Product Recalls and Supply Chain Safety

The increase in product recalls and product liability suits over the past few years has put the spotlight on supply chain safety. Case in point, in August 2007 Mattel Inc. had to recall almost 20 million Dora the Explorer and Barbie toys because a subcontractor further down their supply chain used lead paint.

Part of the problem lies with manufacturers going with suppliers based on cost. The other problem lies with companies not following up with these suppliers and ensuring that they have adequate quality procedures.

One solution may be using a smaller pool of suppliers and fostering better relationships to ensure that the suppliers are using the correct materials and following the correct procedures. Unfortunately, one major drawback is that the company becomes more dependent on that small pool. If anything happens to any one provider in that supply chain, the whole chain stops.

It is apparent that companies need to look at the big picture when choosing suppliers and subcontractors. There’s an old adage about paying for services:

You have three options; fast, cheap and good. You can only pick two. If you want it fast and good, it won’t be cheap. If you want it cheap and good, it won’t be fast.

Unfortunately, it seems that lately companies are choosing the third option — fast and cheap – and what they are getting are a bunch of recalls.

Metier Law Firm – Denver Accident Attorneys

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