How Reverse Logistics Plays a Key Role in a Smooth Product Recall
Consumer returns aren’t always the result of buyer’s remorse or a customer’s decision. Sometimes a consumer is forced to return an item due to issues out of their control. The primary reason is typically a product recall. Product recalls result from defects in a particular product or in specific parts of that merchandise. Companies can protect their name and profit margins while making the process as smooth as possible when the reverse logistics department follows proper recall procedures.
Track Down Product Locations Using Data Analysis Tools
Product recalls can devastate the bottom line of any company. Managers in the reverse logistics department are responsible for cleaning up this fallout because they store the product. In particular, it’s imperative to identify where the recalled product was shipped so it can get returned efficiently.
Having access to data that tells how many recalled products were shipped and where is critical. With that knowledge, the company can get as many of those products back as possible from shelves and consumers.
Determine the Recipient of the Recalled Merchandise
There are three possible points of contact where recalled merchandise can return to – the retailer, manufacturer, or distributor. To decide which will be in charge, companies need to determine how big or small they are, how much of the product is in circulation, and their proximity to the customers who purchased it.
Regardless of which receives it, the reverse logistics department must ship the product – either from the store or directly from customers – and determine its method of destruction, disposal, or remanufacture. The most important determiner is who can complete the recall the fastest. Quicker returns mean reduced safety issues overall.
Complete the Recall as Quickly as Possible
A product recall is a very technical and delicate process that must happen fast. When a defect is discovered, quick action will avoid consumer injury or, in worst-case scenarios, potentially fatal accidents.
Recall letters can go out to consumers, and retailers should quickly remove any unsold, defective merchandise from their shelves. Additionally, employing the local media or other resources can alert the public about the recall and tell people exactly what to do. Sometimes, the recall gets discovered soon after manufacture, and a replacement product is made available for exchange. Other times there are no other options than to return the merchandise.
Depending on the size and scope of the recall, your company may encounter a brief decline in reputation. However, it’s always better to inform the public as soon as possible to avoid any potential injury or accident. As long as your company completes a necessary recall in a quick and orderly fashion, customers and your company’s bottom line will be protected.
Image credit: Mikko Saari