Study: Recall rates expected to rise

New York, NY — September 3, 2015 — Deloitte recently announced the results of a June poll surveying professionals from different industries on the likely trends regarding auto recalls that will arise in the near future. Judging from the responses of nearly 80 subjects, recalls continue to contribute to the way suppliers see manufacturers, and these companies face multiple challenges in handling recalls effectively, including maintaining strong communication and meeting customer requirements consistently.

The main focus of this poll was the growing effect of analytics software on recalls, as well as the way organizations are using them. More than 24 percent of respondents, the largest share, said that their company is optimizing their analytics, and 52 percent said that recalls have a “high impact” on the” working relationships between suppliers and OEMs.”

In a press release accompanying these results, Deloitte Advisory advanced analytics senior manager Derek Snaidauf referenced some of the steps he believes businesses can take for a greater influence on proper recall performance.

Snaidauf specifically said that “leading OEMs are starting to adopt innovative analytic capabilities like proactive sensing for early issue identification and command centers for campaign management. By cross-source correlating internal and external data sources, employing specialized advanced analytics, and leveraging interactive visualizations, these companies can improve customer satisfaction, vehicle safety, and brand perceptions.”

Most of the respondents (42.3 percent) also believe that the coming years will bring recalls with a narrower focus that impact fewer vehicles. Compared to this, 20.5 percent said that the smaller number of recalls will be accompanied by an increase in units, while nearly 18 percent said there will be no change and 19.2 percent said they “don’t know.”

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