HEAD ON FACING RECALLS
by Mike Rozembajgier, vice president, Stericycle
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here comes a time for many organizations when they must, unfortunately, initiate a product recall. It’s a tough situation for any company, but it doesn’t have to be the crippling roadblock that many perceive to be. Fear of the unknown causes many toy manufacturers to avoid the subject altogether, and in doing so, put themselves in a bad position should a recall happen. Without proper knowledge, a recall can quickly turn from a bump in the road to a company’s full-fledged nightmare. Unfortunately, many organizations learn this lesson the hard way as they try to learn the basics during the recall itself, losing valuable time and money along the way. But by being prepared and understanding the general steps of a recall, an organization will be ready to confront a potential recall situation and position itself for long-term success. Here are some best practices for preparing for and facing a recall:
1 STEP
The first and most crucial step in a recall is preparation. The unpredictable nature of recalls means that this can start years before an actual recall event, or maybe this will be the only step an organization ever takes. Regardless, it’s a step no organization can afford to skip, whether they end up going through a recall or not. A solid preparation plan assesses recall readiness, and lays out a detailed recall plan by answering questions such as: • Who is in charge of the recall? • Which role is assigned to each key employee? • Which regulatory agencies will be involved? • What kind of information do they need and when? Looking at how an organization records and compiles data is also a key part of the preparation process. A system needs to be in place that will enable 24/7 access to web-based reports. This will ensure that the data is always accessible for everyone who might need it. It’s also important to get ahead of the game
DECEMBER/JANUARY 2015
and determine the type of information needed in the event of a recall and how it will be collected. When the phone starts ringing off the hook and truckloads of product start streaming in, things can get messy. If the necessary data isn’t collected along the way, there is often no way to go back and obtain it. In some instances, companies might spend thousands of unnecessary man-hours sifting through product and other communications in order to get pertinent information in a useable format.
2 STEP
Once a recall starts, it’s time to augment the recall plan with the details specific to the event. That leads us to step two, which is to identify who needs to be notified. Depending on the recall, end customers, retailers, distributors, and regulatory agencies could all need notification. It’s important to be able to distinguish the affected parties to ensure there is a comprehensive notification process with minimal disruption to the supply chain. This goes back to the previous point on data capture. Records and contact lists need to be kept up to date and accessible to ensure the recall gets started on the right foot.
3 STEP
Once an organization has determined who needs to be notified, it’s time to begin informing the affected parties of the recall. This leads us to the third step: notification management. There are a variety of ways to contact impacted parties—mail, phone, mass media, social media, and the list goes on. The avenue of communication, or the combination of avenues, that is ideal will vary depending on the level of the recall and supply chain logistics. However, no matter how this process is handled, its complex nature means that the process needs to be organized and documented so that real-time or near real-time updates are readily available. This data can be vital in potential litigation or issues with the media.
THE TOY BOOK • 55