Dyson, a high-tech home appliance maker, has cut ties with Malaysian supplier ATA IMS Bhd following an audit of the company's labour practices and allegations by a whistleblower. ATA is already under US investigation over forced labour allegations. Dyson has terminated its contracts and is in talks with its customer over the audit findings. ATA, which produces parts for Dyson's vacuum cleaners and air purifiers, tumbled 30% to its lowest since April 2020. The termination is a significant blow for Malaysia, a major electronics manufacturing hub, which has faced scrutiny this year over claims of abusive working and living conditions. Dyson terminated the relationship with six months' contractual notice, hoping it would give ATA the impetus to improve and enable an orderly withdrawal in the interests of the workers they employ. Former ATA worker Dhan Kumar Limbu was beaten by police in Malaysia after sharing information about conditions at the factory with activists. ATA denied all allegations by workers and declined to comment. The company has taken steps to engage Dyson and advisers after being notified of the summary of the labour audit. It will continue to manufacture and supply for Dyson until June 1, 2022, and its board is looking into the validity of Dyson's termination notice. ATA has denied allegations of forced labour at its factories after a prominent rights activist said U.S. authorities would scrutinize the company's work practices. Over half of ATA's 8,032 employees are foreigners. Activist Hall has called for Dyson to remediate workers at ATA IMS Berhad (ATA) and the Malaysian government to bear some responsibility for the termination of its relationship with the company. Dyson is terminating all three ATA contracts, including the contract manufacturing agreement between Dyson Operations and ATAIM, the agreement for the supply of goods and services between Dyson Manufacturing and ATAIM, and the framework agreement for the supply of goods (tooling) between Dyson Manufacturing and ATAIM. The Malaysian labour department has not responded to a request for comment. My question is: Regular supplier audit and evaluation/appraisal is part and parcel of outsourcing supplier management. Dyson had undertaken “multiple prior audits it said had not found any issues involved in its supply chain”. From the article above, what is your view on the "foreign labour exploitation" and “debt bondage” issues. Hint: Are these recent developments? Help me to Examine the following: • Dyson’s execution of supplier audit and evaluation/appraisal process • The likely reasons why Dyson’s multiple prior audits (throughout the year) had not uncovered any lapses and non-compliance issues. State your assumptions, if any

Dyson, a high-tech home appliance maker, has cut ties with Malaysian supplier ATA IMS Bhd following an audit of the company's labour practices and allegations by a whistleblower. ATA is already under US investigation over forced labour allegations. Dyson has terminated its contracts and is in talks with its customer over the audit findings. ATA, which produces parts for Dyson's vacuum cleaners and air purifiers, tumbled 30% to its lowest since April 2020. The termination is a significant blow for Malaysia, a major electronics manufacturing hub, which has faced scrutiny this year over claims of abusive working and living conditions. Dyson terminated the relationship with six months' contractual notice, hoping it would give ATA the impetus to improve and enable an orderly withdrawal in the interests of the workers they employ. Former ATA worker Dhan Kumar Limbu was beaten by police in Malaysia after sharing information about conditions at the factory with activists. ATA denied all allegations by workers and declined to comment. The company has taken steps to engage Dyson and advisers after being notified of the summary of the labour audit. It will continue to manufacture and supply for Dyson until June 1, 2022, and its board is looking into the validity of Dyson's termination notice. ATA has denied allegations of forced labour at its factories after a prominent rights activist said U.S. authorities would scrutinize the company's work practices. Over half of ATA's 8,032 employees are foreigners. Activist Hall has called for Dyson to remediate workers at ATA IMS Berhad (ATA) and the Malaysian government to bear some responsibility for the termination of its relationship with the company. Dyson is terminating all three ATA contracts, including the contract manufacturing agreement between Dyson Operations and ATAIM, the agreement for the supply of goods and services between Dyson Manufacturing and ATAIM, and the framework agreement for the supply of goods (tooling) between Dyson Manufacturing and ATAIM. The Malaysian labour department has not responded to a request for comment. My question is: Regular supplier audit and evaluation/appraisal is part and parcel of outsourcing supplier management. Dyson had undertaken “multiple prior audits it said had not found any issues involved in its supply chain”. From the article above, what is your view on the "foreign labour exploitation" and “debt bondage” issues. Hint: Are these recent developments? Help me to Examine the following: • Dyson’s execution of supplier audit and evaluation/appraisal process • The likely reasons why Dyson’s multiple prior audits (throughout the year) had not uncovered any lapses and non-compliance issues. State your assumptions, if any

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

ChapterC: Cases

Section: Chapter Questions

Problem 1.6A: Avion, Inc. Susan Dey and Bill Mifflin, procurement managers at Avion, Inc., sat across from each...

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