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July 04, 2009

 

What do Laptop Batteries and Active Supply Management Have in Common?

By now, chances are that you've read about Sony's laptop battery debacle. European leaders Network has a good basic summary of the story of how both Dell and Apple have been forced to recall nearly $270 million (their cost) of Sony batteries. As a result of the recall, Sony's stock price plunged and their brand has suffered in the international market. But the magnitude and size of the recall should not just be blamed on Sony. Given the supposed advanced nature of supply chain management at both Apple and Dell, we should look at these vendors in a similar negative light to Sony. Indeed, they should share in the responsibility for the issue because of their delayed response. Seriously, in today's market, with proactive analysis and monitoring tools available to look at supplier performance, warranty, and service information, why did it take so long for both companies to issue the recall? The issue would have been much smaller had both buying organizations had the ability to sense and respond to supply performance related issues as they were detected, rather than waiting until the issue exploded on the world scene.

- Jason Busch

Comments
Yes, those flaming laptops are everywhere! I have a few more links in my earlier post over on SourcingInnovation at http://blog.sourcinginnovation.com/2006/08/05/flam...

Seems the vendors were aware of well over two dozen major incidents before they did anything at all. Even though I'm not a big promoter of Six Sigma (although I am writing about it over on eSourcingForum this weekend), I would think this would be a great time to be a Six Sigma Consulting Firm ... because I'd guess Sony, Apple, and Dell are in serious need of some serious six sigma best practices right about now!
# Posted By Michael Lamoureux | 8/30/06 1:29 PM
Connecting the dots seems to be one of the skills most lacking in today's business leaders (not to mention government agencies). If only the same effort that goes into handicapping sports could be applied to supply management. Perhaps the "game theory" guys who swarmed around the marketplace craze a few years back might have a solution?
# Posted By Kevin Brooks | 8/30/06 9:14 PM
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