Supply Chain Managers Can Avoid Product Recall Traps
It's critical manufacturers find a way to take control before such crises occur
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The recent recall of half a million SUVs will put significant stress on Chrysler’s global supply chain, adding pressure to replenish stock and keep the impact to daily operations at a minimum.
According to Michael Lucas, CEO, FrequentZ, while automotive recalls are nothing new, they shed light on the need for advanced track and trace technology for auto parts – beyond they typical warranty-related product tracking.
“This is the second largest recall in the company’s history,” he says. “So it’s critical manufacturers find a way to take control before such crises occur. Auto manufacturers need technology to track product movement from start to finish, well beyond the warranty period, to pinpoint impacted vehicles and notify consumers before issuing a wide-scale recall.”
Lucas says this advanced access to data would allow supply chain managers to significantly narrow the scope of a recall, thereby saving millions of dollars:
“Track-and-trace capabilities are essential for industries such as automotive, pharmaceutical and food / beverage, and I believe we’ll see more of their use in the future - both to protect businesses and the well-being of those businesses’ consumers.”
About the AuthorPatrick Burnson, Executive Editor Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]
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