Larger companies tend to be more prepared and better resourced to have developed and be able to implement a crisis management plan. Those that are unprepared will find out, to their cost, that discovery of a problem means that shopping around for competitive quotes is not an option. The priority is to identify and isolate the problem. If a recall is necessary, it needs to be initiated quickly. Any delays in removing product from the supply chain or from the retailers' shelves can be disastrous.
Companies have to be seen to be confident that they are on top of the problem and dealing with it .
The discovery by a brewer that cans of beer had been accidentally contaminated led to an immediate recall of the affected batches. Costs will be incurred recalling the product from consumers, retailers and other parts of the supply chain. These costs will typically relate to transport, storage and any additional staff required. Certification of the destruction of stock by third parties is vital to minimise the risk of product finding its way to the secondary market, with damaging consequences. Counting the cost of the recall, to support a claim on insurers or on a supplier of defective ingredients, means that the business must establish robust systems for data capture to record additional costs.