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Total Cost Of Recalls

Terri Reeves Wednesday, November 19, 2014 Blog
Broadbent's Blog


Written by John Broadbent -National Solution Lead –Manufacturing

Having a look at the ACCC’s Product Safety Recalls Australia register, it’s an interesting read

It lists the registered recalls in the last 30 days and at the time of writing totalled 50 recalls, from car makers, to retail outlets, to toys and food. Items that have escaped to consumers.

How many ‘internal’ recalls that never made it into consumerland is a mystery, however you can bet it is more than reported.

If your company has ever been involved in a recall you’ll know how difficult they can be to coordinate.

Did you know that there are even PR agencies to help ‘manage’ the public perception about your recall, so that damage to your brand and reputation are ‘minimised’?

The fact that many businesses may have a recall plan and even do practice recalls to hone and test it, does not mean that the process of identifying suspect or faulty product is timely or easy.

On the contrary.

Very few businesses can, at the touch of a button, tell you where a ‘batch’ was made, what were the batches that influenced it and where it was despatched. I’ve even been to sites where copious amounts of hand-written paper forms are stored in archive boxes, then placed in numbered shipping containers somewhere on the premises, just in case.

Any business that tries to recall from this sort of biblical ‘search and ye shall find’ filing system, knows it can take a team weeks to understand what’s happened and where the faulty product might have gone. In the meantime, the clock is ticking, product is being delivered to end-users, and with each day that passes, the risk to the business increases dramatically.

If you’ve not heard of Manufacturing Intelligence as a manufacturing philosophy, then you’re unaware that systems now exist that tell you all you need to know … at the touch of a button (well, maybe a couple J), certainly in minutes, not weeks.

Prevention requires investment, however stopping a single public recall can often more than pay for it.

What is your recall process and would you be able to quickly identify suspect product, quarantine it, test it and decide what to do with it, in near real-time?

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