Here's a quote that many of us can relate to: “Adversity doesn’t build character, it reveals it.”

Over the past 18 months, individuals, families and businesses have faced more than their fair share of adversity, attributed mostly to the recession and its related hardships. More relevant for this blog has been the strain put on the supply chain and the buyer-supplier relationship. This couldn’t be more apparent than in the case of Chrysler according to a recent BusinessWeek story.

During the recession, demand was down significantly for vehicles, and thus, treating suppliers with courtesy (e.g. paying bills on time) wasn’t high on Chrysler’s priority list. Put simply, suppliers were limited in buyers they could sell to, and buyers—in this case, Chrysler—weren’t nice about it. The automaker itself was struggling with declining market share and a tarnished brand. Suppliers, of course, faced their own troubles with many...

Over the past two years, the term “green supply chain” or variations of it has been used widely in the industry. Many companies have talked up the benefits of an environmentally beneficial supply chain, but my guess is that it’s been more talk than actual execution. Not that I couldn’t come up with a list of reasons why the green supply chain exists more in colorful brochures and web site banners. Most notably, the recession shuffled priorities for companies, many of which were struggling just to survive.

Another really comes down to willingness. You’re thinking “Who wouldn’t want to do something that preserves the environment?” If only it were that simple…

Outside of the obvious such as money and resources, collaboration and cooperation may be what’s holding back the green in supply chains. Consider this, a well-intentioned company may be gung ho about greening its operations, but it’s a considerably more difficult when it comes to getting partners,...

Over the past few months, universal health care has been a polarizing topic of discussion. Depending on who you ask, the newly passed legislation will either provide the low-cost coverage to almost every American, or it will mean more taxes and the demise of overwhelmed companies. One of the main arguments for health care reform is to negate the out-of-control medical costs that are bankrupting patients and hindering struggling hospitals.

A recent survey of 100 hospital supply executives conducted by VHA provides some food for thought as to what could be driving up health care costs—inventory or specifically, missing inventory. Most notably, patients take items (inadvertently or not) such as pillows and linens home when they leave the hospital to the tune of $52 million a year. Towels, pillows, bed linens, phones and surgical scrubs top the list of most commonly taken items, and nearly two-thirds (64 percent) of hospitals reported that patients and/or family members...

Risks to the supply chain, most of which are uncontrollable, surround us every day. But what about the events we can control, specifically those involving those we choose to do business with—our partners? From a marketing and public relations standpoint, businesses tend to spend a significant amount of resources to shape and refine their image to the outside world. Whether in the form of the written word or through impactful images, businesses can readily make or break their credibility.

But businesses seem inclined to skimp a bit when it comes to the supply chain, and that’s where credibility can easily be damaged through the actions of partners. A well-known example are the Blood Diamonds in Sierra Leone used to fund bloodshed in that country’s civil war. The diamond industry has taken a fair share of lumps over the years for its ignorance, apathy or both. Recently, Apple has had to deal with child labor abuses in overseas factories where iPhones are manufactured....

I think many of us both rely on the government as the primary enforcer of laws and regulations especially when it pertains to the food supply. When purchasing something that states boldly “Sugar Free” or “Organic”, I think most take those words at face value. Of course, those of us who are natural born or learned cynics will tell you otherwise.

Over the years, the FDA has taken its knocks for questionable drug approvals, while the USDA has been taken to task for how it handles food recalls. The latest report concerns the lack of oversight from the USDA in monitoring food items. Basically, companies that improperly market their foods as organic face little or repercussions from the USDA. As a consumer, it can be disheartening to hear this kind of news. Besides the extra money wasted on supposedly organic (and more expensive) goods, the health benefits are also missing.

The lesson for supply chain managers: never rely on others for what you can...