Many organisations, suffer from designing a supply
chain. They need to be in close
relation to suppliers, distributors, employees and all other stake holders
to make their product successfully and earn profit back from their product.
This exercise revolves around a case how the organic soybeans producers
overcame the issue of GMO soybeans, and how they sold the natural organic GMO-free
soybeans to the public. This case proves that a person/organisation should
be responsible and design supply chain not only efficiently but also
responsive supply chain to tackle the problems before it becomes serious
supply chain management, Risks, Stakeholder, Risk management
supply chain is a difficult task. It is entirely different for different
organisations. One organisations design of supply chain doesn’t work for
another. While supply chain design, it should not only be efficient but also
responsive, to meet uncertainty of demands all the time. Our team exercise is
about an example of commercial production of GMO-free soybeans supply chain. Most
of the countries are in demand of GMO free soybeans. But normal producers and
importers found it so difficult. Because there was no mechanism of tracking the
origin of the products and controlling their production and commercialization
in an adequate way to guarantee the absence of GMOs. Hence “gebana” – an association
of NGOs and consumers, decided to back-up the commercial production chain of
GMO-free soybeans to supply the Swiss market. Our group work lies in understanding
how the organisation managed the issues regarding supply chain.
Risk Management in Sustainable Supply Chain Management (SSCM): Lessons Learnt
from the Case of GMO-Free Soybeans
of publication: 2005
Tauscher et al
To find a systematic approach that work out best for the company to meet its
demand as well as manage the risks.
BSD developed a systematic management model which can be suitable for specific
needs of industry.
the green revolution in the late 1970s, soybeans supply got the attention of
consumer organization. Political claim from political claim was made since the
production of soybeans involved animal feeds and that it reduced biodiversity.
In the 1990s, the Genetic Modified Organisms (GMOs) was introduced. People in
Europe were in demand for GMO-free products because of the protest of NGOs and
consumers against products from GMO. Importers found it difficult to trace the
origin of the product.
hired a consultancy BSD for commercial production chain of GMO-free soybean to
supply the Swiss market. BSD defined three goals for the soybean supply chain.
The first was to export to Switzerland
GMO-free soybeans including a guarantee of GMO free.
The next goal was to develop a new soybean
product which could add value both to environmental and social.
The last goal was to make a social fund with
the revenue generated from soybean sales.
The role of BSD is to
function as a third party, without any involvement in the production chain, but
with technical knowledge of standard and with the sole interest of establishing
a good production chain. It also required the communication between the facilitators.
The globalisation of world economy along with the
speed at which information is processed and the concerns regarding human rights
and environment related issues arise have become rapid, which have a highly direct
reflection in the consumer market also. Lots of steps have been adopted to
improve the supply chain management wherein, information is traceable, transparent
and is evident to be much more secure.
In order to achieve this the corporates have started
to ensure that they maintain a good “sustainable supply chain management
It defines social
and environmental standards
Ensure that the
business practices are sustainable
evaluation of processes.
further explained with the references taken from the case study on “Risk
Management in Sustainable Supply Chain Management (SSCM): Lessons Learnt from
the Case of GMO-Free Soybeans”.
In 1990s several NGOs and huge population of consumers
were against GMO food products. The Buyers, supermarkets and importers were in
search and demand for the GMO-free products. In order to identify and track
their origin, control and ensure proper production and commercialisation, ‘Gebana’
came into action to support this process to supply the GMO-free soybeans to the
The association had several Goals.
To export GMO-free soybeans to Swiss market
Guarantee the organic certification
Have efficient working control system to
ensure quality production of GMO-free soybean
To produce more social and environmental value
Have information passed on among the agro and
industry to be successful in the business, they should have a good team to work
and a framework produce efficient product. The most important is the
sustainability in the production. Further on this case of Soybean, it
illustrated the need for sustainable supply chain management and managing
inherent risks. Here in this case, proper process was not planned to attend the
risks. This would lead to the bottlenecks and conflicts. They didn’t have
responsive supply chains. Lastly, any supply chain process should have a
strategy to avoid and eliminate risks and other further consequences. Each
process is different from the other, so that has to be addressed using tailor-made
methods. The main necessity here is to find the appropriate strategy to curb
the risks that are involved, and manage them properly.