Developing Technology Strategies for Reverse Logistics

          Reverse logistics management focuses on the movement of a returned product to recapture value by quickly making decisions on how the product will be managed and re-enter the supply stream.  Strategic planning to implement technology that will tightly control inventory, manage returns, develop a competitive advantage, while minimizing operational costs is the challenge.  “Today’s Enterprise Resource Planning (ERP) systems have outpaced organizational readiness for product recalls” (Persaud, 2012). 

A reverse logistics information system must be flexible. Unlike forward logistics, reverse logistics will touch upon more areas throughout the supply chain.  When developing automated technology to capture information, it is critical to consider how that information will be used and how it will benefit or impact different organizations.  Early efforts in tracking returns were simplified, often to the cost and capabilities of technology.  At one point of sale there may have been a sticker system in place identifying returns to go to the vendor, returns for salvage, or returns for disposition.  With the lower cost of technology and increased capacity to manage data, an organization can truly reap benefits to reduce costs associated with returns.

Companies often overlook returns management in developing a technological and communication plan.  By examining the organization’s existing return program, a strategic plan can be implemented achieving their specific goals to manage, improve upon, and reduce cost of managing returns, excess or obsolete goods.  If a recall were to occur, how would an organization identify where the product is?  If a retailer was receiving and inordinate amount of returns, how could they reduce those returns?  If a repair facility wanted to improve customer service, how could they plan their operations to reduce response time?

Recall Management

Tight controls over inventory, developing a tracking system to identify where a product has been throughout the supply chain most sensitive when a recall is initiated as a result of public safety or health concerns.  A company must effectively identify defective products to limit the financial impacts and liabilities that may be associated in the return process.  Integrating return or recall activities into a business strategy is the most effective way to create a plan that captures the data required that can quickly identity where a product is at any given time.  Developing strategic commitment by sharing responsibility throughout the supply chain is the most effective supply chain management.  The components in a product can be handles by multiple people throughout the supply chain from procurement of raw material, manufacture, and distribution.  This number increases when handling import or export goods.

Developing cooperation throughout the supply chain, data gathered could identify procurement, distribution, or collection strategies that could limit the impact of recall.  By capturing data that could ultimately identify low quality, or potential risks in the distribution of product. 

Service providers are beginning to look at recall management tools, to reign in active customers.  In a case study (Stone, u.d.) discussed a dental office managing patient files, educating patients on the necessity of the annual screening, as well as carefully recording inventory used in the event of a manufacturer recall to notify patients quickly who came in contact with the product.  The recall system for health service providers is designed to reduces lost revenue, increases quality of care, and limit liability in the event of a product recall.  The commitment to capturing data into the system was critical to developing and managing patient relationships.  The study determined that many patients do not return for the annual recall visits because it is commonly referred to as a cleaning that offered no value as patients considered they clean their teeth daily and do not require the service.  By capturing detailed data and using an automation system to generate consistent messages in the patient billing, reminder notices, phone calls, and any other communication system to include a specific reason for the visit increased response and quality of care.  The data captured can help the patient realize that the “cleaning”  will entail checking on specific fillings, evaluate the amount of bleeding, perform oral cancer screenings, or other specific care issues captured by the database.  As patient retention increases, management is able to determine hiring needs.  Often the hiring practices have been based on scheduling during the busiest times leaving periods throughout the year where staff is paid and little revenue is generated.  “Many offices do not know how much hygiene time they need” (Stone, u.d.).  The database system can help the office determine when hiring additional staff, is appropriate as the patient base grows.

Returns Management

The options to handle a return are limitless and can include liquidation, donation, resell auctions, private resale, and destruction.  Each option presents its own unique set of circumstances that an organization will need to examine to establish parameters to automate technology to expedite returns re-entering the supply chain.  Risks to consider might be quality control of repairs to protect the brand and perceived values of the branch.  Donations can be costly depending on an organizations tax strategies and could potentially increase operating costs. 

Setting up decision trees to maximize recovery and identify trends that can be mitigated.  “Making the right choices requires the ability to define the expected outcome, use the correct technique or combinations of the techniques for each situation, then deliver the results” (Returns Management Inc., n.d.).  By capturing data consistently that identifies who is returning the product and the reason for return, a company can easily identify opportunities for improvement. 

Is the return valid?  Nintendo faced a return rate that appeared to be higher than normal.  Nintendo had concern that some of the returns were outside the warrantee period and that consumers were registering products when there was a malfunction.  Nintendo responded to challenge of gaining better control of returns by encouraged retailers to register the merchandise at the point of sale by developing a bar code.  The process was facilitated by easily scanning a barcode on outside of the box at the point of sale.  The retailer was enticed to train staff to comply by offering a $.50 rebate for each registration they completed.  The new data supplied let retailers know whether or not the product was still in warrantee at the time of the return. “After implementing this system, Nintendo experienced an eighty percent drop in return rates” (Rogers & Tibben-Lembke, 1999)

Keeping control over inventory, managing assets, and developing communication and technology plans to manage inventory will reduce the financial impacts of returns management.  It is just as important to identify the reason for the return as well as analyzing how to handle the return.  In planning automated systems to capture information, the return should be taken one step back in the supply chain to re-introduce the produce to the supply chain recapturing value.  “A key to successful returns management is an asset recovery program that reduces losses or even generates revenue” (Biederman, 2006). 

LL Bean is an industry example of controlling returns, managing customer relationships, as well as protecting the LL Bean brand through vendor management because the organization has a consistent process in place to capturing the reason for return.   By capturing return reasons data could potentially identity the need to re-design a product, packaging, or include a simpler way to disassemble a product for easy replacement of parts that are known to wear out.  If there are a significant number of returns as a result of poor quality, a trend could be identified indicating the manufacturer is not meeting the organizational standards. 

Consider the quickest path to re-introducing a return to the supply chain.  An organization may want to implement a support desk to identify the concern.  If a consumer bought an all-in-one printer, scanner, fax, and copier and the scanner was not working, how could data is captured to eliminate that return?  A customer support center identifying the problem and capturing data would benefit reducing the number of support calls or returns.  As customer service troubleshoots the problem, data could be captured identifying the solutions which work.  Once the problem is identified, management can examine the data determining the need for call and may uncover confusion in the instruction manual which would require clarification, or possibly a need to improve the drivers for the unit to be updated. 

Repair Facilities

“A number of decisions including return collection center locations, mode of transportation to be used, control systems, and just-in-time policies, will not only influence the forward logistics network, but also the reverse logistics network” (Madaan & Wadhwa, 2007).

