How buyers are reacting to product recalls
By Staff -- Purchasing, 9/13/2007 6:00:00 AM
Buyers in industries of all kinds are intensifying their supplier-management efforts in the wake of a rash of recent product recalls by Mattel of toys made in China. From setting more rigorous supplier-selection criteria, to more frequent on-site inspections to demands for assurance that tier-two and tier-three suppliers are following stringent quality procedures, purchasing professionals are instituting new procedures and reviewing best practices to ensure that their global sourcing activities, whether in China or other low-cost countries, uncover potential problems before they occur.
It's a classic tale of risk management. Quality problems are among the risks that cause supply chain disruptions, according to a major study by professors Kevin Hendricks, formerly of the University of Western Ontario, and Vinod R. Singhal, of the Georgia Institute of Technology. And, adds Dennie Norman, principal strategist for worldwide marketing at Gary, North Carolina-based SAS, Inc., those supply chain disruptions can damage a company's brand image. “Companies need risk-management roadmaps,” Norman says.
Purchasing editors have interviewed a variety of buyers in a cross-section of industrys as well as industry experts on the product-recall issue and put a series of stories online at www.purchasing.com/productrecalls.
The package of stories on Purchasing.com includes:
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Quality control moves to the forefront in wake of product recalls
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Buyers won't slow global sourcing despite product recalls
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Tips for effective global sourcing from a market expert
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Dresser-Rand manages supply chain risk
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Cains Foods asks for safety, quality certifications from food-ingredients suppliers.
Most buyers say they ask for quality inspections from sub-tier suppliers with some offering specific advice. “Visit all tier 1 and tier 2 suppliers in China to assure sound manufacturing practices are in place and functioning,” says Bill Lovell, director of global sourcing at Inovonics Wireless Corp.
To see the Full Report on How Buyers Are Reacting to Product Recalls, go here
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