Problem of the U.S. Milk Supply Chain - Case Study Example

the company had an obligation to find any defects before the production process started. In this case, I think that the ice cream company and milk supplier should be held jointly liable; the first for not identifying the defect and the latter for supplying a product that was unsafe and harmful to consumers.

I think that a CRM system could have been helpful to communicate regarding issues in the supply chain. It seemed like there was no connection between milking stations and big dairy companies. A CRM system would have figured out where the problems were occurring and then quickly find a way to resolve those problems. Customers are a big part of this system, and their opinions could have been sought out much sooner regarding milk quality. A company could use a CRM system to perform damage control by informing consumers immediately when a problem crops up and also helping to prevent confusion. Communication with customers is very important because otherwise some rumors can be formed and they may potentially have a damaging effect on the company. The best option is just to be open and honest about a problem whenever one is identified.

No, I don't agree with the decision of the Chinese court because I think that the punishment is a little over the top. I feel like this is more for a show and will do nothing to stop the actual problem. It would be better if greater regulation was introduced into the Chinese dairy industry so that something like this does not happen again. I think that the middlemen and dairy boss should have faced some kind of punishment, but not as severe as was metered out to them. I don't think that the United States should implement similar laws because I feel that the current laws are enough to deter this kind of behavior.

In the long run, as companies use Chinese suppliers, one of two things will happen: either Chinese suppliers will need to improve raw materials and manufacturing processes, or U.S. companies will take their business somewhere else. Already China is proving to be expensive when it comes to outsourcing, and there are many other countries in the region (Bangladesh, Vietnam, and many more) that would be more than willing to enter into agreements with large U.S. corporations. If the problems continue for too long, China will develop a bad reputation and it will ultimately affect the U.S. company because consumers will boycott those products.