To reduce repair time, tight control and adherence to processes and maintenance of an inventory system should be consistent.  Maintain tight control, inventory samplings and mini-audits conducted at regular intervals will ensure control over inventory is maintained ultimately reducing costs associated with excess stock as well as increasing the quality and efficiency of the facility.  In a case study, the military identified exposure to counterfeit parts that infiltrated the supply chain which has “threatened National security, the safety of our troops, and American jobs” (Shaughnessy, 2012).  The problem America faced could not solely be blamed on the Chinese for the manufacture of substandard parts, but could be traced to a continued lack of consistency with inventory control and accountability.  Different organizations within the military have different levels of commitment surrounding inventory maintenance and control.  Property accountability managers often spend a significant amount of time trying to obtain accurate paperwork, records, and facilitating reconciliations.  Without commitment and support from the top levels encouraging compliance with the process and clearly communicating the goals for tight inventory control, frustration and resistance could work against the effort leading to gaps filled with low inventory, excess inventory, error, damage, theft, loss or the opportunity for counterfeit parts and substandard quality of the repair.  Although the military manages a database for tracking and accountability of equipment that is consistent, the processes in managing and capturing data as well as identifying location of the equipment are not.  Some military units may have bar code scanners while others will manage inventory manually with pen/paper and checking items off from a master report.  An organization overseeing a repair facilities across many different business divisions, must think about planning operations to eliminate inconsistencies and implement automation that will focus on decreasing the time a product is not operational. 

By establishing organizational objectives and an acceptable wait time for a repair, data can be used to identify customer clusters to optimize location and warehouse of repair personnel.  Data can also help anticipate and plan for common repairs, coordinating physical parts and labor to expedite the process and increase customer service.  Amini, Retzkaff-Roberts, and Bienstock (2005) conducted a study involving the planning, design, and implementation of medical laboratory devices.  The company identified parameters for repair to minimize risk to the laboratory guaranteeing a six hour turn around on repairs for most customers with exceptions being those in remote areas making compliance with the standard economically unsound or impossible. The company designed a self-diagnostic tool in the equipment that would expedite the process.  The tool would determine the cause for the repair reducing down-time. 

Controlling inventory data as well as dispatch data were the two challenging parts to coordinate to meet the six hour repair window.  By identifying common repairs, managing inventory and storage of parts decisions were made as to what parts could be stored at a customer site, warehouse, or repair technician’s vehicle.  The data was taken apart and examined using many “what if” scenarios valuating costs and identifying an optimal path to gain the most value for the least expense. 

Conclusion

Strategically planning what information to capture can enable an organization to more effectively manage operations.  In a reverse logistics process, drilling down data will help identify key challenges to improve efficiencies in the organization.  The ability to reorganize data, take it apart, and look at it from a different perspective can also prove effective in increasing operational effectiveness.

Good data management and the commitment to follow the processes in collecting data will identify opportunities in any organization to increase revenue, manage returns, and determine how a return can be managed to maximize recaptured values.

References

Amini, M., Retzlaffroberts, D., & Bienstock, C. (2005). Designing a reverse logistics operation for short cycle time repair services. International Journal of Production Economics, 96(3), 367-380. doi: 10.1016/j.ijpe.2004.05.010

Beiderman, D. (2006). Planning for happy returns. Traffic World, 18-21. doi: 195733704

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Bewster, P. (2011). Johnson & Johnson and the "phantom" recall: Practical advice to prevent risk management and quality systems from failing to identify and address sentinel events. The Heath Lawyer, 23(6), 1-12. doi: 887099742

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DeBrito, M. P. (2003). Managing reverse logistics or reverse logistics management? (Master's thesis, Erasmus Research Institute of Management). Erasmus Research Institute.

Madaan, J., & Wadhwa, S. (2007). Flexible process planning approaches for sustainable decisions in the reverse logistics system. Global Journal of Flexible Systems Management, 8(4), 1-8. Retrieved December 23, 2012.

EBSCO

Persaud, D. (2012). Your system is ready for reverse logistics. Reverse Logistics Magazine. Retrieved December 09, 2012, from http://viewer.zmags.com/publication/b00db76a#/b00db76a/24

Digital Issue 45

Rogers, D. S., & Tibben-Lembke, R. S. (1999). Going backwards: Reverse logistics trends and practices. Reno, NV: Reverse Logistics Executive Council.

Shaughnessy, L. (2012, May 22). Probe finds 'flood' of fake military parts from China in U.S. equipment. CNN Security Clearance RSS. Retrieved December 26, 2012, from http://security.blogs.cnn.com/2012/05/22/probe-finds-flood-of-fake-military-parts-from-china-in-u-s-equipment/

Stone, A. (n.d.). Recall, recare, who really cares? Hylife. Retrieved December 21, 2012, from http://www.wcdental.org/wcd_professionals/2010_annual_meeting/pdf/RecallRecareWhoReallyCaresHandouts.pdf

Effective Recall Management

The United States Food and Drug Administration (FDA) regulates may items including food, drugs, medical devices, electronics that emit radiation, as well as many other products that could potentially harm public health, safety, or cause death. The FDA enforces laws and regulations that are becoming increasingly complex challenging the food and beverage industry.  Industry leaders and professional associations are encouraged to join the process of developing government approved industry standard to protect the health and welfare of consumers.

There are many organizations across the food and beverage industry that have worked with government agencies developing policies and procedures to protect the supply chain.  Manufacturers and retail distributors are challenged when importing products although the FDA has increased their presence in foreign countries providing assistance to enhance food safety measures for foreign exporters. 

The FDA has traditionally acted in reaction to an event or loss but in recent years has changed their organization to focus on prevention by implementing “farm to table” security measures.  Manufacturers are becoming more committed to conducting self-audits to detect food contamination before a health risk or death occurs.  Recalls are now voluntarily initiated where the manufacturer can initiate action, or, the government can mandate a recall. 

Most manufacturers of food products are working in conjunction with professional associations and the FDA developing procedures that limit risk to food contamination.  Regardless the efforts an organization in the supply chain may implement, there is always the possibility of a recall whether due to a supplier issue, an internal problem, or intentional act of tampering or contamination.  Taking immediate corrective action and implementing crisis management plans will mitigate the crisis.  What are the best methods of preparing for a recall event?  Will the development of a comprehensive response plan including communications, recall processes, and technology; is it possible to minimize risk and potential liability?

Risk Management

A food recall occurs when any corrective action is taken by a company protecting consumers from contaminated or mislabeled products that could potentially bankrupt the organization.  Strategic planning to develop best practices and quality control checkpoints throughout the manufacturing process assists reducing liability.  Although a company may have liability insurance, “it will not cover the expense of product retrieval nor will it impact customer trust” (Kaletunc & Ozadali, 2012).

A company at any point throughout the supply chain should consider not only regulatory food safety requirements, but develop internal safety policies.  The primary goals of structuring a recall policy should be in place to protect consumer health, comply with existing government regulations, minimize recall costs, and rebuild brand and reputation with the public.

