The Business Impact of Costly Product Recalls
Recalls caused by issues with artwork and packaging are an ongoing problem for many consumer and pharmaceutical companies. Problems can come from a number of areas: non-standardized bills of material, translation mistakes, typos and poor proofreading, expired digital assets, poor printing quality, third-party artwork suppliers and printing shops.
Consumer and pharma companies must also deal with a very strict regulatory environment. According to the FDA at least 65% of packaging and labeling-related recalls are related to artwork and content management errors. The cost of artwork-related recalls for an average multinational pharma company can amount to several million dollars a year.
Even without a recall, the time wasted with unclear briefs, missed annotations and artwork problems can lead to longer time to market or non-compliance fines, also adding pressure to profit margins.