Albert Fong Albert Fong is offline

Last year with the terrible economy, the retail sector offered a glimpse of where everyone and everything else was. While you may not have understood GDP or the manufacturing index, you could simply go to the deserted shopping mall to get a first-hand look of the economic pit that we had dug. For those in the logistics and transportation industries, the low inventory levels, empty warehouses and disappearing suppliers signaled tough times ahead.

2010 has been better than 2009 if ever so slightly. Even with unemployment still hovering around 10% nationwide, people are beginning to spend again. If you want further proof, look at the sales figures for February, and you’ll see what I mean. Companies such as Target, Nordstrom’s and McDonald’s all report rising sales, the best in two years. In the supply chain, that means inventory levels are poised to ratchet back up again. More consumer demand means the need to have more items on hand. And with the need to stock...

Vehicle recalls continue to litter the landscape, and you’ve either become desensitized to all the announcements or worried because the vehicle is sitting in your garage as we speak. While we’re well aware of Toyota’s problems, GM and Nissan have announced their own recalls over the past week covering everything from steering wheels to internal fuel sensors. This begs the question: Where does the blame lie?

The answer depends on who you ask and to no surprise, Toyota was quick to lay blame with suppliers. I would anticipate similar responses from the others as well because it is easier to lay blame on others than be fully accountable. The fact is that companies need to assess their own internal policies because the potential problem and the resulting blame tends to be relatively nearby. When it comes to a recall of any magnitude, blame is a two-way street. These companies especially Toyota have adopted manufacturing processes that relied heavily and place responsibility...

What sickens 76 million people, causes 5,000 deaths and costs $152 billion each year? According to a report by the The Pew Charitable Trusts at Georgetown University, food-borne illnesses such as E. coli and salmonella do, and outbreaks will only get worse over time. It’s a significant problem that can impact anyone and anything regardless of size or strength. Large companies and SMBs can face major setbacks running into the millions as a result of recalls and lawsuits.

The FDA and U.S. Department of Agriculture are the primary gatekeepers along with 15 other departments that ensure the safety of the food supply. As we’ve seen, however, things are falling are through the cracks, which is why the federal government is in the midst of considering legislation to provide these departments with more tools. Other legislation such as the U.S. Food Safety Enhancement Act of 2009 (HR 2749) in the House and a similar Senate version (S510) are making their way through as well....

Developing a greener supply chain has been discussed for years, but it really didn’t gain much traction until the fuel crisis that started about 20 months ago. When fuel prices were through the roof, everyone from the supply chain to the soccer mom was in an uproar about the adverse effects on one’s well being. Rants focusing on the need for alternative fuel sources were common, and the overuse of the word “green” would’ve made any leprechaun happy.

Alas, we have short memories as the chaos gave way to a mild roar with the decline of fuel prices. Of course, we’ve used the recession as an excuse for not adopting green policies, which is why it’s noteworthy when a company such as Wal-Mart continues to expand its greenness. According to a recent article, Wal-Mart instituted a new program that would pressure its suppliers to adopt green measures within their manufacturing and packaging processes.

Is this a good thing? Long term, the benefits can be...

For the longest time, Toyota’s lean supply chain approach served as the role model for other auto manufacturers. During congressional testimony this week, financial growth clouded its priorities replacing the customer satisfaction philosophy it had followed for decades. The Economist published an article today that provides an overview of the inner workings of Toyota and what went wrong. Two words sum up the rise and fall of Toyota: trust and visibility.

Back in business school, “just in time” was a concept that was drilled into me through case studies that exemplified the economic success of Japan during the 1980s. But Toyota’s current troubles highlight not the deficiencies of the concept, but weaknesses in business judgment. Western automakers tend to source in-house or follow the lowest bidder model. Toyota and many Japanese manufacturers, on the other hand, tend to work with a select group of suppliers and rely on them as a sole source of specific components....