Vendor Blacklisting: Heads Will Roll

August 21, 2007 at 6:06 pm Leave a comment

Quality and safety concerns have affected just about everything from China recently – from pharmaceuticals to fish to toothpaste to dog food to Polly Pocket.  (Although anything that gets Polly Pocket off the floor is welcome to me.   Stepping on those little plastic toys is second only to LEGO bricks as torture to bare feet.)      

Knowing that exports are keys to their booming economy, China is responding aggressively.   They recently announced the blacklisting of more than 400 companies for export violations.   In addition, nearly 300 drug test vans will patrol rural China in search of counterfeit drugs.   They have worked with U.S. officials for a new framework of safety assurances.   But the ultimate counter to the quality crisis is that the former head of the Chinese State Food and Drug Administration was executed for accepting bribes in exchange for approvals.   

While the Queen of Hearts in Alice in Wonderland shouted, “Off with her head!” for a much lesser violation, I doubt we’ll see a response that extreme in the US.  What we could see is another layer in the “Know Your Vendor” movement from the government or from our own concern that we’re providing the best to our customers.   Another watch list against which we check our providers. 

Our Take:  Flexibility while being diligent in dealing with security and partners is key.  Issues arise and are cleared.      Regardless of how you do it, you need to track who you work with.   Know their people as well as you know their financials.  Oh, and stop chewing on your toys.       

Entry filed under: Know Your Vendor, vendor management.

Did you hear the one about … What’s My Line?

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