Maple Leaf Foods suffered a significant loss due to listeria contamination at a Toronto facility.  From the point of suspicion of contamination to Maple Leaf sending notification to distributors to stop shipping products was approximately a two month gap.  It took an additional two weeks before Maple Leaf announced a nationwide recall of three deli meats.  Two weeks later, the recall was expanded to 223 product lines.  Ultimately, there were twenty deaths and the company suffered over $250 million in damages.  “The United States faced a similar listeria crisis resulting in 15 deaths from listeria contamination that resulted with increased food safety requirements such as boiling meat or adding anti-microbial agents, however, the Canadian government did not require this process” (Stanwick & Stanwick, 2012).  By examining industry standards, a company should implement additional safety measures to reduce risk of contamination.

Maple Leaf discovered the listeria bacteria inside two automated slicing machines after they had been dismantled for extensive testing.  The machines were sanitized daily, but the bacterium was found to be growing inside the equipment beyond the reach of their sanitization process.  This identifies the need for manufacturers to seek continual process improvements identifying potential food safety gaps as well as developing cooperative and communicative relationships with vendors and suppliers creating a knowledge base for food safety and mutual profitability.

Maple Leaf struggled to manage the crisis, delayed in confirming suspicions, and had difficulty tracking contaminated foods that had already left their warehouse which contributed to the significance of the total loss.

Inventory Management and Recalls

In the event of a recall, crisis management plans should be implemented.  Distributors and suppliers should be contacted immediately to stop shipments, but developing a system to identify the location of product is critical.  Radio Frequency Identification (RFID) tagging is the most effective technology that provides efficient and accurate data.  Maintaining a controlled inventory process can limit exposure and expedite the recall process.  A manufacturing plant has an opportunity to identify critical information such as the food supplier, date the shipment was received, weight, and any other pertinent information such as temperature that will reduce the opportunity for contamination or spoilage.  As food travels from the original source throughout the manufacturing process and distribution chain, it is handled by a significant number of people before it is consumed.  There are many opportunities along the supply chain for accidental or malicious mishandling that can lead to contamination or spoilage” (Motorola, 2008).  RFID should be used to catalogue a history of the food throughout the manufacturing and distribution channels.

Customer Relationships are also critical to mitigate risk, including the retail level.  American consumers often rank convenience over price resulting in widespread contamination. If a consumer were to buy a bag of ready to eat clean and cut salad mix instead of a head of lettuce, instead of one family affected by contaminated lettuce you could potentially have a food contamination illness in epidemic proportions. Recordkeeping is critical throughout the supply chain. 

The Importance of Documenting

Formally documenting a recall plan is critical to establishing commitment and adoption of the agreed processes and procedures to mitigate risk and initiate a recall claim. “Effective risk management requires documented policies and procedures that identify how a product will be handled throughout the supply chain” (Creedle, 2007).  Documentation should include the processes for quality of goods received, the manufacturing process identifying procedures for quality control testing at critical checkpoints, how complaints are handled, and what to do in the event of a recall.  By establishing corporate goals and ethical guidelines, in the event of a crisis the plans can be immediately implemented reducing loss.

By implementing and documenting a recall team identifying individuals, their roles and responsibilities in the event of a crisis will eliminate delays and confusion while reacting to an event situation.  Roles to consider while planning a team response would be “decision making, quality assurance, technical advisor, media communications, complaint investigations, contacting customers, contacting regulatory agencies, and legal counsel” (Food Software Advisor, 2012).

Documenting consumer complaints is critical in the recall process to limit risk and exposure to consumers, utilize information to improve processes or uncover critical facts, and control potential losses.  Some critical points to record would be the bar code information on the product itself identifying lot, block, expiration, and any other pertinent information from that code.  Additionally, a person investigating the complaint should document where the product was purchased, how the consumer stored and handled the product.

“Every recall plan should include a step-by-step explanation on what to do when a product needs to be recalled” (Food Software Advisor, 2012).  Developing a communication log identifying all contacts with vendors, suppliers, and any other stakeholders will be critical information for any government investigations, consumer law suits, and will provide the organization valuable data that can assist in continual process improvement initiatives.

Product Recall Training

Product recall training is a critical component to improving the recall process.  By educating staff on their roles and responsibilities throughout the organization, and identifying a recall team to take the lead will help employees manage recall efforts in their area of responsibility. 

Prevention is always preferable, but even with the best plans and controls in place there is always risk of a recall.  To prepare employees and gauge the efficacy of documented crisis management plans, a company may consider conducting mock recall training.  With a mock recall, the company will be provided an opportunity to test their plan, their inventory tracking system, communication logs, as well as the processes throughout the recall.  A mock recall can uncover deficiencies in the plans and identify opportunities to improve recall strategies. 

Conclusion

Maple Leaf food experiences significant losses greatly attributed to the lack of planning and quality control checkpoints.  The organization was forced to react to a crisis event, rather than a position of control to manage the event a limit loss.

Wegman’s food stores has a vendor management specialist that maintains vendor relationships and ensure the quality and safety of products sold.  This assists the grocer in identifying recall items as well as making business decisions pertaining to independent recalls in the event of an unconfirmed contamination, labeling, or food quality concern.  A recall coordinator is in place that initiates immediate response removing products from the shelves in retail locations and distribution centers throughout their entire footprint.  The company takes the lead by educating customer service about the recall and prepares them to respond to consumer questions or concerns.  The retailer also provides information on their company website.  If a consumer has maintained correct contact information, the customer relationship management software identifies which consumers purchased recall products and initiates an automated phone call and email with return instructions.  Automated phone calls are limited to confirmed cases of food contamination that could cause a health concern. 

A well designed and documented food recall plan must be an extension of day to day operations management.  Knowing a vendor and maintaining a relationship is critical to mitigating potential risk and improving quality of product.  Inventory management, tracking, and customer relationship management will assist in facilitating communications to expedite the recall of foods limiting both consumer health and financial.  Testing crisis management plans and training staff on their roles and responsibilities in a food safety and product recall incident will be beneficial.  Training will instill confidence and uncover deficiencies that will ensure an organization is not on acting quickly to respond to a public health incident, but to control and manage the incident limiting loss.

References

Acheson, D. W. (2012, March 26). Recalls and warning letters still high in 2011. Food Safety News. Retrieved November 21, 2012, from http://www.foodsafetynews.com/2012/03/recalls-and-warning-letters-still-high-in-2011/

Creedle, E. (2007). Bon appetit: Food recalls and illness reinforce need for better risk management. Risk Management, 54(7), 40-44. doi: 226982731

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ElMekkawy, T. Y., Hachkowski, P. A., Strong, D., & Mann, D. D. (2006). Defect analysis for quality and productivity improvements in a manufacturing system. Canadian Biosystems Engineering, 48, 7.9-7.12. Retrieved December 8, 2012, from http://www.engr.usask.ca/societies/csae/protectedpapers/c0522.pdf

FDA regulatory information. (2012, February 3). Comment on Proposed Regulations and Submit Petitions. Retrieved November 21, 2012, from http://www.fda.gov/RegulatoryInformation/Dockets/Comments/default.htm

Food Decision Software. (2012). Recall Plan Templates [Brochure]. Author. Retrieved December 8, 2012, from http://www.fooddecisionsoftware.com/recall_plan#1. Recall team

