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TERM PROJECT NAME: Aman Sharma (8697987) Devansh Chaturvedi (8700199) Jeevitha Sachithanantham (8700173) Susma Raut () Savleen Kaur (8726534) Virendra Raval () Section: 11 OPER8340 – GLOBAL SUPPLY CHAIN MANAGEMENT Submitted To: Professor Richard Tremblay Dec 13, 2020

1. a) Describe the recall situation in this example. The Canadian Food Inspection Agency (CFIA) had announced the possible E. coli contamination of raw beef products. These beef products were supplied by RydingRegency Meat Packers Ltd. which were shipped to various location inside as well as outside of Canada. Therefore, the recent shipment of beef products packed on 27 th May shipped from Ryding-Regency has been instructed to recall. b) Who are the stakeholders involved and what are their objectives? The stakeholder involved are Canadian Food Inspection Agency (CFIA) , RydingRegency Meat Packers Ltd., and all the five Department of Correction at Wisconsin . Every stakeholder involved in the process are responsible to provide the healthy meat supply to the consumer. c) How was the information communicated to stakeholders? Various public warnings were issued through media and press releases to convey the information regarding possible contaminations and warn the stakeholders about the recalled beef. The CFIA had also been updating the public regarding the development in this matter. d) Could Ryding-Regency Meat Packers Ltd. have communicated the information to stakeholders more effectively? Since this contamination issue was very serious and related to public health safety, Ryding Regency Meat Packers Ltd. should have been more concerned in communicating the information more effectively and rapidly to the concerned consumer parties. e) How? Since the contaminated meat was already shipped, the communicating this information to the stakeholders involved was of upmost importance. Ryding Meat Packers should have reached their every retailer (both domestic and international) directly through an email, a telephone call, or a letter so that they would not sell it to the public. Furthermore, they should also have published the information/warning through various media themselves to aware the public at large who had the possibility of consuming the recalled meat. 2. a) Where were the contaminated meat products produced? Ryding-Regency Slaughterhouse, 70 Glen Scarlett Rd, Toronto, Canada, was the producer of the contaminated meat products. b) Where were they shipped? Meat products domestically distributed by Ryding -Regency across Canada and exported in many countries worldwide, including Indonesia, Peoples Republic of China, United States, U.A.E, Mexico, Saudi Arabia, Hong Kong, and Singapore.

Ryding Regency shipped the contaminated meat products across Canada and five correction facilities in Wisconsin, United States, namely Racine correctional institution, Jackson correctional institution, and Racine Youthful Offender Correctional Facility. c) What are Ryding-Regency Meat Packers Ltd's shipping terms of sale? d) How were the contaminated products likely shipped to the Wisconsin correctional facilities? The road from Toronto does precisely shipment to Detroit and Rail- from Detroit to Chicago, and further by road again to the distribution center to Milwaukee, WI. Consolidated orders for the 5 correctional facilities in Wisconsin and DOC places combination demands weekly with Ryding-Regency in Toronto. As declared in the case study, Ryding-Regency ships consolidated orders by intermodal, palletized, and labeled by the correctional facility, to Chicago, IL. At that point, the intermodal trailers are offloaded and moved by truck to a distribution center in Milwaukee, WI. e) If an Incoterm(incoterm 2010) was used when shipping to the Wisconsin facilities, what might it have been, and why? If an Incoterm used, it will beI.

C.I.P- (Carriage & insurance Paid) as with all warranty coverage and guarantee of the food products in their brand, the shipment is made by Ryding-Regency as per the orders received. The company will be accountable for any changes.

II.

D.A.T- (Delivery at Terminal) Ryding-Regency's end to end scope are considered by DAT. The considerable cost, risk, and responsibility of delivering the products at the exact time taken by RR to maintain the excellent health of products.

III.

D.A.P- (Delivered at Place) Wisconsin places orders situated in the US and is responsible for the import, whereas RR is responsible for the exports of the goods. Incoterms, in such a case, seller risk is lesser than or equal to the buyer. But DAT will be the best term in such a situation because the seller bears the cost., risk, and responsibility of the goods until delivered at the named warehouse, yard, or terminal at the destination. Post, which is the responsibility transferred to the buyer. It helps RR to build trust from the buyer and decreases the risk as compared to other terms.

