Yum Brands Inc’s and Mcdonald’s food safety scare
Yum Brands Inc and McDonald’s Corp were forced to issue public apologies this week to customers in China, following reports of a food safety scandal.
Regulators in China were forced to close Shanghai Husi Food Co Ltd, the company which supplies Yum Brands Inc and Mcdonalds, after a television segment revealed employees mixing meat past its expiry date with fresh meat, as well as using contaminated meat.
Both companies have since reported that they ceased using the supplier, following the revelations, and had changed to new ones.
Shares fell by 4.2 percent for Yum and by 1.5 percent for Mcdonald’s.
To read more, click here.
Another UK supply chain controversy looms
The results of a recent survey conducted by the Chartered Institute of Purchasing and Supply (CIPS), have unveiled that up to 80 per cent of UK supply chain professionals are unable to assure that their supply chains are free from misconduct.
The results imply that the UK could be headed for another supply chain crisis, in a similar vein to the horse meat scandal that rocked Europe last year. Furthermore, despite this being a recent memory, over half of those surveyed do not believe supply chain risk is being taken more seriously compared to when the scandal made headlines.
11 per cent of business leaders also reported that they suspected that their supply chains contained modern slavery.
To read more, click here.
FedEx will fight U.S. authorities‘ charges
The American Justice Department (DoJ) has given FedEx a 15-count indictment. The charges have been several years in the making, and include allegations that the international delivery service has been shipping controlled substances and mislabeled pharmaceuticals from illegal online pharmacies, and to persons who would otherwise have no medical reason to have access to them. Furthermore, the delivery company has largely ignored warnings from US authorities for several years. If found guilty, FedEx could be fined up to $1.6 billion.
The Tennessee based company has however declared it intends to challenge the charges.
To read more, click here.
Have a nice weekend!
