Protect your supply chain against calamities like the horsemeat scandal

By Alexander Ellebrecht | February 25, 2014

Another food scandal sweeps across Europe, leaving many consumers insecure and many a retailer and product brand significantly damaged. Media and politicians are once again calling for more food testing and more governmental enforcement of the existing rules. But is this really the only solution we have for this kind of problems?

A government can only establish rules and set up control systems for the region it is responsible for, but supply chains are increasingly international. To efficiently protect your supply chain against food risks, we believe transparency is a more effective option.

The collaborative power of supply chain partners, be it buyers and suppliers and/or competitors, will uncover frauds much faster and expel the wrongdoers from the supply chain more effectively. By sharing information about suppliers, transactions, audits and food tests with supply chain partners the value of that information is multiplied many times while its costs are shared. A good example of such supply chain co-operations is the german Allianz Futtermittelsicherheit (safe feed alliance). Here, feed suppliers that compete with each other for the favour of farmers collaborate and share information about the supply chain. For example, they collaboratively audit possible suppliers and if a delivery is rejected they inform each other about this. At the end, if a supplier loses the trust of one feed producer, he loses the trust of all and vice versa. That will motivate a supplier more than any governmental penalty.

Of course, making a supply chain transparent isn't free of charge either. But then again, transparency doesn't only serve your risk management. A transparent supply chain enables you to create and communicate competitive advantages, to improve its sustainability and to increase its responsiveness. Read more about transparency and what chain information management can do for you on our site. Or call us to find an innovative and save solution for your supply chain.

 

Posted in supply chain calamities

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