Message from the President

by Gailen Vick, Reverse Logistics Association

Reverse Logistics Magazine, Nov/Dec 2007

It has almost become commonplace to hear the word recall! In the last two months, we've heard recalls on food (both human and animal), electronic equipment, children's toys and clothing. The word "recall" literally runs shivers down the spine of any grown person that is in business.

Recalls have been occurring since the beginning of time, the only differences today are the impact from a catastrophic failure in your operations supply chain and the time you have to take action. So you ask, "what's the difference between today and in the past— isn't the supply chain the same as is always been?" So, why do you need to move so fast today?" Today's supply chain has become faster; the delivery of material can make it from the procurement BOM to consumer doorstep within days. If you stand in place for more than three milliseconds after learning about a production issue, the impact for consumer safety, liability litigation issues and impact to supply chain, can be overwhelming.

We, at the Reverse Logistics Association, project that the number of recalls will actually increase as product lifecycles continue to become shorter and shorter. Never has there been such pressure to ramp-up production lines so rapidly. The chance for error increases as product ramp-up demands are given less and less time to stabilize.

If you think there is hope in the future, you are mistaken. The danger is imminent and you must be prepared. We don't know when the problem will hit us. I don't believe industry is going to slowdown; in fact, operations will continue to reduce the time it takes for parts to be ordered—from the BOM to the delivery of their products to the end user or consumer. It isn't anything that I would vote in favor, but we reverse logistics professionals will have to identify the way to minimize the impact of recalls to the bottom line.

Please take the time to read the cover story in this edition of RL Magazine. It's good food for thought and please don't let your mind persuade you that it will never happen to you or your company. Prevention is always the best case. So take a few moments, at senior levels of your company to develop contingency plans,—just in case the unbelievable occurs. I hope that a recall never happens at your company, but if it does, the person who has put a contingency plan in place, will become a real hero.