In certain industries, recall rates are high enough to be factored in as part of the business process. For example, the industry average for automotive recalls currently stands at 1,115 per 1000 cars sold, as a single vehicle can be recalled multiple times for different reasons. In the food industry, recalls have nearly doubled since 2002 and half of these food recalls have cost the affected companies over USD $10 million. And as the medical tech industry grows, the rate of medical device recalls in the U.S. has increased by 97% over the last 10 years.
Recalls can be caused by product issues or health and safety concerns, and they can be a costly affair for any affected business. After all, on top of the costs of replacing the product and rectifying the issue at hand, a recall can affect other areas of your business as well.
With over 2500 product recalls annually in the USA alone, recalls should be considered a potential threat to any business, particularly in areas like brand perception and customer confidence.
Planned action is always preferable to reaction, especially with something as potentially harmful to a business and brand as a product recall. With batch tracking functionality like the one offered by TradeGecko's order management system, you can overcome the headaches of a recall by taking proactive steps. By taking the right measures in the event of a recall, you can turn it into an opportunity to enhance the public’s perception of both your brand and your business.