FSIS Food Recalls | USDA Food Safety and Inspection Service. (2011, October 14). FSIS Food Recalls | USDA Food Safety and Inspection Service. Retrieved November 21, 2012, from http://www.fsis.usda.gov/FACTSheets/FSIS_Food_Recalls/index.asp

Guidance for industry: Product recalls, including removals and corrections. (n.d.). U.S. Food and Drug Admininstration. Retrieved December 05, 2012, from http://www.fda.gov/Safety/Recalls/IndustryGuidance/ucm129259.htm

Kaletunc, G., & Ozadali, F. (n.d.). Ohio State University Extension Fact Sheet. Understanding the Recall Concept in the Food Industry. Retrieved December 07, 2012, from http://ohioline.osu.edu/aex-fact/0251.html

Motorola. (2008). Improving the safety of the food supply chain: The value of RFID and traceability on a growing problem [Brochure]. Author. Retrieved December 5, 2012, from https://portal.motorolasolutions.com/web/Portal/resources/docs/ngem/pdf/RFIDFS-Whitepaper-0808.pdf

Stanwick, P. A., & Stanwick, S. D. (2012). The food recall crisis at Maple Leaf foods. The Business Review, Cambridge, 19(2). doi: 1021060389

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Importance of Communicating Processes in Reverse Logistics

In the current economic climate, businesses are looking at creative ways to cut costs, without cutting value and have focused energies in developing repeat business from satisfied customers.  Companies are beginning to recognize the financial benefits of investing their resources into returns management to accomplish those goals. The most critical factors in a successful reverse logistics program include customer service, understanding and expediting movement, warehousing, decision-making and assessment, and final disposition.  Harnessing technology to create visibility with the organization will coordinate these critical components of the reverse logistics life-cycle.

Reverse Logistics examines a wide range of complex issues involved with managing excess inventory, returns, recalls or defects, and the disposal of obsolete products.  In managing reverse logistics, there are many additional steps that must be coordinated to develop a smooth flowing process that will “correlate their reverse logistics expertise and systems to positive impacts on customer service, brand equity, competitive differentiators, and profitability” (Millar, 2012).  By strategically planning returns management early in the supply chain life cycle, processes and procedures at critical points in forward logistics could ultimately reduce the workload and expense associated with managing products as they enter the reverse logistics cycle. 

Service Areas

Customer service is the most critical part of the reverse logistics process because of the constant interaction ensuring customer satisfaction.  Service areas are critical components, being a clearinghouse for information that can be used to identify new opportunities for continual process improvements across the enterprise. 

Companies have invested billions of dollars identifying why a customer does not buy a product or service.  United Parcel Service conducted a survey (2012) utilizing an on-line focus group to determine the effects of reverse logistics and the post-purchase customer experience.  The study identified that consumers are looking for retailers that offer on-line services.  Consumers are becoming more involved in researching a products and identifying the best possible terms before making a purchase.  Competitive advantage was last achieved with the birth of “free shipping” that encouraged customers to complete the sale on-line immediately, rather than wait to buy the product at a retail location.  This concept evolved into the ability for a customer to decide how soon they want the product, offering multiple shipping options including “pick up” service at a retail location.  Customers are now seeking the same flexibility and ease with the returns process.  “Retail reverse logistics is gaining consumer attention and could be the next ‘free shipping’ craze, with 42% of consumers reporting they want to see improvements in the on-line returns process” (Supply & Demand Chain Executive, 2012).

Managing customer relationships through a mixture of distinct ways to offer convenience, reliability and support is a critical differentiator to develop new organic business growth.  L.L. Bean’s early success was found with word of mouth advertising and customer satisfaction.  This was a value that was communicated consistently across the organization. “To hear that one of his [L.L.] products had failed was a genuine shock to his system” (L.L. Bean, n.d.).  That fundamental value was instilled in the corporate culture and is embraced at all service levels.  Customer service understands the meaning of ‘customer satisfaction’ while capturing critical information to expedite processing of returns.  The reason for return is captured and that information is used to begin the returns process.  Within L.L. Bean, reason codes identify how the return will be handled through the reverse logistics cycle as well as expedite shipment of replacement merchandise, or credit to the customer.  LL Bean offers reimbursement for returns, store credit and exchanges for new orders is encouraged and the entire process of completing the sales cycle simplified for the consumer increasing trust and loyalty.  More importantly, customer service identifies the reason for the return while providing superior service, help managers at appropriate destinations prepare for the return to expedite handing. 

It is critical to engage employees’ to own their position, participate and become involved in the returns management process to improve gatekeeping.  Retailers have voiced concern about service areas either being unwilling or unable to screen the returns process which identifies the need to take the decision out of their hands and rely on the return management processes to validate and manage that return.  Nintendo, a video game manufacturer, experienced an unusually high rate of returns from retailers. The manufacturer identified the high return rate as a result of consumers who were delaying registration until a problem occurred, thus extending the warrantee. The manufacturer incentivized retailers by crediting them $0.50 for each game unit registered at the point of sale resulting in an 80% decrease in returns (Tibben-Lembke, 1999).

Processes and Procedures

“Communicate how sustainability relates to the company, its products and the industry differentiating what it important from the customer and consumer points of view” (Lovins, 2012).  A company must transform the workforce, communicating the commitment to meet reverse logistics objectives identified in the decision making and assessment processes identified.  An increase of staff or investment of money into technology will not automatically guarantee increased efficiencies in managing returns. 

Developing rules, procedures, instructions, and communications that are applied consistently throughout the enterprise is critical to controlling and automating the returns process.  “The positive influence of process formalization derives from its potential to reduce work ambiguity, this reducing managerial and coordination costs, and, at the same time, increasing efficiency of operations (Genchev, 2007).  By establishing specific operational goals, a chain of command, establishing what information should identified, and how the return should be handled is the most critical component that will drive the efficiencies of the process. 

In developing the decision tree to manage returns, it is critical to understand five basic questions that are the backbone of process development.  Why the organization is receiving the product? Why is the product being returned?  What is being returned? Who is returning the product?  How will the product be returned?  By answering these open ended questions, it provide context for developing a knowledge base unique to the organization or industry and provide a framework to begin setting goals and examine opportunities for continuous improvements.

Fig 1.  Five basic dimensions of reverse logistics (deBrito, 2002)

The first phase of decision making is strategic, planning for recovery where objectives are identified.  A determination is made on how the items should be recovered, and in what capacity.  This phase can begin as early as product design.  “The issues here are where to locate warehouses, re-distribution plants and so on and at the same time allowing for enough future capacity” (deBrito, 2002).

The second phase is tactical examining the integration of a reverse logistics chain.  This is how you determine how the return will be handled and managed. 

The final phase of the decision making process is the Operations Planning.  “At the operational level, we find production scheduling and control related decisions as the disassembly and reassembly operations” (deBrito, 2002).

