THEPROBLEM/ÎÊÌâ
Recently China's manufacturing industry suffered a new setback on top of tales of toxic toys, tainted pet food and chemical-drenched pyjamas when Mattel announced a third recall of toys.
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Some of the blame must lie with sloppy management by companies in the west, which cut corners and are at the top of a long supply chain in which each supplier squeezes and is squeezed by its neighbours. As the Christmas season approaches, what practical steps can companies in the west and China really take to police suppliers? If prices have to rise to pay for assured standards, how will fierce competitors manage this?
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THE ADVICE/½¨Òé
THE CONSULTANT/×Éѯ¹ËÎÊ
ղķ˹•°¬Â×(James Allen)
The lesson for multinational corporations is "beware - you tend to get the supplier arrangement you bargained for", whether suppliers are based in Dongguan City, Delhi or Düsseldorf. Multinationals need to seek out arrangements where suppliers are rewarded not only for driving down costs but also for driving up product quality and innovation.
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Recent research by Bain has shown that companies that best addressed the issue of accountability in the value chain had two things in common: the CEO took responsibility personally because he or she saw it as a matter of corporate values and made sure that all employees felt empowered to resolve problems as they arose.
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The questions every CEO should ask are: a) do I have balanced measures for employees on the front lines or are they biased towards cost management (and what have I done lately to reward the whistleblower who speaks up for quality?); and b) am I getting the one-dimensional suppliers I deserve because I pound them down on costs rather than create a true partnership? In the long term, the best relationships will be built upon mutually beneficial expectations, not inspections.
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The writer is a partner at Bain & Company
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THE PR/¹«¹Ø
ÂÞ²®ÌØ•´÷Â×Ê©Ä͵Â(Robert Dilenschneider)
Manufacturers in China may be creating an issue that will scar that nation for decades. Their customers around the world need to act forcibly to address it. First, western companies need to be completely candid about the magnitude of the problem, hiding nothing, then spelling out the uncompromising steps they are taking with Chinese suppliers to eliminate it completely. It should be made clear that continued unsafe manufacturing will have severe consequences for Chinese companies.
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US companies need to send in inspectors to gauge manufacturing performance. If necessary, the cost of this process will have to be built into the price. Chinese manufacturers must also aggressively police their workplaces. However difficult it may be for the authorities or western manufacturers to monitor products and processes, there is no alternative. Any further recalls will sully their reputations, perhaps irreparably.
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The writer is chairman and founder of The Dilenschneider Group
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THE ACADEMIC/ѧÕß
Âí¶¡•¿ËÀï˹Íи¥(Martin Christopher)#p#·ÖÒ³±êÌâ#e#
Sourcing from low-cost locations can bring obvious benefits but also exposes a business to hidden risks.
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Managers should carry out a full audit of the supply chain (however long) to identify vulnerable links - then address those weaknesses. The supply chain, though outsourced, is still your responsibility and should be treated as part of your organisation and production process.¹ÜÀíÈËÔ±Ó¦È«ÃæÉóºË ¹©Ó¦Á´£¨ÎÞÂÛËüÓж೤£©£¬ÒÔÕÒ³öÆäÖеı¡Èõ»·½Ú£¬È»ºó½â¾öÕâЩÈõµã¡£¾¡¹ÜÒѾÍâ°ü³öÈ¥£¬µ«¹©Ó¦Á´ÈÔÈ»ÊÇÄãµÄÔðÈΣ¬Ó¦µ±×÷Ϊ×Ô¼º×éÖ¯ºÍÉú²ú¹ý³ÌµÄÒ»²¿·ÖÀ´¶Ô´ý¡£
When Nissan arrived in the UK it installed permanent supplier development teams at its suppliers to ensure all aspects of the supply chain met its own high standards. In the context of global sourcing, direct involvement with the supplier may well be preferable to dealing at arms length through an agent. Working with suppliers on quality assurance programmes - which is costly in terms of management time - can also help reduce the risk of disrupted supplies.
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To minimise risks, managers need to bring a much more detailed eye to bear on the supply chain. When the process is left to chance, companies may pay a high price.
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The writer is a professor of marketing and logistics at Cranfield School of Management
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THE EXECUTIVE/¸ß¹Ü
ÅÁ÷À•ÀÕÆÕ¿Ë(Pamela Lopker)
The tough reality of global business is that manufacturers must continually improve quality throughout the supply chain to meet global standards or risk going out of business.
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The good news is that quality can be improved. Lean technologies give managers, workers and suppliers much greater visibility and control over the supply chain. They also help deal with risks ranging from the political to the financial, as well as natural disasters and cyber attacks.
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Small or medium-sized producers lack the resources to deploy the same processes as their larger rivals, yet in order to sell to global retailers they must meet the same mandates and rules. The solution is the next generation of lean manufacturing, which is built on open standards, collaboration and automation.
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Added value and efficient production is becoming a core objective for China's small and medium-sized producers. The supply chain processes that yield such results need to be crisp and fluid.
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The writer is president and chairman of QAD, a California-based enterprise software company
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