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Product recalls affect thousands of products globally each year, impacting millions of customers and causing severe consequences for companies. For instance, Takata’s airbag recall cost $25 billion and led to bankruptcy. Similarly, a viral video showing a Kryptonite bike lock easily broken damaged customer trust significantly. Effective recall management is crucial. It involves addressing supply chain, production, legal, and customer relationship aspects, with marketing playing a key role. A well-managed recall limits company damage and protects customers, while also considering investors, regulatory agencies, policymakers, and the public. This book offers guidance on developing a recall strategy, communicating safety risks, and restoring trust post-crisis. It provides detailed recommendations for recall management across different phases, with insights into consumer goods, food, and automotive sectors, and shows the broader impact of product defects. This book is a practical toolkit for managers, backed by current research and real-world case studies, ensuring effective navigation through product recalls.
Legislation places obligations on all those in the supply chain to ensure that only safe products are placed on the market. However, there will be occasions where mistakes occur or there are unforeseen circumstances that place the consumer at risk. Every year a significant number of products are withdrawn from the market , and in cases where the safety risk to the consumer is judged to be high, these result in product recalls. This publication provides practical guidance and advice on the key requirements for the product recall process, particularly to small and medium-sized companies who may lack experience in the handling of product safety issues. It is designed to assist the development of policies and plans that can be linked to detailed operational procedures, with the aim of providing improved consumer protection whilst minimising the commercial impact.
While there is substantial research surrounding manufacturing and design-related product hazards, little has been written about supply chain product hazards and how they impact supply chain quality management. Filling this need, Global Supply Chain Quality Management: Product Recalls and Their Impact draws together key insights and research findings from a global research project on product safety and recalls. The book presents detailed case studies of six extended global supply chains within three industries: toys, food, and pharmaceuticals. These case studies cover U.S. companies with supply chains that extend into China and provide the perspectives of both U.S. and Chinese executives. It includes coverage of several highly publicized product recalls, including Ford Pinto, Extra Strength Tylenol, melamine-tainted milk, Mattel, and Toyota. Presenting detailed examples of both poor and best practices, the text supplies firsthand accounts from key players in well-known product recalls. It outlines an event study methodology that can help readers determine the true financial impact of a product recall announcement. It also describes how to conduct controlled experiments to determine the effect of various recall strategies on consumers. The book describes how alternative product recall strategies can influence consumers' perception of your organization's corporate social legitimacy as well as their future purchasing behaviors. Although the text focuses on product quality within the supply chain, it also sheds light on other sources of product hazards—sharing a wide-ranging perspectives and current methodologies.
Offers information on product recall based on the author's own experiences in helping companies recall products, both by prevention due to planning ahead and in actual recalls occasioned by accidental defects or deliberate contamination of products. Topics covered include marketing and the law.