Many retailers are negotiating returns management working with vendors to identify the most cost effective terms to manage repair of defects, replacement, or end of life actions. The longer an item remains in the distribution center, the more cost is incurred as the value of the products decline.  Once an agreement is negotiated, a plan to communicate and manage the terms of that agreement should be implemented into the standard operating procedures.  Visibility throughout the supply chain should not be neglected and the exchange of data within the supply chain should be included as part of the negotiation process.  “Companies are moving to a virtual world of contract manufacturing, a new opportunity for sustainable long term growth and competitive advantage” (Anderson, 2009).  If returns are sent to an outside entity as part of the contractual agreements without data, a company can lose the competitive advantage that comes from that information.  Losing the opportunity to identify quality issues or consumer demand could negatively impact any competitive advantages. 

QVC, Inc. contracted with Soleus International to sell 28,000 electric space heaters on a drop shipment basis.  QVC was receiving an inordinate number of consumer returns citing manufacturing defects including smoking, sparking, overheating, and flames.  The contract of sale did not provide return solutions, and QVC failed to establish clear procedures for customer service to manage consumer complaints and returns.  Frustrated consumers filed complaints with government agencies identifying manufacturing defects that caused the heaters to smoke, spark, overheat, and produce flames.  The manufacturer refused to make repairs, or provide restitution to the retailer or their customers.  QVC agreed with the governing agencies to initiate a recall, instructing consumers to snip the electrical plug containing the bar code and send it back to QVC for full refund.  QVC initiated a lawsuit to recover costs of the faulty merchandise to recover the costs associated with faulty products.  QVC received financial relief, but the cost to QVC’s reputation through poor vendor management and communications with front line customer service not necessarily recovered (QVC, Inc. v. : MJC AMERICA, LTD. : D/b/a SOLEUS INTERNATIONAL, INC., 2011). 

“Return initiation, determining the routing for the returned goods, receiving returns at the firm’s facility, selecting the disposition option, crediting the customer/supplier and analyzing and measuring reverse logistics program performance are considered multidimensional processes providing the framework for assessment” (Rogers and Tibben-Lembke, 1999).  When rules and procedures are clearly defined throughout the organization, they become knowledge based assets to manage gatekeeping challenges.  This creates visibility in the supply chain that will move the decision-making process away from service areas and place it with management to develop continual process improvements.  “For example, firms can issue pre-printed shipping labels that specify the contracted carrier(s) to take the decision out of service areas, and the exact location where the return should be set or communicate specific routing policies that cover destination, timing, carrier selection, returned product condition, etc., as agreed upon in advance with business partners” (Genchev, 2007).

Governmental Influences

Although there are laws mandating the disposal, enforcement of those laws are critical to creating deterrents.  A study conducted by the State of Oregon’s Department of Environmental Quality conducted a survey consisting of 450 businesses and 450 private residents to identify what deters businesses and individuals from violating environmental regulations.  70% of the businesses reported compliance with the laws was not motivated by fines.  The monetary penalty for non-compliance was minimal.  The key deterrents were the risk of exposure and negative publicity.  The primary concerns were “forced shut downs, environmental damage, criminal prosecution, corporate reputation, community pressure and customer pressure” (State of Oregon, u.d.).  65% of Oregon residents said they would stop doing business with companies that were not committed to the environment.

There are tremendous challenges in security surrounding forward logistics and shippers discussions have been focused identifying and mitigating risk.  Businesses should be concerned with security in reverse logistics as well.  “Forward logistics is the primary focus for shippers of all commodities, but fine-tuning the “reverse loop” is becoming more urgent as high-end companies develop new revenue streams focus on reverse logistics and after sales services” (Burnson, 2012).  There are a multitude of privacy laws in place that mandate the protection of personal identifiable information.  Shippers are mitigating risk by working with business partners developing visibility and transparency in the supply chain from point of origin to point of destination. 

Although many states have implemented strict environmental laws in place surrounding the disposal of e-waste, there has been a decline in proper disposition that is believed to be a result of the economy.  Electronics recyclers have filed bankruptcy in recent years due to the lack of work.  One of the most significant problems identified by the Environmental Protection Agency was the lack of visibility in the supply chain.  “New Jersey passed e-waste recycling laws implemented in 2011 recognizing it was impossible to identify and quantify how many devices were recycled, and how many ended up in landfills” (Siriwardane, 2009).  Employers are seeking opportunities to reduce disposal costs and have been exploring a shared responsibility approach.  Retailers and manufacturers relied heavily on local communities and townships to manage waste.  European businesses are beginning the realize that this may not be the most cost efficient way to manage disposition, seeking opportunities to collect and re-use materials, rather than buy new.  “Cross-industry consortia are also emerging where companies with a shared requirement for recycling, but without competitive clash, pool their resources to cost effectively manage their waste” (Elliot & Wright, n.d.)

Conclusion

Reverse logistics is the opportunity to develop a smooth efficient process to manage excess and waste not only recapturing values, but develop clear communications with all stakeholders to improve profitability and the customer experience. By investing a company’s resources into reverse logistics and examining the five dimensions of reverse logistics a valuable knowledge center can be created.  The knowledge center will identify the most cost effective ways to manage returns as well as help identify new opportunities to streamline and improve efficiencies. 

Having a clear written guideline once the process has been developed to identify how returns will be handled is critical.  By taking the decision out of the hands of front line sales staff and customer service personnel, their focus can remain on customer satisfaction by communicating concise and consistent information.  Setting the customer’s expectations from the start of the relationship through post-sales service is a significant component to developing customer loyalty and repeat business.  Written procedures and processes are also significant in t developing transparency between the company and their vendors, establishing clear roles and responsibilities and maintain cooperative beneficial relationships.

Although governmental influences play a role in the reverse logistics planning, companies are more concerned with how customers perceive them.  Businesses using transparency and visibility in the supply chain identifying environmentally sound or sustainable practices can use this information as an additional communication opportunity to strengthen customer loyalty, attract new business, and acquire repeat business.

References

Anderson, P. (2009, August 1). How to succeed in reverse logistics. Material Handling and Logistics. Retrieved September 5, 2012, from http://mhlnews.com/industrial-technology/reverse-logistics-returns-management-0809/index.html

Burnson, P. (2002). Strip the risk out of reverse logistics. Logistics Management, 5(6), 41-43. doi: 1022642562: Proquest

Butler, S. (2004, April 1). Reverse logistics moves forward. Supply Chain Standard. Retrieved August 17, 2012, from http://www.supplychainstandard.com/liChannelID/29/Articles/706/Reverse logistics moves forward.html

Company History. (n.d.). L.L.Bean. Retrieved from http://www.llbean.com/customerService/aboutLLBean/company_history.html

DeBrito, M. P. (2003). Managing reverse logistics or reversing logistics management. Rotterdam: Erasmus Research Institute.

