Note 7's recall and supply chain strategy

September 15, 2016

A good supply chain strategy should have a clear pecking order between strategic imperatives, and this order should be consistent with the overall strategy of the organization. Examples of strategic imperatives are 'speed to market', or 'product safety'. The role of the pecking order is to help the company remember which imperative goes first. The recent recall of Samsung's Galaxy Note 7 is evidence that 'speed to market' - at the end of the day - was given precedence over 'product safety' in this supply chain strategy. It was an expensive mistake, with an impact in the billions of dollars.