Introduction there was no mechanism of tracking the origin

Introduction

Designing
supply chain is a bit task. It is entirely different for different
organisations. One organisations work doesn’t work for another. While designing
supply chain, it should be efficient as well as responsive, to meet any kind of
demands. Our team exercise is about an example of commercial production of
GMO-free soybeans supply chain. Many countries are in demand 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 is to understand how the organisation managed this issue
of this supply chain and overcame from that.

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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 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.

Methodology:

 

After
the green revolution in the late 1970s, soybeans supply got the attention of
consumer organization. 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 were in demand 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 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 has to also facilitate the communication between
the partners.

 

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 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 have more social and environmental value
added to the soybean production.

·      
Have information passed on among the agro and
food industries

·      
To ensure that a social fund is created to
revert the revenues earned from sales of

soybeans back to the producers for their social
upliftment and encourage more production.

·      
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 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 risks.v

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