What Supply Chain Managers Can Do About Safety Recalls?

If you are in Australia, it is more than likely that you already know this saga. If you are not in Australia, or do not follow the news cycle, take a look at the video below:

This happens all too often. Once every few months, in some part of the world, a crisis of similar nature emerges.

Several years ago it was this:

I could keep finding a lot of similar videos about products and places – but you get the point. And, it is a not a new problem either. Take a look at this story from over 3 decades ago:

The point is that the lack of supply chain security hurts the company, the industry and the economy significantly.

Some band-aid solutions are rolled out – mostly to restore public confidence and get the demand up again. However, a comprehensive supply chain security regime is never put in place.

Having done large scale supply chain transformation projects for companies as sensitive as explosives, chemicals, fertilizers, food stuff, soft commodities, bakeries, meat, dairy, livestocks, and many others, we have seen both – the vulnerabilities and some really cutting edge supply chain security in practice.

Unfortunately, supply chain security, in conceptualisation and training, has not kept paced. There is no university course that covers this topic sufficiently. Conferences skirt this topic. Books cover it sketchily. Regulatory framework is patchy and officious.

And after complying with the regulatory burden most people relax in the belief that they have done enough.

In fact they have no basis to go beyond regulatory requirements, lest they are accused of being paranoid or overzealous about security.

Yet, dozens of incidents have demonstrated that regulatory framework is never enough. Each company has to develop its own supply chain security framework, based on its own particular circumstances. Even compliance with insurance requirements is not enough. Reputation damage to your business is a non-insurable loss in most cases.

How do you develop your own supply chain security framework?

Complying with regulatory and insurance requirements is a good start. You also need a more robust, holistic and comprehensive supply chain security framework that provides the guidelines for your own company’s supply chain security model.

Our report titled  SUPPLY CHAIN SECURITY – A COMPREHENSIVE, HOLISTIC FRAMEWORK provides the information to get you started.

Better still – run a one day workshop based on the content of the report. It will be the best 20K your company ever spent.

 

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Vivek Sood

  • Klaus M says:

    PRoduct recalls are very common – mostly due to technical issues with the product quality. With ability to track and trace – product recalls become a big mess just as you show in the video above. Theoretically, we have all the capability to track and trace all parts of each product back to origin – in real life this is not that simple. If automobile companies hafe such problems then what hope to strawberry sellers have. Why blame supply chain manager?

    • admin global says:

      We have regulatory requirements related to trace-ability of the supply chain – EU is by far the most sophisticated regime in this regard. Yet, in practice even they fall short at times. This is a growing field of supply chain sophistication. As the technological capability grows – so will the trace-ability.

  • Supply chain & Logistics says:

    We are working on the security of our product supply chain to reduce the risk of lose.
    How Will Supply Chain Security Develop Now?
    We found some important tips as I quote here “Customer needs, technology and criminals will not stand still. Supply chain security will continue to change. Yet, as in supply chain itself, certain principles will hold good. Designing security into a supply chain is one example. This includes taking out vulnerabilities at the start. This will always beat trying to add security in later. Layered defenses are another immutable basic. So too is vigilance about threats moving and evolving. With these in mind, apply standards as fit, but never lose sight of the main goal of providing customer satisfaction and generating profit – safely.”(https://bit.ly/2Ij3sl6)

    But our question is the same “How Will Supply Chain Security Develop Now? ”
    Could you help it out?

    • Vivek Sood says:

      The report mentioned in the blogpost above answers this question is quite a bit of detail. If you want synopsis of the report – send me an email.

  • Honrad says:

    The ultimate point of supply chain management is to help companies cost competitive while maintaining the bare minimum of inventory consistent with achieving a targeted service level. Global outsourcing, reducing the number of suppliers you do business with, and using optimized planning to reduce inventory are common techniques companies use to accomplish a cost-effective supply chain.

    • Lucas M says:

      Supply chain management is the oversight and facilitation of the people, processes, information, and technologies involved in the flow of goods and services from manufacturers and producers to customers and end users.

    • Vivek Sood says:

      And, do all of the above with safety, security and integrity.

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