TITLE

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.

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Keywords: Sustainable
supply chain management, Risks, Stakeholder, Risk management

Introduction

Designing
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 – a Swiss
association of NGOs and consumers, decided to backup the commercial production
chain of GMO-free soybeans to supply the Swiss market. Our group work lies in
understanding how the organisation managed this issue of this supply chain and
overcame from that.

Background

ABDC
rating:

Title:
Risk Management in Sustainable Supply Chain Management (SSCM): Lessons Learnt
from the Case of GMO-Free Soybeans

Year
of publication: 2005

Authors:
Tauscher et al

Objective:
To find a systematic approach that work out best for the company to meet its
demand as well as manage the risks.

Results:
BSD developed a systematic management model which can be suitable for specific
needs of industry.

Methodology:

After
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 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 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 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 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.

 

Results:

Along 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 highly
direct reflection in the consumer market also. There has 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 corporates have started
to ensure that they maintain a good “sustainable supply chain management
system”.

It defines social
and environmental standards
Ensure that the
business practices are sustainable
Involvement of
strategic planning
Monitoring 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 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, 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 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
of soybeans.

·      
Have information passed on among the agro and
food industries.

·      
Ensuring that proper funds are created for the
soybeans production for producer’s increase in socio-economic status.

·      
Continuous evaluation of all social conditions
prevailing and ensure the cooperation among the industries, producers and
consumers.

Conclusion

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 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. So any company should involve in total quality
management to handle the process and the its risks.

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