If there were ever any doubts about the validity of today’s global economy, let the recent firestorm of controversy over the growing list of toy recalls be a stark reminder that it is, in fact, very real. That is why a clear view of the entire supply chain is critical.

Increasingly more products are made in various countries and regions, and for manufacturers that don’t have a firm grasp on visibility, traceability and, above all, accountability throughout their supply chains, it might be high time to reexamine some of these critical areas.

A new feature at IndustryWeek, for one, outlines five elements to choosing a supply chain management program. In it, Lori Bestervelt, Ph.D., senior vice president and chief technical officer at not-for-profit product certifier and standards writer NSF International, writes the five elements are traceability, measurement, certification, efficiency and organizational buy-in. Highlights include the following:

• The key to effective traceability is to make sure each supplier [...] makes product quality and safety a priority. Most problems that could result in a batch isolation or recall occur as the product is handed off from one supply chain component to another.

• Reinforce the benefits of supply chain management from the top of your organization downward by highlighting the profitability and marketability that comes with quality.

Perhaps heeding the call of the aforementioned, Boeing has appointed a new vice president, Pat Shanahan, to reel in the aerospace company’s troubled 787 Dreamliner program.

The Seattle Times reported over the weekend:

Shanahan’s changes, focused on fixing current production issues and mitigating risk ahead, rearrange the executives who now report to him and divide key responsibilities into three major areas: airplane development, the supply chain, and final assembly and delivery.

Shanahan appointed an executive specifically to oversee one of the major supplier partners, Vought, which builds the airplane’s two rearmost fuselage sections in Charleston, S.C. The Seattle newspaper speculates that “the appointment is a clear indication that Vought is a weak link in the Dreamliner supply chain.”

Unintentionally, Shanahan is employing the five-step strategy proposed in the IndustryWeek report, in this case as an effort to get the massive Dreamliner project back on track and to bolster Boeing’s image.

Gaining control of one’s supply chain is certainly not a foreign concept to mega-retailer Wal-mart, which recently became a founding member of the Supply Chain Innovation Center in Hong Kong, according to an announcement at MoreRFID.com. Here’s how it breaks down:

The SCIC is a joint initiative between GS1 Hong Kong and Hong Kong Science and Technology Parks Corporation (HKSTP) to bring supply chain management professionals and technology together to enable enterprises in Hong Kong and the Pearl River Delta to become more responsive to market needs and boost operational efficiencies, while bolstering overall economic competitiveness.

The SCIC was established last February.

Rollin Ford, executive VP and Chief Information Officer at Wal-Mart, said in a statement: “Our company relies on advanced, transparent supply chain management technology for efficient and accurate inventory management. By supporting the supply chain hub for Hong Kong , we can maximize supply chain management technology — especially EPC.”

So what’s the big deal here? Well, Wal-Mart is the world’s largest retailer, and considering that the company uses more than 20,000 suppliers in China, it doesn’t take a supply chain guru to understand the untold efficiencies that might be generated from such a partnership.

While the retail giant isn’t exactly known for being “leading-edge” when it comes to the treatment of employees, I still say good for Wal-mart for being proactive when it comes to meeting future challenges that the global supply chain plans to throw its way.

Resources

Strengthen Your Supply Chain, Protect Your Brand
by Lori Bestervelt, NSF International
IndustryWeek, Nov. 7, 2007

Boeing VP to Watch Over 787 Supplier
by Dominic Gates
The Seattle Times, Nov.10, 2007

Wal-Mart Joins Hong Kong Supply Chain Innovation Centre as Founding Member
MoreRFID, Nov. 6, 2007