3. a) Describe how the procurement team at the Wisconsin DOC could have mitigated the risks associated with purchasing from a foreign producer in this situation. Possible ways for Risk Mitigation will be involved in the following,

1. Implying Incoterms - Incoterms, for instance, DAT, CIP and DAT will protect the transit risk involves in potential damage and to retain the product quality as desired by RydingRegency. 2.Inventory Management: The product will be affected by more turnaround time that involved in inventory management of goods entering the facilities and distributing further in time. 3.Insurance cover/Cost covers: Duties/Demurrage charges and the currency fluctuation charges will affect the goods being purchased. However, there are few financial tools will assist in mitigating such issues to an extent, for instance, hedging or forward cover should have been taken to prevent such charges. 4.Inspection of the delivered products: Inspection of the delivered product is very critical, and it should meet the specification and requirement. Also, the contamination will be a health hazard. 5.Fool Proof communication channels: To pass any type of communication, technology will assist in connecting to the appropriate stakeholders which will reduce the cycle time, cost and increase in efficiency. Reference – b) Describe the ethical risks associated with offshore purchasing in this situation. 1.Cost Control: Any additional unspecified costs such as extra duties, transporter’s failure, service charges of loading and unloading will be added to the overall cost of the goods being purchased. 2.Standardized Processes & Overall cycle time: The standard process of documentation, purchasing , changes in rules and regulations, modifications in transports terms and conditions, geographical hindrances will cause major difficulties in keeping up the standardized processes intact and maintain the constant cycle time of delivery. 3.Communication and use of technology: Communication channels are highly challenging in terms of documentation due to difference in culture, language, and diverse workforce. Technology challenges of one party will impact the other parties time and cost required in this process. 4.Selection of the logistics partners: Logistics partners should be reliable and efficient in transporting the goods at right time. Providing a backup plan will give an edge over others to reduce the cost associated supply chain drastically. 5.Collaborative relations between customers and Suppliers: Supplying deliveries on time, maintaining the quality of goods will assist to develop the trust with the customers.

Promptly doing payments to the suppliers and additional variation claims settlement will help in building loyalty towards Ryding-Regency. 6.Transparency & Accountability: Documents transparency and accountability of the work are the prime most conditions to make or break the supply chain relation. c) Based on the strategic importance of outsourcing/offshore suppliers, which Supplier Interaction Model best describes the relationship that exists between Ryding-Regency Meat Packers Ltd. and the Wisconsin DOC. Supplier Interaction Model:

https://www.de.kearney.com/operations-performance-transformation/article?/a/makingsupplier-relationships-work Based on the Order, product supply and the recall made for the contamination at the centers, the model at which the RR and Wisconsin DOC are operating can be considered as sustained one. The long-time supplier is supplying the product as per the orders given and taken by the Wisconsin. RR has taken the responsibility as it’s like of today. d) What should it be?

Based on the Supplier Interaction Model, the “Integrate model should be considered. e) Why? 1. It is based on multi-year, differentiated and comprehensive relationship with RR to shape the market and the relation to the next level. 2. Rules of the industry can be changed as per the requirement and the size of portfolio of food supply 3. Increase in the supply chain capabilities with quality, on time and sustainable to build the relation with Wisconsin 4.Introduction of clean teams or resources will make the transparent system and user friendly. 5.Reducing the inventory holding costs, transportation costs, forecasting the errors for every year contract with high priority on customer service will generate a new portfolio of supplies. 4. Identify and explain the processing stages that Ryding-Regency Meat Packers Ltd. Might have followed in conducting the recall. Chiefly, total responsibility for product recalls should be assigned to one senior executive (CEO, Vice president for marketing), depending on the company's size, organizational structure, and circumstances. An executive must require the development of a recall manual that details the company's policy and guidelines in a recall event. https://www.inspection.gc.ca/food-safety-for-industry/recallprocedure/eng/1535516097375/1535516168226 Step1- Mobilize a Management Team: An executive of RR should gather the supply chain management team., legal advice team, food inspection team, and quality team to plan the recall process and designate the responsibilities to the team members. It will ensure the duties of each member are in the implementation process. I.

Plan the Recall-

The assigned team should evaluate and gather documents required as per the situation for a full recall process. The team must decide on the reverse logistics methodologies, determine the announcement, and coordinate the field response program. https://store.hbr.org/product/reverse-supply-chain/f0202d?sku=F0202D-PDF-ENGb II.

