ABSTRACT 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 issues.
Keywords: Sustainablesupply chain management, Risks, Stakeholder, Risk managementIntroductionDesigningsupply chain is a difficult task. It is entirely different for differentorganisations. One organisations work doesn’t work for another. While designingsupply chain, it should be efficient plus responsive, to meet any kind ofdemands.
Our team exercise is about an example of commercial production ofGMO-free soybeans supply chain. Most of the countries are in demand of GMO freesoybeans. But normal producers and importers found it so difficult. Becausethere was no mechanism of tracking the origin of the products and controllingtheir production and commercialization in an adequate way to guarantee theabsence of GMOs. Hence gebana – a Swiss association of NGOs and consumers,decided to backup the commercial production chain of GMO-free soybeans tosupply the Swiss market.
Our group work lies in understanding how theorganisation managed this issue of this supply chain and overcame from that. Background ABDCrating: Title:Risk Management in Sustainable Supply Chain Management (SSCM): Lessons Learntfrom the Case of GMO-Free SoybeansYearof publication: 2005Authors:Tauscher et alObjective:To find a systematic approach which will help companies in order to establishtheir sustainable supply chain management and inherent risks mean. Results:BSD developed a systematic management model which can be suitable for industryspecific needs.Methodology:Afterthe green revolution in the late 1970s, soybeans supply got the attention ofconsumer organization. Since most of the soybeans were produced from animalfeed, the importers had to face the risk of political claim that it reducedbiodiversity. In the 1990s, the Genetic Modified Organisms (GMOs) wereintroduced.
People in Europe were in demand for GMO-free products because ofthe protest by NGOs and consumers against genetically modified products. Importersfound it difficult to trace the origin of the product. A Swissassociation of consumers and NGOs called gebana hired a consultancy BSD forcommercial production chain of GMO-free soybean to supply the Swiss market. BSDdefined three goals for the soybean supply chain. The first was to export to Switzerland GMO-free soybeans including a guarantee of GMO absence. The second goal was to develop a new soybean product which could add environmental and social value 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 tofunction as a third party, without any involvement in the production chain, butwith technical knowledge of standard and with the sole interest of establishinga good production chain.
It also required the communication between the facilitators. Results:Along with the globalisation of world economy, thespeed at which information is processed and the concerns regarding human rightsand environment related issues arise have become rapid. These have a highly directreflection in the consumer market also. There has been a lot of steps adoptedto 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 startedto ensure that they maintain a good “sustainable supply chain managementsystem”. It defines social and environmental standards Ensure that the business practices are sustainable Involvement of strategic planning Monitoring and evaluation of processes.
These arefurther explained with the references taken from the case study on “RiskManagement in Sustainable Supply Chain Management (SSCM): Lessons Learnt fromthe Case of GMO-Free Soybeans”.In 1990s several NGOs and huge population of consumerswere against GMO food products. The Buyers, supermarkets and importers were insearch and demand for the GMO-free products. In order to identify and tracktheir origin, control and ensure proper production and commercialisation, theSwiss association called ‘Gebana’ came into action to support this process tosupply the GMO-free soybeans to the Swiss market. The association had several Goals. · To export GMO-free soybeans to Swiss market· Guarantee the organic certification· Have efficient working control system toensure quality production of GMO-free soybean· To have more social and environmental valueadded to the soybean production.
· Have information passed on among the agro andfood industries · To ensure that a social fund is created torevert the revenues earned from sales of soybeans back to the producers for their socialupliftment and encourage more production.· Continuous evaluation of all social conditionsprevailing and ensure the cooperation among the industries, producers andconsumers. ConclusionFor anyindustry to be successful in the business, they should have a good team to workand a framework produce efficient product. The most important is thesustainability in the production.
Further on this case of Soybean, itillustrated the need for sustainable supply chain management and managinginherent risks. Here in this case, proper process was not followed to attendthe risks. This would lead to the bottlenecks and conflicts. They didn’t haveresponsive supply chains.
Lastly, any supply chain process should have astrategy to avoid risks and other consequences. Each process is different fromthe other, so that has to be addressed using tailor-made methods. The main cruxhere 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 processand the its risks.