Chinese Products Ethics Case

1724 Words7 Pages
1. Identify all of the channel organization types involved in these matters. Comment, what could each of them have done, if anything, to have prevented the problems that arose. The process of a product recall can involve a lot of different types of channel organizations. It doesn’t just affect the organization that is issuing the product recall but also the whole supply chain including their suppliers, manufacturers, their distribution centre and their retailers or wholesalers. The organization purchases raw materials needed for their production process from their suppliers. The supplier should make sure they are operating in full compliance with the rules and regulations in the country in which they operate as well as the country in which its customer (the organization) operates in. Ensuring that all raw materials being supplied to its customers conform with each and every one of the laws and are of top quality is an attempt to avoid events such as product recalls to occur. Once raw materials have been purchased, it is then shipped to the organization’s manufacturing company to produce the final product. The cause of most product recalls is a manufacturing defect. Some steps the manufacturer could take to preclude a product recall might include a higher and more efficient quality control and inspection mechanism. Some companies need to raise their quality control level on their manufacturing processes to ensure high quality products are produced. The manufacturer could reserve the right to make periodic unannounced inspections of their supplier’s facilities to ensure the suppliers’ compliance with the standards set out by the organization as well as with the rules and regulations of the country. This would result in suppliers being more aware and concerned about their performance level causing them to constantly raise their quality control. The manufacturing
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