Global trade will hurt if the absolute good of local supply gains widespread acceptance. A strategy...
By Ryan Skinner (email)
No one knows where anything comes from anymore. The best bet is China, of course. Looking for a new microwave oven recently, I asked the sales attendant where three models were manufactured. He couldn't find out in the chain's ERP system, or on the packaging. It wasn't until I bought one and got it home that I saw it, sure enough: Made in PRC.
People want to know where things come from. Two examples:
1) A Norwegian power supplier recently aired a new, funky commercial that gives a metaphysical, soft interpretation to where its power comes from.
2) Newspapers worldwide recently carried a popular story describing how Sweden has introduced carbon labelling on consumer products. Now buyers can see how much carbon goes into making things.
People want to know where things come from. It's a lesson for anyone in shipping, or global trade.
Working for a major telecommunications company some years back, I covered a story on how RFID tags were being used to track inventories in complex logistics systems. In other words, I understood that things, down to all their essential components, can in fact be tracked.
It wouldn't take a genius ERP company to develop an "open source manufacturing" solution, which allows consumers to track down not only the precise source of their product, but all of its constituent parts down to where the raw materials were mined, extracted and refined.
And this is no pie-in-the-sky idealism. Another client of ours is conducting HSE surveys of all of its suppliers worldwide. It's not only a sound working practice; it's protecting yourself from liability. Just ask Nike and Mattel - two companies noticeably burned by bad practices in their supply chain.
This information should be turned over to consumers. Yes, you'll expose that carefully developed supply chain to competitors' scrutiny. But, is that so bad? I mean, if your competitive edge is using a supplier no one else knows about, don't you have bigger problems?
Give people the ability to track products back to the source. People want to know where things come from.
Anybody who knows of a company that offers this kind of thing, please share, or leave a comment.