How Much Risk is in Your Supply Chain?

Every company's worst nightmare is a product recall of huge magnitude – one that not only causes huge markdowns and financial losses, but damages the company’s reputation as well.  Years ago in the US these concerns were exemplified by the Tylenol contamination case.  With a very carefully managed recall and a thorough investigation Tylenol rebounded and is again a strong brand name.

Earlier this year there were concerns about the safety of food products coming out of Asia – frozen Tilapia fillets being one product restricted for a time by the USDA.   Next we heard about the leaded paint being used on child toys.  Now, in a bizarre twist, children’s toys are found to metabolize into dangerous drugs when ingested.  CNN reports on the story today

Supply Chain Management and Logistics must go far beyond managing for maximum efficiency.  It has become critical that a company minimize risk in it’s supply chain - risk of poor quality, contamination, safety lapses, security, exposure to cost increases and service failures.  A full audit of all types of supply chain risk is needed to identify areas of exposure and re-structure the chain into a low risk strength for the company.