⛓ Links in the Supply Chain - Plan, Source, 🏭 Make, Deliver
👗 Dior and Armani 👜
Supply chains are fascinating and challenging because each link in the chain is diverse and complex. Connecting these links perfectly is often like assembling a 1,000-piece puzzle without the benefit of the picture on the box.
In global supply chains, we face additional complexities such as distance, language, time zones, and varying regulations. Today, I'll focus on the 'Make' link to highlight the magnitude of this challenge.
Since the early 1980s, most low-end production moved offshore, disconnecting many companies from the manufacturing process. Most importers buy FOB, meaning they don't own the product until it's made and at the port. Even for those active in the process, closely monitoring production thousands of miles away is extremely difficult.
This challenge has led to various initiatives:
In 2001, US Customs formed the Customs Trade Partnership Against Terrorism (CTPAT) to prevent illicit goods from entering supply chains.
In 2010, California introduced the Transparency in Supply Chain Act (CTSA) to combat human rights abuses in manufacturing.
More recently, the European Supply Chain Act (ESCA) was passed, which aims to mitigate human and environmental abuses in throughout the supply chain, including production.
These acts all share a common goal: increasing transparency in manufacturing. However, enforcement remains a significant challenge.
A recent article by the #wallstreetjournal highlights this difficulty. Luxury brands Dior and Armani are accused of using exploited labor in 🌍 Milan, Italy - not in far-flung locations like China or Bangladesh. Workers allegedly received just $57 to assemble bags retailing for $2,780.
This case demonstrates that even when production occurs closer to home, ensuring ethical practices is far from simple, let alone when it is thousands of miles away. It also raises questions about the effectiveness of current monitoring systems and the true cost of consumer goods.
While I don't have all the answers, I believe a public-private partnership may be key. Companies like #Altana, #Everstream, and #PreWave might offer technological solutions to enhance the ability of government to gain more supply chain transparency.
What are your thoughts on ensuring ethical manufacturing practices? How can we bridge the gap between a companies desire to maximize profit while ensuring their supply chains are safe, ethical, and fair?
#SupplyChain #EthicalManufacturing #LuxuryBrands #SupplyChainTransparency #Dior #Armani
