While no company wants to pay the unexpected costs of a product recall, planning for the worst and creating an effective recall plan can help protect your business. Here are seven tips for creating an effective recall plan:
- Establish a formal product safety committee.
While this depends on the size of your organization, this group can help with creating quality control policies, auditing product safety performance, and making recommendations to management.
- Create a company recall policy.
Include detailed procedures and designate the responsibility of authorizing the recall.
- Establish notification procedures.
Decide exactly how and when you will notify customers, brokers, insurers, distributors, dealers, company personnel, and appropriate media.
- Establish production protocols.
Establish procedures for stopping production, shipment, and sales of the recall product, as well as plans to complete a risk assessment of proposed redesigned products.
- Notify retail businesses.
If your company operates or distributes through other retail stores, establish a system to prevent uninformed sales staff or merchandisers from putting recalled items back in circulation.
- Practice vigilant labeling.
Routinely label all components, parts, and completed products to identify the company name, model, serial number, date of manufacture, etc.
- Establish a recordkeeping system.
Include as much information as possible, including:
- Quantity, model, and serial number of products manufactured on specific dates
- Materials used and identities of suppliers and contractors
- Batches, processes, and product changes
- Quantity and location of each product with distributors
- Incident reports, accident investigations, and warranty claims
- Additional records required by regulating authorities
Finally, to ensure it’s ready to use, put your recall program through a simulation. No company looks forward to a recall of its products, but by being prepared, you’ll be better able to protect your customers and your company’s reputation.
Concerned about how a potential recall would affect your bottom line? Read more about general liability insurance for your business.
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