@Risk

Nearly half (45 percent) of the supply chain professionals recently surveyed by global logistics firm BDP International and its Centrx consulting unit indicated they are supporting their internal regulatory compliance departments with external resources. Not surprisingly, the need for supplemental compliance services was especially pronounced for companies with under $1 billion in annual revenues and for those doing business in emerging markets.

Growing concerns over environmental and safety issues have created a complicated tangle of trade and security programs that now impact importers, exporters and essentially, all stages of product manufacture and distribution. Compliance with new regulations such as the EU REACH and U.S. Importer’s Security Filing 10+2 programs can be both complex and costly, and findings from the survey suggest that companies typically deal with product-related regulations such as registration, labeling and marked, themselves, while outsourcing compliance for product  movement.

Here are a few more survey results I found particularly intriguing: Continue Reading »

A new study by a former U.S. Food and Drug Administration (FDA) economist estimates that the total annual health-related costs of foodborne illness across the nation is $152 billion annually – four times that of earlier estimates calculated by the U.S. Department of Agriculture.

This total is based on an FDA cost-estimate approach: health-related costs are the sum of medical costs (physician services, pharmaceuticals, and hospital costs) and losses to quality of life (lost life expectancy, pain and suffering, and functional disability). It includes the costs of medical bills, lost wages and lost productivity. (Note: These are health-related costs only. An aggregate economic impact total that included losses to food manufacturers and distributors involved in recalls would be significantly higher.)
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This blog is devoted to building awareness about the importance of effective, holistic supplier risk management programs. So, every now and again, I have to ask:

Do you feel your company’s supply risk management strategies are providing the value they should? Is managing supplier risk a strategic advantage for you, or is it more just a box to be checked for compliance requirements? And, in terms of supply risk management, where do you think your company stands compared to its peers?

Aravo and The Hackett Group have been working for awhile on a new survey designed to help you gain insights into questions like these,  and I’m happy to report that our co-sponsored Supply Risk Management Performance Study is now open for participation.

This study will run until April 2, 2010 and is available at no cost to participants.

We’re looking for supply risk stakeholders –in procurement, supply chain, risk management, EH&S, or general management –to take part. All study participants will receive a research report and an exclusive invitation to a webcast that will discuss key findings from the research. It’s a great way to learn: Continue Reading »

For Toyota, the bad news just keeps coming.

Now, ABC News is reporting that U.S. regulators are reviewing more than 60 complaints that the fixes made on Toyota cars recalled for unintended acceleration have not solved the problem.

Toyota says a partial review of these complaints has found no evidence of failure in the electronic throttle system or in the repairs. The company also says it hasn’t found problems in the brake override system.

Still, there’s no doubt that news like this is making a very bad situation even worse.  As Toyota technology chief Takeshi Uchiyamada told ABC News, “The Toyota brand is in a deep crisis.”

How did we get to this point, where long-revered Toyota supply chain management strategies are now a cautionary tale? What lessons can be learned from this devastating series of global safety-related recalls? Continue Reading »

Earlier this week, in keeping with the Obama administration’s renewed commitment to transparency, White House Cybersecurity Coordinator Howard Schmidt directed the release of a summary description of the largely classified Comprehensive National Cybersecurity Initiative.

(This initiative, officially known as the National Security Presidential Directive 54 and Homeland Security Presidential Directive 23, was originally established by the Bush administration back in January 2008.)

The five-page declassified document outlines twelve major proposals designed to help secure the United States in cyberspace, and it’s significant that among this list of a dozen priorities there’s recognition of the growing risks associated with today’s complex global supply chains, particularly those in the commercial information and communications technology marketplace.

From the summary description: Continue Reading »