Product recalls for new and established products occur all too often, and they have serious repercussions. A compromise in product safety can cause devastation for businesses. For companies offering goods to the public, even minor compromises of product integrity can have significant and potentially permanent consequences. For these businesses and their products, whether food, beverage, pharmaceuticals, consumer goods, ingredients or component parts; the risk of a product recall and/or contamination remains a severe exposure assumed by all stages of the supply chain.

The product recall is an effort to limit ruination of the corporate image and limit liability for corporation. It can be difficult, if not impossible, to determine the total financial impact of releasing a defective product that could endanger someone’s life.  This heightened concern has changed the dynamics between suppliers and OEMs. The manufacturing and automotive industries have close and co-dependent relationships between the supplier and customer, OEMs are increasingly placing responsibility contractually down to their suppliers where possible. Issues surrounding responsibility for design and assembly can complicate who may be at fault.

Product manufacturers operate in a state of constant innovation and development. Regulatory agencies and various governmental bodies, tasked with enforcement, have contributed to an environment of intensifying standards and expectations. Today’s technology allows sharing of information, any offense can reach millions of consumers in an instant. A dangerous product can breach customers trust and cause widespread irreversible damage to a company’s brand and revenue.