Supply Chain Management Accountability

In: Business and Management

Submitted By hgill006
Words 568
Pages 3
How can accountability be better managed in long, global supply chains? (15 pts) Accountability means being held responsible for a task agreed to be accomplished. In today's world, accountability for global supply chains must extend far beyond signing a contractual agreement. The Mattel case shows us, that even with the most trusted suppliers, a favorable contract with clearly stated terms and policies is not enough. Mattel’s suppliers failed to comply with the regulations set in the contract to not use multiple levels of sub-contractors and to only use paint that was lead free. The extra step that Mattel (and many other companies in a global supply chain) needed to take was to ensure compliance with the agreed upon terms. With the pressures to continue to cut costs and still produce the same quality, companies in global supply chains must be involved with the supplier in every step of the procurement process until a final product has been delivered. As companies continue to engage in business overseas, the following steps can be taken to help better manage accountability in long, global supply chains:
Communication and Collaboration: It is very important that companies communicate expectations to their suppliers. The contract would be the first line of establishing what is needed from the suppliers, the regulations that need to be followed, as well as the consequences for not adhering to the contract. To ensure compliance, routine meetings with suppliers must be conducted to outline goals and measure performance. The contracting company should share information with suppliers on things like known low quality raw material suppliers, new regulations, and new technologies.

Training and Education: Mattel had 200 employees in Hong Kong whose sole responsibility was training and supervising its Chinese contractors. Questions have to be asked about…...

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