Case Study: Resolving Beverage Can Complaints

Challenge

Addressing a major customer complaint regarding a batch of over 6 million beverage cans.

Upon assuming control of a company's On-hold inventory, a substantial portion—nearly 10 million cans—were on hold due to a single customer complaint about a suspected product defect. This complaint, originating from one filling location, triggered a partial recall, and the decision to place over 6 million cans on-hold, spanning two full days of production. In addition, a $100K investment was made to purchase and automatic inspection equipment to identify and sort the allegedly defective cans.

Process

Reassessment of the complaint and affected shipments.

A thorough reevaluation of the customer complaint, including an in-depth analysis of historical production and quality data, raised doubts about the legitimacy of the original claim. Contrary to the customer's assertion, the customer failure report, including supplemental photographs simply did not support the judgement,  that the entire product containment was defective. This revelation prompted a comprehensive re-inspection and validation of the all of the held inventory.

Solution

Challenge to the initial complaint and strategic recovery efforts.

The successful resolution of this case led to the recovery of over $1 million worth of inventory previously deemed spoiled. This action not only resulted in a 1.3% year-over-year reduction in spoilage, but also strengthened customer relationships, and set new standards for addressing similar challenges in the future. The proactive and collaborative approach taken in this scenario exemplified the importance of thorough root cause investigation and open communication in resolving customer complaints effectively.

Outcome

Significant cost savings and enhanced customer relations.

Through persistent communication with customer contacts, additional quality checks, and collaboration with the Customer Technical Service team, a new consensus was reached. The held cans were revalidated and deemed fit for shipment, leading to a major turnaround in inventory status. This strategic approach involved direct engagement with plant quality teams and the customer, fostering improvements in complaint resolution and effective corrective actions.