A product recall plan prepares companies for when there is a major problem with a product they are selling. No company wants to deal with a product recall, but it can happen. If this happens with your company, are you prepared? It’s time to learn more about product recall plans, so you can determine whether you are ready and what you can do to get ready.
How to be Prepared for a Product Recall
What is a Product Recall?
A product recall is a request to return or exchange a product that has defects. The reason for the recall can vary from industry to industry and product to product. Recalls might happen in the car manufacturing industry, food, pharmaceuticals, consumer electronics, furniture, etc. It can happen to any type of business.
In some cases, an item might need to be recalled because of manufacturing defects. The defects could cause the product not to work or they could even pose a danger to those who use it. It might not even be the entire product that is defective. It might only be one part that’s used in the product. For example, there might be bad circuits in a consumer electronic. There might be a defective airbag system in certain models of vehicles.
Often, your company might need to replace or repair the products. You might need to give the customers a refund if the item can’t be repaired or replaced. It can have a major effect on your business, and it can be worse if you are not handling the recall properly.
Why Having a Product Recall Plan is Important
What if your company faces a product recall? If you haven’t prepared, this can cause a lot of confusion in the company. Therefore, the best thing you can do is have a plan in place to handle the recall. Your warehouse management system will play an integral role in this, as discussed below.
Although you might hope that you never have to go through a recall, it is always better to be prepared. Therefore, you should consider having mock product recalls about once or twice a year. This way, you can run a scenario that works just like it would if it were really happening. It will ensure that your staff and your systems are properly prepared. It will also allow you to provide more training to your staff during this time. If there is an actual recall in the future, they will know how to respond without panicking and wondering what to do.
In addition to preparing the warehouse for the product recall, you need to be sure that other parts of the company are prepared. This means that you should have a way to quickly remove products from sale and that you have a way to communicate with customers and the public about the recall.
You will find that having some preparation will go a long way in making an actual recall easier to handle. This is not something that you want to push off doing until later.
How WMS Helps You Be Ready for a Recall
A warehouse management system helps to keep everything properly organized. It also allows you to have a means of flagging items quickly and easily. This can assign products to a hold location where they will be separated from other items so they are not picked, packed, and distributed. The WMS can then be updated as the products enter the hold location. The staff in the warehouse can be notified of the location, so proper signage can be added.
The WMS can help to streamline the act of separating and holding the products during the recall. Trying to handle a recall without a WMS will be difficult and it could end up causing more problems for you.
Product Recall Planning for Macola Software and SAP Business One Users
Product recalls are a problem that many companies will end up facing at some point. As you can see, it’s much better to be prepared for the possibility than to scramble at the last minute. Get a good WMS and integrate a training plan in case it happens to you. Contact us to get started.