Achieve a Win-Win with Safety at the Heart of Production
When Samsung faced product recalls last year for its Galaxy Note 7, the company estimated that the case would cost it over US$5 billion. But the South Korean giant is not alone. Plenty more product recalls have been issued since – with a variety of manufacturers this year asking customers to return items from children’s toys and car seats to washing machines and frozen pizzas.
For manufacturers, managing product recall risk can be a major headache. Rigorous testing and quality control allows manufacturers to drastically reduce the risk of recall. But the cost of this testing needs to be weighed against product cost. As high prices can be off-putting for customers, manufacturers are often wary about spending more on testing.
That said, in the modern, connected world, news of product recalls spreads like wildfire across the Internet, amplified by the advent of social media. This often causes substantial and lasting damage to a company’s reputation. Mounting e-waste-related environmental concerns also come into play. Modern customers value sustainability, and the idea of landfills piling up with faulty electronics and the like has become very disconcerting.
But what do companies and consumers really need to know about the risks of product recall? And how can we as a society go about minimising them?