Executive Briefings

Supply Chains Are Only as Sustainable as Their Worst Supplier Participants

The road to creating user-friendly, science-backed, technology-enabled supply chains is paved with good sustainability intentions that get foiled by today's dynamic, global complexities. Achieving sustainability of scale requires involvement of the entire supply chain. To meet the needs of customers and markets, manufacturers need up-to-date and accurate information about their suppliers' materials and components.

The news is filled with stories that demonstrate just how costly a lack of supply chain intelligence can be:

• Mattel had to recall almost 1 million toys in 2007 because they contained lead-tainted paint from a supplier in China.

 Nintendo found there was nothing amusing about getting a zero on its conflict minerals report card in 2012.

 Apple’s iPhone lost some of its glitter in 2012 when unfair and unsafe labor practices by suppliers in China were exposed.

These manufacturers had one thing in common: Supply chains are only as sustainable as their worst participants, and at least one supplier in the all-too-real examples above delivered materials or engaged in practices that were deemed dangerous or otherwise unacceptable.

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The news is filled with stories that demonstrate just how costly a lack of supply chain intelligence can be:

• Mattel had to recall almost 1 million toys in 2007 because they contained lead-tainted paint from a supplier in China.

 Nintendo found there was nothing amusing about getting a zero on its conflict minerals report card in 2012.

 Apple’s iPhone lost some of its glitter in 2012 when unfair and unsafe labor practices by suppliers in China were exposed.

These manufacturers had one thing in common: Supply chains are only as sustainable as their worst participants, and at least one supplier in the all-too-real examples above delivered materials or engaged in practices that were deemed dangerous or otherwise unacceptable.

Read Full Article