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Cadmium Highlights Need for Supply Chain Vigilance

Posted 01-21-2010 at 11:33 AM by Albert Fong

Cadmium may be the latest shoe that falls in China. Over the past two weeks, news has surfaced about costume and children’s jewelry from China containing harmful levels of cadmium being sold at major retailers including Wal-Mart and Claire’s Stores. Cadmium is a toxic material that when ingested, inhaled or absorbed can lead to a host of problems including cancer, damaged immune systems, and birth defects.

A little history behind this…a few years ago, toys from China were found to contain high-levels of lead paint which led (no pun intended) to regulations and policies banning their export into this country. The result is that some manufacturers in China replaced one harmful material with an even more dangerous one in cadmium. It makes me wonder what they replaced metamine with in pet food, but I digress.

While the use of cadmium could easily turn into one about business ethics, it really points to the supply chain issues that would cause any U.S. executive to wake up in a cold sweat. Most of us are more familiar with food and drug-related recalls such as e.coli ground beef and expired medications (e.g. Tylenol). But, the hard facts is that even finding the source of a contamination can take weeks and months, and unfortunately, too many cases are “resolved” based on guesswork.

Last year, my CEO Jim Burleigh wrote about food traceability, and the latest issue with cadmium highlights the need for vigilance. SmartTurn VP Jim Bell is also speaking on the topic this Friday at the Traceability Interoperability Summit in Denver.

The bottom line is too many companies rely on blind faith that their supply chain partners are using and providing safe products. However, your reputation, business and customers are what suffer if anything goes wrong. This may sound pessimistic, but the next crisis is always just around the corner. Are you willing to take that gamble?

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