The Impact of Data Sharing in Product Recalls: A Cost-Based Approach

Product recalls often incur substantial operational, and reputational costs across supply chains due to precautionary “overkill” practices. While data sharing is increasingly promoted to enable more precise recalls, evidence on its actual impact remains limited. This work-in-progress paper investigates how data sharing can impact recall costs by conducting a multiple-case study of four recall incidents across the food and automotive sectors. For each case, we map tangible and intangible recall costs, as well as the risks associated with sharing data. We estimate the potential reduction in recalled products and preliminarily suggest conditions under which such potential could be reached. In the next step, we aim to support our findings with quantitative proof on the costs and risks of data sharing in product recalls and perform structured mapping of recall cases to uncover patterns in potential for data sharing.