Toys “R” Us and Wal-Mart announced last week that they’ll be tightening their safety requirements for toy suppliers. Both retailers will institute mandatory third party testing to safeguard against lead paint and Babies “R” Us will cut their phthalate threshold by 85%. Great moves from PR and supply chain risk perspectives. But is it enough to truly protect the companies and their customers?

This is a great example that much work remains in the supply risk management field even after the volume of headline grabbing recalls in the press has declined. In order to create the safest and strongest supply chains, retailers and consumer goods companies are ratcheting up their efforts. They had to - consumers were demanding it (and regulators weren’t far behind).

As you know, we feel strongly that increased testing is only part of the solution. In addition, companies need to accelerate efforts to:

• Set the right expectations with current and potential vendors
• Hold them accountable when mistakes are made
• And most importantly, get better visibility into what’s going on inside of their supply chains

These critical steps are certainly not new… or quick and easy. But with the speed that information travels in today’s consumer climate and ever-longer supply chains, managing risks is a business and brand protection imperative.

Kris Colby, a Director of Ariba’s Spend Management Services group, recently authored a white paper on the subject – An Ounce of Prevention: Steps Your Organization Can Take Now to Reduce the Risk of a Product Safety Incident.

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