An effective product recall plan involves multiple levels of consideration. These range from PR matters to staff mobilization and stock retrieval. Multi-faceted recall processes pose many pitfalls that might prove problematic for companies if poorly managed. The New Normal could worsen recall woes for various industries (i.e., foodstuff and healthcare) as regulatory bodies like the FDA heightens quality measures by accounting for COVID-19 complications, on top of pre-existing criteria. Learn the pitfalls to look out for in an effective product recall plan.
Hence, a product recall plan should serve as a comprehensive set of guidelines to fulfill the requirements of voluntary and mandatory recalls.
1. Identifying the Problem
The first step of product recall plans involves refining the data or information of a product batch. Data may originate from internal quality checks or consumer complaints. Companies need to access the preliminary scope of the issue and determine if the damage is containable without a product recall. Product recalls are serious decisions, and a false alarm can cause considerable damage to public confidence in a brand.
Hence, product recall plans should feature consistent methods of diagnosing a reported problem, refining the information, and identifying the consignees/consumers affected.
2. PR Matters
Product recalls are time-sensitive procedures where the public and media should be informed quickly and effectively about the recall process. Poorly managed PR can lead to a recall situation spiraling out of control and unwanted publicity.
Companies need to inform each staff member of their roles and responses during a recall. Responses include social media updates, official media statements, and the information contained. Employees must be aware of the information they are allowed to share before the release of a formal report and retain strict confidentiality practices.
An assigned public spokesperson can provide the public and media with the assurance required to minimize panic during the recall. The ideal spokesperson is an individual experienced and formally trained in PR and media communications. Affected companies should conduct market research to establish the most popular communication channels of affected demographics to maximize notification outreach.
A carefully prepared media release statement should contain concise and factual information on the recalled batch of products. These details include product batch numbers, the nature of the recall, and company contact details for consumer support and outreach.
3. Legality Issues
Recalls involve red print that requires careful preparation. Poorly executed legal processes may lead to substantial losses and long-term damage to the company’s reputation and potentially the revoking of operational licenses. Product recall statements and plans should be vetted by a legal professional to account for every point contained within, with the best interest of the company’s future.
Companies should ensure that they meet the latest product recall regulations outlined by the CPSC (Consumer Product Safety Commission), which include response timeline, product disposal procedures, and report compliance.
A distinguished law agency specialized in product liability can help mitigate the damage to the company’s brand and customer relationships, cutting back losses through a preemptive approach.
4. Retrieval and Disposition
Recalled products require prompt retrieval and disposition processes. Companies need to include these response processes in a product recall plan to avoid budget blowouts. The physical recall process involves two parts: retrieval and disposition.
Retrieval requires the affected company to tally and segregate the remaining stock of recalled batches from saleable products before disposition. Company managers should communicate with each party in a supply chain, including online resellers and local and international distributors.
Disposition is a two-prong process that includes product disposal and stocktaking of returned items. Companies should always implement safe disposal procedures to prevent further risks to consumers and the environment. Affected companies need to consider the most cost-effective shipment and disposal method (i.e., incineration, recycling, etc.) according to the product’s materials and ingredients.
Large-scale disposition might consist of additional transportation fees and the hiring of ad-hoc ground staff. Based on the scope of the recall, companies may require a global disposition task force or the support of a foreign partnership.
Optimizing a Product Recall Plan & Recall Readiness
The FDA recently published its final guidance outlining steps companies should take to develop recall policies and procedures that include training, planning, and record-keeping to reduce the time a recalled product remains on the market.
The FDA guidance should be studied closely. In it, the agency describes an array of best practices for creating, testing, and executing a recall plan. Because of the FDA’s heightened expectations, along with the greater risk and complexity involved in today’s recalls, training – including regular mock recall exercises – has become an essential part of the recall preparation process.
It is imperative that your organization plan, train and test for a product recall. This includes developing and executing mock recalls at least twice a year.
How We Can Help You Plan a Mock Recall
MockRecalls is a mock recall planning, training and consulting program to test your recall readiness. We are purely focused on protecting your product investment by working with you to create a new recall plan or analyze your current recall plan and then put it through a mock recall or recall simulation test to insure you are prepared for a possible product recall. We use our on-demand SaaS based recall management platform that eliminates common mistakes manually conducting recalls, by automating the most tedious steps of a product recall. It is a simple to use platform that just focuses on handling product recalls quickly and efficiently. Through our mock recall training using our dedicated recall platform, companies can improve the recall process, increase response rates, and document and communicate with all stakeholders.
Our program can analyze your company’s readiness in many of the typical elements of the recall process including:
- Initiation, investigation, and communication process
- Recall working team and decision team composition and dynamics
- Team roles and responsibilities
- Process flow and lot traceability
- And retrieval capability and effectiveness checks
Our recall simulation program is conducted as an escalating model using real product facts and potential issues, with multiple inputs such as consumer complaints, social media, FDA/USDA/local health department and law enforcement. Conducting a recall simulation will also allow the recall team and all involved personnel to become familiar with their responsibilities throughout the recall procedure. This gives them time to effectively communicate any concerns about the plan while the company isn’t dealing with the pressure of an actual recall.
Looking to test your product recall readiness across your organization? MockRecalls will help create and/or test your recall program. Click here to learn more or call us!