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Planning for the Inevitable Product Recall
內容大綱
The importance of planning for a product recall can be seen in the large number of recalls, their increasing frequency, and the overall costs they incur, both direct and indirect. Direct costs include: communicating to all affected parties; the logistics of recovering, repairing, and returning the product; and the loss in profits due to diminished sales during and after the recall period. Indirect costs occur in lowered stock price and market value. This article offers a guide to planning during three phases of product recall: prior to, during, and after the recall. Proper readiness for product recalls can substantially minimize both direct and indirect costs.