What Supply Chain Managers Can Do About Safety Recalls?

What Supply Chain Managers Can Do About Safety Recalls?


Vivek Sood




January 8, 2019

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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  1. These ideas and concepts will be usually expressed by our thought leaders in multiple forums - conferences, speeches, books, reports, workshops, webinars, videos and training. You may have heard us say the same thing before.
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Vivek Sood

Our Quick Notes On Five Flows Of Supply Chain Management

Part of our new “Quick Notes” series – this report answers your most pertinent questions of the topic.

  • What are the five flows of SCM?
  • Why are they important TO YOU?
  • How can you map, track, and optimise these flows to serve YOU?
  • What is the importance of difference between "Supply Chain" and "Value Chain"?
  • What are the stellar case studies of each of the five flows?


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  • 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?

    • 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.

  • 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.

    • 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.

  • 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?

    • 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.

  • Numerous organizations are tested by the double requests of the inner financial drivers of an association and the outside client necessities for quality and effectiveness. As the client is progressively enabled and openly vocal, item quality and security have turned out to be firmly coordinated with recognized scorecards and records provider. Notwithstanding security and quality concerns, consistency guidelines can influence the production network.

  • Research shows that workplace safety outcomes are improved when the key organisation in the supply chain is also the main driver of workplace safety. Australia is one of the 186 member countries of the ILO, a powerful labour advocate developing a system of international labour standards aimed at promoting opportunities for people to obtain decent and productive work in conditions of freedom, equity, security and dignity. The ILO has developed a set of standard workplace and labour safety guidelines, research documents, and resources to help companies create safer workplaces for staff across their enterprise and supply chain.

  • Australia is a ground-breaking work promoter, building up an arrangement of global work principles that would go for elevating open doors for individuals to acquire better than average and gainful work in states of opportunity, value, security, and pride. Work environment security results in improved and key associations in a production network and undoubtedly the fundamental driver of work environment wellbeing.

  • The production network is the progression of crude materials from maker to purchaser. Key inventory network and the board abilities incorporate intensive learning abilities related to goods assemblage, warehouse management, transportation procedures, and coordination of materials, goods, and data. While production network supervisors are astounding communicators who utilize both verbal and visual specialized devices including monitoring stock with names on bundling and away from areas.

  • Supply chain is essentially a set of successive contractual arrangements designed to provide you with goods and services that you either use internally or pass on to your customers. This is typically a controlled process, best described as a network with contract conditions and oversight so that your organisation can retain control over the quality of the product you are sourcing. Inadequate workplace safety is a significant financial burden, draining a substantial portion of global GDP each year. Employers face costly issues such as forced early retirements, loss of skilled staff, absenteeism, and high insurance premiums due to work-related accidents and diseases. Yet many of these tragedies are completely preventable with sound prevention, reporting, and inspection practices.

  • Many businesses are challenged by the dual demands of the internal economic drivers of an organization and the external customer requirements for quality and efficiency. As the customer is increasingly empowered and publicly vocal, product quality and safety have become tightly integrated with traceability and supplier scorecards. In addition to safety and quality concerns, compliance regulations can affect the supply chain in finance, shipping, and outsourcing.

  • A production network is basically a lot of progressive legally binding plans intended to experience enterprises that you either use inside or pass on to your clients under controlled procedures, conditions, and obligations. The unsuitable work environment is a critical money related weight, depleting a significant segment of worldwide GDP every year taking into account a number of business-related mishaps and catastrophes.

  • The supply chain is the flow of raw materials to manufacturer, to distributor, to customer, to consumer. Supply chain managers are responsible for identification, acquisition, production and distribution of the goods a company provides its customers. Key supply chain management skills include a thorough knowledge of manufacturing processes, transportation and logistics, warehousing and information. Supply chain managers are excellent communicators who use both verbal and visual communication tools including keeping track of inventory with labels on packaging and in storage locations.

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