Roles and responsibilities-

The expertise and knowledge come first while distributing the work; the roles have to be clearly defined. The manager should pen down the person's details with their availability

after working hours in case of emergency. Timelines for the completion of work and duties are to be drafted by the manager as well. Step2- Notify CFIA: The manager of RR shall notify the issue to CFIA recall coordinator. The coordinator should be provided with a detailed description of the case, the name of the food, brand, size, and lot code for proper identification of the product, the quality of food supplied geographical distribution of the products and the delivery details of the shipment. Step3- Identify food and locations for recall: The response team should be aware of the number of products that have to be recalled. The details such as size, brand, code, and the unique identification number of the affected products should be identified for initiating the process. Step4- Review CFIA food public recall warning: The most crucial step after identifying the spoilt product is to inform the consumers, and the CFIA usually takes this responsibility. CFIA prepares a public warning, which is verified to ensure correct information is published. After finalizing the content, they post the information to the media and on the Government of Canada's Health risk and safety and CFIA'S websites. Canada's health risk and safety Step5- Prepare distribution list and send notice: While conducting the recall, a distribution list with details of food, client information, stakeholder’s information, and the amount of food supplied to each client must be documented for a smooth recall process. After preparing a list, clients get notified through a notice, which must be drafted and reviewed by CFIA. The clients are asked for an acknowledgment after the delivery of such notices. Step6- Document verification and Coordination with Stakeholders: To ensure the recall's effectiveness, the collection and verification of proper documentation play an essential role. These documents include clients' information, warehouse details, quantities of food returned, the amount of food destroyed, canceled invoice details, etc. Once the products reach the production house by the arranged logistics, all the details will be in place. To ensure smooth delivery and avoid issues, constant communication with the truck drivers and the carrier owners is necessary. It helps to track the products and assure the product's safety until it arrives at the destination. Step7- Necessary Action to be taken on recalled food: This step includes identifying the cause of the incident that led to unsafe food and ensuring corrective actions are taken to prevent this situation in the future. Step8- Conduct Post recall review:

A meeting has to be arranged with all the team members to discuss the events such as the effectiveness of the recall, the problems faced during the process, and the improvements to be made to avoid the issues' re-occurrence. 6. a) Which mode of transport, and type of equipment, would Ryding-Regency Meat Packers Ltd. likely have used to ship products to the Wisconsin correctional facilities involved in the recall of its meat products? Ryding-Regency Meat Packers Ltd. Have used water transportation i.e. Ship and roadways transport to ship the products. The type of equipment to transport the goods will differ according to the mode of shipment as reverse logistics process is used for transportation of goods. In water transportation there are 2 types of containers utilized in a ship route shipment; FCL Full cargo container and LCL shared container to transport the product through ocean. Because the weight of the whole cargo is weighing 1275 lbs LCL shared container will be best suitable option which will also help in reducing the cost of transportation. Insulated Containers Insulated containers refer to those containers in which temperature can be controlled manually as they are provided with electronic compressor which helps in maintaining the right temperature inside the container for. Insulated containers are generally made of a vacuum bottle, like a "thermos" bottle. Which is why, they're best suited to transport perishable products or the products which are required to be stored at a particular temperature such as food items, medicines, blood, biological materials and chemicals. Ship Routes There are three ways to forward the cargo from Port of Toronto to Wisconsin which are as follows:  Chicago (USCHI)  Indianapolis (USIND)  East Saint Louis (USESL) These are located near to the Chicago (USCHI) of US. Therefore the shortest route from provincial capital to port to Chicago would be less time taking for the cargo to get to the final location. Road Routes The correctional facilities and Chicago Port are located near to each other. Therefore the Logistics can be executed by selecting following routes. Route 1 Distance between Chicago USCHI Port of US and correction facilities:  Jackson Correction Institution - 282 miles  New Lisbon Correctional Institution - 233 miles It would take approx. 4 hours of travelling by way of road transportation to link all three locations. Route 2

Distance between Chicago USCHI Port of US and correction facilities:  Milwaukee Secure Detention Facility - 105  Racine Youthful Offender Correctional Facility - 91 miles  Racine Correctional Institution - 85 miles It would take approx. 3 hours of travelling through road transport to link all four locations....