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

My name is Vivek Sood, and I am an ex-ship captain and I specialise in global supply chain strategies for over 25 years. In 1997, I started my first SCM strategy project after I joined Booz Allen & Hamilton, the company that invented Supply Chain Management (SCM). I was blown away by the potential of SCM, and decided to learn and become one of the best in this field. I sought out the people who 'invented' SCM and requested their mentorship, and dedicated the next 5 years to working very long hours on some of the most challenging SCM projects. In 2000, I took the leap and co-founded Global Supply Chain Group. It was not an easy run - at that time, not many people knew what supply chain meant. Since then we have done a lot - but my current work is even more interesting. My current interests include studying the differences between those supply chain professionals who become the CEOs of their corporations, and those who do not. As more and more supply chain professionals get on the boards of directors of their companies, it is clear that some key factors separate those who make it to the very top, and those who remain at the tactical level - I am actively building exciting intellectual capital in this arena. What drives me to do this? And, why many of my clients also call me 'Mr Supply Chain'? You can get answers on my personal site - viveksood.com What are my professional qualifications and credentials? On my professional profile on LinkedIn https://www.linkedin.com/in/vivek/ you can find the details of over 400 projects covering over 85 countries and added value of over $1 Billion to our customers' bottom line. I have also written (or co-written) 4 seminal books, over 20 other major reports, 120 articles, and studied over 2000 supply chains in the last 25 years. Who are my clients, and what kind of work I excel in? You will need to contact me for that information - info@globalscgroup.com

  • 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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