curry. These are just a few of the products that were recalled during August 2019, according to the Chartered Trading Standards Institute.
Companies that manufacture products can never completely rule out the possibility of shipping a defective product. But the discovery of a foreign body or a fault can reduce consumer confidence, leading to a decline in customer loyalty and, potentially, damage to the brand. If not handled appropriately, a product recall could also attract the wrong kind of attention in the marketplace.
History shows that even the biggest companies fail to get it right. A case in point is Mattel, number one toymaker in the US. In 2007, it had to recall around 20 million products because of Product recalls can be expensive and damaging to brand reputation.
Rich McEachran explains why it’s important to work with your supply chain to weather the storm loose batteries posing a swallowing hazard to children, and unusually high levels of lead.
This is an extract from Business and Management Magazine, Issue 278, October 2019.
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