This study investigates how reverse logistics plays a crucial role during the crisis of a product recall. Product recall is a rapidly growing problem that can affect a business pertaining to any industry that causes significant damage to the organization. The effect of such an event can however be minimized with the implementation of a functional logistical system. We analyze in detail, the cause and impact of a product recall on an organization and logistical procedures followed during such time. We further examine the categories of reverse logistics and various implications that may occur in logistics specifically during a recall. The article also focuses on the role of third party logistics, and warehouse management system during the event of a product recall. The study simultaneously aims at comprehensively covering the logistical implications of a product recall. Product Recalls are a serious cause for concern for not just large scale but small and medium scale enterprises as well. The ability of the firm to withstand product recalls is evaluated on the basis of their preparedness to continue with the recall and their regular operations concurrently. This can be observed in the latter part of the study where the case of Nestle Maggi, one of the biggest product recalls is carefully reviewed. For the purpose of analyzing Nestlé’s reverse logistics procedure, we gathered secondary data from various sources. Based on the data collected and reviewed from external sources, the study highlights various suggestions and alternatives that could have been adopted to reduce the cost implications faced by the company.