WisBusiness: Supply-chain management key to handling recalls

A company’s reputation and brand are priceless.

So says Tom Kozenski, vice president of product strategy – distribution solutions at Waukesha-based RedPrairie. Which why recent recalls – some of them huge – of tainted products from China have him hopping.  

Kozenski, who has worked in the logistics field for nearly four decades, said companies that cannot control the qualify of – or properly trace – products could be in big trouble.

RedPrairie provides supply chain software that helps retailers, manufacturers and suppliers to manage recalls efficiently and accurately. Today, six out of the top 10 food and beverage companies and 11 of the top 20 global retailers use the firm’s supply chain software.

WisBusiness.com editor Brian Clark spoke with Kozenski recently. Here’s an excerpt from the interview:

Clark: In light of the recent Chinese recalls of everything from tainted toothpaste to tires to seafood to pet food to toys, do you think some companies are having second thoughts about outsourcing?

Kozenski: Absolutely. Companies that are using outside manufacturing are rethinking their quality strategy because you cannot outsource your name or your brand. You are accountable. Now that the government is trying to get its hands around this, there will be more controls.

Clark: Do you thing the Chinese government will be cracking down?

Kozenski: Yes, to some extent. They are beginning to take action on quality issues.

Clark: Will that be enough to restore confidence in American consumers?

Kozenski: My thought goes back to what I said earlier that the companies are responsible for their brand and name. So if they decide to outsource, they are accountable for the quality of their outsourced manufacturers.