Elliott, M., & Wright, J. (n.d.). The future direction of supply chain: Mastering reverse logistics. ASCET: Fulfillment & RFID. Retrieved September 19, 2012, from http://www.elupeg.com/doc/ASCET6_Reverse_wright.pdf

Genchev, S. E. (2007). Assessing reverse logistics complexity: Conceptual model, scale development, and a case study (Unpublished master's thesis). University of Oklahoma. Retrieved September 18, 2012, from http://search.proquest.com.ezproxy2.apus.edu/docview/304837833/abstract/139406DCC61316C1784/5?accountid=8289 Proquest

[Introduction]. (2004). In D. Diener (Author), Value recovery from the reverse logistics pipeline. Santa Monica, CA: RAND, Arroyo Center.

Lovins, H. (2012, February 16). Engage Your Employees, Educate Your Frontline, Increase Your Profits. Triple Pundit: People, Planet, Profit. Retrieved August 12, 2012, from http://www.triplepundit.com/2012/02/engage-employees-educate-frontline-increase-profits/

Millar, M. (2012, July 23). Logistics Executive - CEO Executive Series - July 2012. Logistics Executive - CEO Executive Series - July 2012. Retrieved September 17, 2012, from http://www.slideshare.net/DarrylJudd/logistics-executive-ceo-executive-series-july-2012

QVC, Inc. v. : MJC AMERICA, LTD. : D/b/a SOLEUS INTERNATIONAL, INC., No. 08-3830 (UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA July 18, 2011).

Tibben-Lembke, R. S. (1999). Managing returns. In D. S. Rogers (Author), Going backwards: Reverse logistics trends and practices (pp. 38-71). Reno, NV: Reverse.

United States, State of Oregon, Department of Environmental Quality. (n.d.). General Deterrence of Environmental Violation: A Peek into the Mind of the Regulated Public. Retrieved August 17, 2012, from http://www.deq.state.or.us/programs/enforcement/DeterrenceReport.pdf

Project evaluators that need to contemplate governmental influences as they consider project assets, capabilities, and constraints and how it factors into a reverse logistics program.

     Project evaluators have a critical role in the planning phase of any project to develop the key objectives, scope of work, identify the functions and methods on continuous evaluation throughout the project. This will help the project manager to maintain accountability as well as forming the basis of a knowledge center to avoid weaknesses or mistakes identify key stakeholders and roles within the project in addition to planning and scheduling workload. Project evaluation beyond the planning phase should be conducted at critical mile stones and could be completed by either internal or external sources to ensure the project is being completed on time and on budget. Evaluators weigh the financial gains or losses, as well as managing project costs throughout the program will be looking at the amount of time that will lapse before the benefits of the investment are achieved. Evaluators examine “payback periods, cash flow, and cost of any debt incurred, taxes, direct quantifiable expenses, indirect expenses, and unquantifiable costs” (Irizani, 2010).

     Governmental influences enter into nearly every project and can impact decisions. Consider that XYZ Corporation believes a team building event away from the office would increase overall employee satisfaction and productivity. Consider choice of location may be at a beach. Governmental influences to consider might be hours of operation, prohibiting alcohol, prohibiting open flames for grilling, and other regulations. Where the government has no direct impact on the corporate event, the regulations surrounding the use of the public space will ultimately affect the event.

     It is important for government regulators to examine the laws implemented to ensure compliance otherwise their might be significant consequences. Private business will not always act in the socially responsible way, especially if it may reduce profits and cause them to appear inept by shareholders seeking profits. In the financial sector, government consistently kept a database of consumer complaints regarding a wide range of unfair banking practices; however, the government would not enforce existing laws. Many consumer complaints were “overlooked” because they were not well constructed, or considered to be insignificant.  When banks were fined for violating laws, the penalties were outdated and considered insignificant in private business in comparison to the earnings resulting from questionable practices.  The government failed consumers by allowing poor business decisions by the financial industry to continue, and left it up to the individual consumer to initiate a lawsuit against the businesses for financial predatory practices.  Most of the individuals victimized did not have the financial means to hire an attorney, did not understand their rights, became frustrated deciphering which agency handled various issues, did not have an understanding of the courts system, and did not have the time to launch this type of battle.  The government negatively influenced the way banks were doing business.  The banks determined the probability of the number of consumers pursuing litigation and the costs associated with defending suits and paying fines.  If the profit margin was significant enough, the “legal fees and Federal fines were considered a standard expense of doing business” (Wytch, 2007).  Another side of the financial collapse was the way high priced lobbyists, hired by the financial industry were selected based on their relationships and influences they had with policy makers and regulatory agencies.  Lobbyists mold the regulatory system in favor of business at the expense of the consumer. .  Layard and Glaister provide an example of how governments often do not appear to be “thinking sensibly” but giving into pressures by various interest groups (1994, p.103).  Ultimately, the lack of enforcement on consumer abuses led to the collapse of the economy which should be analyzed to avoid the collapse of some other critical component affecting us globally.  Ultimately, it is “not just government that influences the way business is conducted but private business influences government policy” (Layard & Glaister, 1994. P. 101).

When weighing the options on how to approach a reverse logistics program, government influences most commonly be related to environment, health, or safety regulations.  It may be more cost efficient to outsource returns processing than to invest funds into managing assets, creating an infrastructure and buying equipment to develop capabilities to manage returns in compliance with possible laws.   Government regulations will influence the design and construct of a return facility, how materials must be handled.  As new risks are identified, new regulations are often established.  Once operations are moving forward, evaluators must continually be on alert for changes within government policy that may affect operations.

As government influences business, business influences government.  It will be the project evaluators holding the ungracious task of making ethical, socially beneficial decisions, as well as voicing public opinion to adhere to and mold public policy. 

REFERENCES

                                                                                   

Wytch, A. (2007, April 30). The collapse of the economy, whose to blame? Dig This Real.

Irani, Z. (2010). Investment evaluation within project management: An information systems perspective. The Journal of the Operational Research Society, 61(6), 917-928. doi:10.1057/jors.2010.10

Layard, R., & Glaister, S. (1994). Shadow prices and markets: Feasibility constraints. In Cost benefit analysis (Fourth ed., pp. 102-109). New York, NY: Cambridge University Press.

Improving Security Across the Supply Chain

Terrorist attacks are designed to promote fear, create publicity, and create disruption causing as much damage as possible.  Biological attacks are a credible threat historically resulting in a significant loss of life, severe injury, and long lasting health threats. After the attacks on September 11, it was no surprise to officials that anthrax was used in a biological attack while the country was still in shock.

            In February 2009, Abdallah Al-Mafisi appeared on Al Jazeer TV (Qatar) where he outlined a plot to put four pounds of anthrax in a small suitcase and carry it through the tunnels in Mexico into the United States.  He painted a picture of standing on the lawns of the White House sprinkling “confetti” that would kill 330,000 people within one hour dwarfing the effects on September 11[i].    Extremists openly admit they have scientists, chemists, and nuclear physicists with labs in North Afghanistan.  Hazbullah is known to have labs creating biological weapons in South Lebanon selling those weapons to the highest bidder. 

