supply chain management, Risks, Stakeholder, Risk management
Our group exercise is
about illustration of well designed commercial production chain of GMO-free
soybeans. Many countries started demanding 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 productionand
commercialization in an adequate way to guarantee the absence of GMOs. Hence
gebana – a Swiss association of NGOs and consumers which had previously
pioneered banana fair trade, decided to backup the commercial production chain
of GMO-free soybeans to supply the Swiss market. Our group work is to
understand how the organisation managed the issue of this supply chain and
Title: Risk Management in
Sustainable Supply Chain Management (SSCM): Lessons Learnt from the Case of
Year of publication: 2005
Authors: Tauscher et al
Objective: To find a
systematic approach which will help companies in order to establish their
sustainable supply chain management and inherent risks mean.
Results: BSD developed a
systematic management model which can be suitable for industry specific needs.
After the green revolution in the late 1970s, soybeans
supply got the attention of consumer organization’s and environmentalists.
Since most of the soybeans were produced from animal feed, the importers had to
face the risk of political claim that it reduced biodiversity. In the 1990s,
the Genetic Modified Organisms (GMOs) were introduced. Supermarkets and food
retailers in Europe demanded importers for GMO-free products because of the
protest by NGOs and consumers against genetically modified products. Importers
found it difficult to trace the origin of the product.
A Swiss association of consumers and NGOs called
gebana hired a consultancy BSD in 1997 to establish a commercial production
chain of GMO-free soybean to supply the Swiss market. BSD defined three goals
for the soybean supply chain.
1. The first was to export to
Switzerland GMO-free soybeans including a guarantee of GMO absence.
2. The second goal was to develop a
new soybean product that added environmental and social value
3. The third goal was to make a
social fund with the revenue generated from soybean sales which is then given
to the producers for local development.
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 has to also facilitate the communication between the
topic / Results
With the globalisation of
world economy, the speed at which information is processed and the concerns
regarding human rights and environment related issues arise have become rapid.
These have a very strong reflection in the consumer market also. There have
been a lot of steps 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 corporate have started to ensure that they maintain a good “sustainable
supply chain management system”.
defines social and environmental standards
that the business practices are sustainable
of strategic planning
and evaluation of processes.
These are 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 there were
massive protest against genetically modified food products from several NGOs
and huge population of consumers. 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, the
Swiss association called ‘Gebana’ came into action to support this process to
supply the GMO-free soybeans to the Swiss market.
The association had
export GMO-free soybeans to Swiss market
the organic certification
efficient working control system to ensure quality production of GMO-free
have more social and environmental value added to the soybean production.
information passed on among the agro and food industries
ensure that a social fund is created to revert the revenues earned from sales
back to the producers for their social upliftment and encourage more
evaluation of all social conditions prevailing and ensure the cooperation among
the industries, producers and consumers.
For any 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 followed to attend the risks. This would lead to the bottlenecks and
conflicts. Lastly, any supply chain process should have a strategy to avoid
risks and other consequences. Each process is different from the other, so that
has to be addressed using tailored methods. The main crux here is to find the
appropriate strategy to curb the risks that are involved. So any company should
involve in total quality management to handle the process and the related