Product recalls can be detrimental to any company; the event can be costly and often causes a loss of company reputation, customer trust and loyalty, and sometimes a loss of customer lives. With the number of product recalls on the rise, the issue has become of utmost importance, and although government agencies are set in place to protect the customers, there is no such agency to act in the best interest of the company experiencing the recall (Sowinski, 2012). Therefore, understanding best practices for the prevention of, reaction to, and recovery from product recalls can be extremely beneficial to a business. Through extensive research, case studies, surveys, and company interviews, this paper defines best practices to protect businesses throughout product recalls. The paper first outlines the phases a company should progress through during a recall in a Product Recall Model. This paper also outlines recall best practices in a user-friendly Product Recall Strategy Development Checklist, complete with a scoring guide which enables company self-audits. The scoring guide categorizes the user into one of five stages in a corresponding Product Recall Performance Model. The model indicates to what degree the company is protecting itself against recalls and how prepared it would be if a recall were to occur. Recommendations are be given as to how to progress upward through the stages to achieve best practices, and therefore the highest protection from the consequences of a product recall.
Recommended CitationCarow, Emily, "Understanding and Mitigating the Negative Impacts of Product Recalls in the Global Supply Chain" (2013). Honors Projects in Management. Paper 15.