            Shortly after September 11, retired colonel Randall Larson passed through security at the White House.  New security measures had been implemented that detected metal, radiation, and a thorough search of personal belongings before his meeting with Vice President Cheney.  The guards questioned Larson about a gas mask in his brief case where he provided the explanation that it was intended to be used for a demonstration.  Larson passed through the checkpoint.  During the meeting to discuss the potential of biological attacks, Larson was able to produce a vial of white powder that was smuggled into the White House demonstrating that United States security forces were not prepared for a biological attack.[ii]We are fortunate that we have not faced any large scale attacks on our food supply other than small scale product tampering or accidental contaminations.  The threat is credible as both domestic and international terrorists have outwardly spoken about agro terrorism to make political statements. 

Manufactured agents could easily be introduced into livestock feed or water spreading disease.  The economic disruption could be devastating in addition to the myriad of health risks, including loss of life.  Improvements have been made including the Bioterrorism Act of 2002 requiring the registration of food facilities, prior notice of food imports, and maintenance of records to ascertain the source of an incident, and the ability for the Food and Drug Administration (FDA) to detain food if it is believed to present a health risk[iii] but this is not enough. 

The Government Accountability Office believes terrorists would attack a food source such as livestock or crops if their intent were to negatively impact the economy, terrorists would contaminate finished products to have an impact on human life”[iv] Congressional testimony in 2003 addressed concerns about disease entering the United States from foreign imports illustrating a need to strengthen imports and ensuring agents have clear authority to investigate and take preventive measures.  There was also concern that food processors were both domestically and abroad had not implemented adequate security measures throughout the supply chain.  This report also discussed security problems at animal disease research facilities where scientists, workers, and students from foreign countries had equal access to high risk pathogens without undergoing appropriate background checks. 

Although there have been improvements within government to protect the supply chain life cycle, there are still gaps in security where improvement is needed.  By examining recent improvement and identifying those gaps, recommendations can be made to strengthen security and enforcement measures to identify and minimize risk.   

Improvements and Resources to Protect the Supply Chain

Supply chain security has been defined as: 

“The application of policies, procedures, and technology to protect supply chain assets (product, facilities, equipment, information, and personnel) from theft, damage, or terrorism, and to prevent the introduction of unauthorized contraband, people, or weapons of mass destruction into the supply chain”[v].

Protection should begin at the point of origin, with transparency and procedures to protect the supply chain.  Although it is in the best interest for private industry to participate in securing their operations to limit the impact on their organization in the event of a loss, companies are not always willing to invest the time and resources required to establish and manage an ongoing safety program.  In a globalized supply chain, there are more hands on deck with opportunities for shipping delays, natural disaster, theft, and contamination of the supply that could cause significant economic or public health risks. 

There are many organizations across the food and beverage industry that have worked with government agencies developing policies and procedures to protect the supply chain.  The Food and Drug Administration (FDA) is committed to working with consumer groups to enhance best practices and mitigate risk while promoting corporate responsibility to actively participate in food safety initiatives.  Over the last several years, the FDA has increased their presence in foreign countries providing assistance to enhance food safety measures in countries that export to the United States.  Crop Life America[vi] supports growers with information on new threats, provides education on improved growing techniques, and demonstrates a commitment to protect the supply chain.  “The crop protection chemicals industry [in partnership with Crop Life America] is working in close cooperation with the Department of Homeland Security to implement the recently finalized Chemical Facility Anti-Terrorism Standards rule”[vii].  This is a regulation requiring chemical suppliers to monitor and track the sale of toxins that are toxic, explosive, or flammable.  The regulation requires that all chemicals in the possession of manufacturers and farmers identified as a potential threat be securely stored to deter theft or diversion as well as prevent against acts of sabotage or contamination.  Professional organizations and government agencies can assist businesses to develop a plan that will comply with regulation.

Government is consistently striving to improve relationships across the supply chain offering guidance and information on threats.  The FDA formalized partnerships with Cornell’s Department of Food Science and the Illinois Institute of Technology’s Institute for Food Safety and Health establishing the groundwork for industry alliances to positively impact industry in 2012.  Grants were issued to these organizations to develop training materials and distance learning programs for the safe production of food, tools for growers to conduct self audits, and serve as a network resource for the growing industry and Federal and State regulatory agencies.  The FDA has traditionally acted in reaction to an event or loss but in recent years has changed their organization to focus on prevention by implementing “farm to table” security measures. 

Gaps In Security

Although improving security and food safety is desirable, basic security measures are not always implemented and often overlooked.  Government has implemented the Food Safety Modernization Act to provide resources that will help producers identify and control critical points in their operations, however basic security and minimum requirements should be established.  As demonstrated by the escape of a cow at a New Jersey slaughterhouse[viii], perimeter fencing in this urban environment was inadequate.  Workers at the facility did not know the cow had escaped until notified by the local authorities.  The cow was easily able to escape the slaughterhouse undetected running through a heavily populated city that demonstrates the risk of an individual entering the slaughterhouse undetected to contaminate the food supply and resulting in catastrophic loss.

Transportation of food has not adequately been discussed.  Unlike other industries that regulate the transport of goods such as chemicals or pharmaceuticals, there are no requirements to establish a paper trail or maintain records on food transported.  In establishing safe transport practices preventing theft or contamination during transport, control points would need to be identified to ensure food safety.  Transportation associations have resisted government involvement claiming food safety is not at risk based on the historically low incident rate of food contamination during transport stating “there is no need for FDA involvement in the transportation of food products, unless they must be refrigerated”[ix]  Farmers and manufacturers will need to place pressure on their logistics partners to ensure they are committed to food safety and best practices.

Undocumented workers for the most part do not present a threat of terrorism, but introduce several risks that could affect public health.  Illegal immigrants create a demand for the underground production of false documentation and identities that terrorists could take advantage of by terrorist organizations.  The means used to cross the borders without detection, has already been used by terrorist cells.  The movement of toxins or disease could easily cross the borders undetected.  These workers present a health risk to the public.  They typically do not have health insurance, nor the means to pay for adequate medical care.  Health conditions often go untreated within this population bringing risk to the supply chain introducing a virus or other contaminate.  Additionally, low income families with easy access to the supply chain may become the target of a terrorist organization offering funds to introduce bio-toxins into the food or water supply.   

Recommendations

It is recommended that policies are developed cooperatively “across the enterprise and are designed end to end, including direct suppliers, critical raw material suppliers, and logistics partners”[x].   Although government can assist companies in their efforts to develop internal policies and procedures, they are not in a position to force companies to institute protective measures.  It is critical for the supplier to develop a security plan that identifies physical security features, limiting access to the public or outside sources to water supply, feed, or processing areas.  As part of the strategic plan to implement security procedures, communication across the supply chain should be an integral part of the process.  It will be critical to discuss safety measures with employees, vendors, logistics partners, and customers to ensure that all partners are committed to product safety and understand the policies and procedures established by the manufacturer.  In developing partnerships throughout the supply chain, contracts should include minimum required safeguards.  Frequent site inspections should be implemented to ensure proper safeguards and contractual obligations are being implemented

The commitment to protecting the supply chain should be embraced and discussed while implementing plans between manufacturing, logistics, and retail partners to set the expectations with all stakeholders far beyond the contract negotiation.  Ryder Trucking and hauling has demonstrated open communications across the supply chain my leading cross border security conferences to facilitate ongoing mitigation reviews and risk management in an ever changing environment.  Government agencies are often involved in conferences or other security meetings to assist businesses in identifying new risks and offer risk management suggestions. 

