Managing Recalls in the Automotive Industry

Behind the scenes of recalls: How OEMs and dealerships work to resolve issues

If you've ever dealt with a vehicle part recall, you understand what a headache it can be. For the vehicle owner, it means spending time out of your day to get the problem fixed. But behind the scenes, automotive companies are working to manage a complex logistics process.

When facing an automotive recall, the ability to act quickly and precisely is essential for limiting disruption and restoring trust. Keep reading to learn what makes the process so complex and what to look for in a transportation provider.

What makes automotive recalls complex?

At their core, automotive recalls work the same as any other reverse logistics process. To correct manufacturing issues, defective parts must be collected, consolidated and then shipped to a facility for either remanufacturing or disposal. A unique factor, though, is that new replacement parts need to be delivered and installed simultaneously to resolve the issue.

Besides having to manage inbound and outbound product flow, these recalls are made even more complex due to the need for:

• Quick turnarounds in order to retain customer trust and confidence
• Extreme efficiency due to the large number of parts affected
• High standards due to the nature of safety regulations in the industry

With the right support from a logistics partner, you can develop a strategic approach that ensures smooth, efficient handling at every stage of the recall.

Partner with the right logistics team

Having a vetted and experienced logistics partner with in-depth knowledge of automotive recalls can help ensure streamlined operations. This partnership can reduce the strain recalls have on manufacturers and provide assurance that both returns and replacements are handled quickly and with precision.

When looking for the right partner, vet them on the following by asking, "Do they…"

Optimize routes and efficiencies

Effective route planning reduces transit time and costs while ensuring timely delivery of replacement parts to dealers or service centers. This speed is essential, especially when safety is involved. A logistics provider with expertise in optimized routing can improve delivery times to boost customer satisfaction.

Have resources like ample warehousing and inventory control

Defective parts need to be stored and processed somewhere while replacement parts are rolled out quickly. Advanced inventory control systems help track parts accurately, maintain stock levels and ensure replacement parts are available and ready to ship.

Provide incentives for clean parts

Because recalls involve used parts, shipping them can get messy. ArcBest can offer incentives for dealerships when their recalled parts are clean from grease and oil. This allows for a smoother process once the parts get to their destination warehouse. This is especially important if the parts are due to be remanufactured.

Transport EV batteries

Because batteries are considered hazardous materials, having a provider like ArcBest that can haul class 9 hazmat, is critical if you're dealing with those parts.

ArcBest can simplify your recall process

With automotive recalls, experience matters. ArcBest has a proven track record of shipping and coordinating automotive recalls with some of the largest OEMs on the market. The vehicle recall supply chain is complex, so call us today to simplify the process.

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