Will your suppliers blow the whistle?

Almost every large company has some kind of whistle-blowing system in place now.

Usually it’s an external company. Anonymity is usually assured.

Despite the bad reputation and poor future career path public whistle-blowers have traditionally had, firms hope that anonymous calls are better than none.

It’s one those ideas that’s hard to argue with.

Cultural change is key, of course, in persuading people to make such systems effective.

But what about the supply chain?

We all know about the well-documented problems of economically squeezed Chinese supply companies fiddling with safe formulas to cut costs and raise their wafer-thin margins.

These margins are often imposed on them by companies with stated CSR goals.

And we know about the results of quality fraud. For both product safety, consumer faith and corporate reputations. Not to mention the cost of lawsuits, particularly in the United States.

One expert on the topic believes whistle-blowing systems in suppliers may be key to spotting cost-cutting and dangerous supply chain risks.

Does your company consider encouraging or incentivising suppliers to do this?

In the long run, it might be cheaper than continually paying for product testing post production yourselves.

Here are some compelling reasons why you should think about it.

1 Comment

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