Government should intervene and establish a permanent solution to immigration and the risks associated with undocumented workers.  It is very difficult for some employers to find Americans who will work certain types of jobs such as dishwashers, housekeeping, farming, and general labor that may justify the hiring of a non-citizen, however, a system should be implemented that would allow an employer to legally hire foreign workers that are documented.  A system should be in place to verify the identity and eligibility for the worker.  Part of the process of documenting a worker may be the certification they are free from contagious disease to further protect the food supply.  Instituting a method to employ temporary, seasonal, or foreign workers legally will discourage undocumented workers from crossing the border and help control the underground ancillary businesses that attract terrorist groups.

Many health care providers have been establishing medical clinics in the United States to handle the growing number of uninsured workers that contribute to preventing the spread of infectious disease.  Many immigrant workers are afraid to visit the clinics because immigration officials frequently target those facilities to collect and deport those workers.  These are workers who will rent a house in a decent school district and place two or three families in the house to give their children the opportunity of education.  Untreated infectious diseases could quickly become an epidemic.

Unfortunately, not all organizations throughout the food supply chain are willing to join professional associations, or work with government to improve food quality,  safety, or transport.  Consumer demand will ultimately steer the industry forcing them to commit to food quality and safety issues whether it is through litigation in the aftermath of an incident; or through education giving consumers information understanding why they would want to make a choice to buy products that are industry approved.  Professional associations, businesses, and government entities should work towards educating consumers about food quality and the benefits of choosing food from participating association members that adhere to best practices in food safety. 

BIBLIOGRAPHY

Another 9/11 Coming? Biological Attack in the US..scary Stuff." YouTube. March 23, 2012. Accessed June 02, 2012. http://www.youtube.com/watch?v=obXAy1i5RPU.

Bautista, James. "750-pound Cow Escapes Slaughterhouse, Runs through Paterson Streets." The Record. April 10, 2012. Accessed June 8, 2012. http://www.northjersey.com/news/Cow_runs_loose_in_Paterson_after_escaping_slaughterhouse.html.

Betts, Richard K. "The New Threat of Mass Destruction." Foreign Affairs. January/February 1998. Accessed June 02, 2012. http://www.foreignaffairs.com/articles/53599/richard-k-betts/the-new-threat-of-mass-destruction.

"Emergency Preparedness and Response." Counterterrorism-Related Legislation. June 12, 2002. Accessed June 02, 2012. http://www.fda.gov/EmergencyPreparedness/Counterterrorism/BioterrorismAct/default.htm.

Enslow, Beth. "Risky Business: Tackling the Rising Supply Chain Risk Threat." Risky Business: Tackling the Rising Supply Chain Risk Threat. Accessed June 20, 2012. http://www.mmc.com/knowledgecenter/viewpoint/Tackling_the_Rising_Supply_Risk_Threat.php.

"Food Safety Modernization Act." US Food and Drug Administration. May 5, 2011. Accessed June 21, 2012. http://www.fda.gov/Food/FoodSafety/FSMA/ucm254310.htm.

Fox, Maggie. "After 9/11, Anthrax Attacks Seemed Too Natural." NationalJournal.com. September 1, 2011. Accessed June 02, 2012. http://www.nationaljournal.com/911-anniversary/after-9-11-anthrax-attacks-seemed-too-natural-20110901.

Hylton, Wil S. "Warning: There's Not Nearly Enough Of This Vaccine To Go Around." The New York Times. October 30, 2011. Accessed June 02, 2012. http://www.nytimes.com/2011/10/30/magazine/how-ready-are-we-for-bioterrorism.html?pagewanted=all.

"Industry Groups Wary of Plan from FDA on Food Transport." Review. Transport Topics, September 13, 2010. Accessed June 21, 2012. http://search.proquest.com.ezproxy1.apus.edu/docview/752000309?accountid=8289.

Kloss, David, Cheri Speier, and Dounglas M. Voss. "A Framework for Protecting Your Supply Chain." Logistics Management 47, no. 9 (September 2008). Accessed June 5, 2012. doi:197209740.

"Worker Protection Standards." Crop Protection & Pesticide Worker Safety Standards : Issues. Accessed June 21, 2012. http://www.croplifeamerica.org/pesticide-issues/worker-protection.

ENDNOTES

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[i] "Another 9/11 Coming? Biological Attack in the US..scary Stuff," YouTube, March 23, 2012, Introduction, accessed June 02, 2012, http://www.youtube.com/watch?v=obXAy1i5RPU.

[ii] Wil S. Hylton, "Warning: There's Not Nearly Enough Of This Vaccine To Go Around," The New York Times, October 30, 2011, Introduction, accessed June 02, 2012, http://www.nytimes.com/2011/10/30/magazine/how-ready-are-we-for-bioterrorism.html?pagewanted=all.

[iii] "Emergency Preparedness and Response," Counterterrorism-Related Legislation, June 12, 2002, Introduction, accessed June 02, 2012, http://www.fda.gov/EmergencyPreparedness/Counterterrorism/BioterrorismAct/default.htm.

[iv]

[v] David Kloss, Cheri Speier, and Dounglas M. Voss, "A Framework for Protecting Your Supply Chain," Logistics Management 47, no. 9 (September 2008): pg. #, accessed June 5, 2012, doi:197209740.

[vi] "Worker Protection Standards," Crop Protection & Pesticide Worker Safety Standards : Issues, section goes here, accessed June 21, 2012, http://www.croplifeamerica.org/pesticide-issues/worker-protection.

[vii] Ibid

[viii] James Bautista, "750-pound Cow Escapes Slaughterhouse, Runs through Paterson Streets," The Record, April 10, 2012, section goes here, accessed June 8, 2012, http://www.northjersey.com/news/Cow_runs_loose_in_Paterson_after_escaping_slaughterhouse.html.

[ix] "Industry Groups Wary of Plan from FDA on Food Transport," review, Transport Topics, September 13, 2010, pg. #, accessed June 21, 2012, http://search.proquest.com.ezproxy1.apus.edu/docview/752000309?accountid=8289.

[x] Beth Enslow, "Risky Business: Tackling the Rising Supply Chain Risk Threat," Risky Business: Tackling the Rising Supply Chain Risk Threat, section goes here, accessed June 20, 2012, http://www.mmc.com/knowledgecenter/viewpoint/Tackling_the_Rising_Supply_Risk_Threat.php