Sleeplessness is a common malady of business leaders whose companies have had to undergo a product recall. When a recall hits home, how well a company prepares for and manages the recall requirements can mean the difference between preserving customer loyalty and severely damaging the brand reputation, or even worse…sink a business entirely. Anxiety levels spike throughout the company as leaders brace for bad publicity, lower earnings, lost market share, legal liability, or a host of other unwanted outcomes.
Continue ReadingWhile recalls vary widely in their scope and impact, the truth is that there really are no small recalls. When it comes to brand reputation and consumer perception, the scale of a recall often doesn’t matter. One negative media report or one simple mistake can turn a small, seemingly manageable event into a much larger problem. To truly protect their brands, companies need to be prepared for a recall of any size.
Continue ReadingPerhaps the auto industry’s biggest challenge took on new urgency in mid-December when the National Highway Traffic Safety Administration (NHTSA) issued an amended consent order aimed at raising airbag-related recall repair rates. The changes provide a boost to this effort by defining, for the first time, what constitutes a VIN that is no longer in service and, therefore, no longer in need of repair.
Continue ReadingIn an increasingly global marketplace, more and more recalls are global as well. Companies that encounter a safety issue may find a number of global complexities at play. Notification, transportation, disposal, and reporting requirements can vary drastically across borders. In many cases, a recall may not even be mandatory in certain markets. Recently, two companies found themselves facing this situation. Their approaches were very different – and so were the consequences.
Continue ReadingEvery aspect of a recall is more complex when it must be executed on a global scale, but two stages stand out as especially challenging: remedy and resolution. Whether it’s a medical device that must be repaired, a consumer product that requires a refund, or a medication that needs to be returned and replaced, the sheer scope of a global recall often makes the task more difficult.
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