Product Recall Coverage for Metal Stamping Shops



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Global supply chain management has revolutionized the way companies do business in the 21st century, however, it has also posed several quality control challenges for manufacturers. Metal stamping can be applied to a variety of materials based on their unique metalworking qualities for a number of applications across a wide range of industries. Stamping is the process of placing flat sheet metal in either blank or coil form into a stamping press, where a tool and die surface forms the metal into a net shape. Other materials, such as polystyrene, can also be used in the stamping press. Stamping includes a variety of sheet metal forming manufacturing processes, such as punching, blanking, embossing, bending, flanging, and coining. This can leave plenty of room for human error, manufacturing defects, and design flaws, which puts metalworking shops at additional risk in the event of a quality control error that leads to a product recall. Product recall coverage for metal stamping shops is available for companies looking to mitigate the potential risks associated with product recalls, including third party liabilities stemming from defective products.

Keeping the Lines of Communication Open
A product recall is the most significant action a company can take when admitting a product is not up to specifications. Product recalls have continued to rise to record levels over the past few years, despite numerous advances in technology. Every year, people are injured or killed because of faulty products that did not undergo thorough analysis and testing in the design and manufacturing process. While consumers do not want to hear that they’ve wasted their hard-earned money on a defective product, being transparent in the event of a product defect can go a long way towards building and maintaining consumer trust.

In a study conducted by the Relational Capital Group, 87% of consumers said that they would more likely purchase and remain loyal to a brand that handles a product recall honourably and responsibly. During a product recall, it is important for all companies involved to react quickly with an announcement and take responsibility for the mishap before the press can paint your brand in a negative manner.

Products are Recalled for Consumer Safety

When a product is recalled, the most immediate concern for most companies is the impact on the bottom line. However, most of the damage incurred as a result of a product recall comes long after the affected products are taken off the market.  Litigation costs, government fines, and the damaged reputation of the brand often end up costing companies far more than the direct costs involved in the case of a product recall. Ultimately, products are removed from the shelf because they pose a threat to the health and safety of consumers. While the fallout from product recalls is predominantly negative, it does offer a chance to enhance consumer engagement.

The aftermath of a product recall can create a ripple effect throughout the entire supply chain, leaving several companies susceptible to damages and lost sales. Product recall coverage for metal stamping helps protect shops from all of the costs associated with conducting a product recall, including third party liabilities that stem from malfunctioning products or parts. Product recalls can be costly, but they don’t have to be catastrophic. When handled properly, companies can emerge from such a crisis even stronger than before.

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