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May 20, 2013draco3PL, Crisis Management, Customer Service, E-Commerce, Logistics, Optimization, Supply Chain Management0

We’ve all been in a store or have seen news stories on when a major product recall is being announced. Imagine you are a company that has to relocate and obtain hundreds to thousands to millions of products, all the while trying not to plummet your profits or ruin your business’s reputation. Sound like a nightmare? It is. Sadly, for many companies this horror comes true, and often enough many companies struggle to find a way to survive and make it out of the business still alive.

Fortunately, there is a way to manage and survive a product recall.

Through crisis management, a strategy can be developed, tested, and implemented when needed, to help handle the logistical web of relocation, obtainment, and fixing of the product during a recall. The best part is, there isn’t an immediate need to call up and hire a full PR or HR staff. Instead, you can look towards a 3PL provider to help you get started. Often enough, they will have the technology, resources and experience to help your company through a crisis.

Like eating healthy and going to the doctor, the best way to prepare for the product recall is to simply prepare. Do your research and find a 3PL provider that can help you develop a strategy that can be implemented in the blink of an eye in case of a major crisis. Test and tweak it until you, the 3PL staff, and your employees feel comfortable if such a recall would to occur. Finally, look into investing in recall insurance. Like home and auto, it’s better to be safe than sorry. Recall insurance can potentially cover the large costs of 3PL, customer notification, shipping and the disposal of the damaged goods.

Having a tested and strong crisis management plan can be an opportunity. It could strengthen communication within your company culture, your 3PL provider and give you ease of mind knowing your company is ready for the worst-case scenario.

Overall, a 3PL service can help in receiving, shipping, and even fixing a recalled product with little to zero business interruption. All it needs is a collaborative effort from both parties to help build a strategy best for your company. As we all know, you never know what could happen tomorrow, and the best way to be prepared is to be ready for it­­––today.

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