@Risk

Analysts are forecasting continued global economic volatility in 2012, so it makes sense for forward-thinking companies to bolster their focus on improved efficiencies and the mitigation of supply chain risks.

Recent research from IDC Manufacturing Insights confirmed that many Asia/Pacific manufacturers are doing just that. Drilling down even further, the IDC Manufacturing Insights report, Asia/Pacific Manufacturing 2012 Top 10 Predictions, concludes that in 2012 there will be greater use of predictive analytics tools among the region’s manufacturers.

Why? Because countering supply chain risks now requires better decisions at strategic and tactical levels –the kind of decisions made possible by predictive analytics, automation and enhanced supplier collaboration.

Noting that countries in the West are battling sluggish economies and high unemployment rates, IDC Manufacturing Insights also predicts that Asia/Pacific manufacturers will focus on producing goods where there is demand and growth – domestically, in the Asia/Pacific region. (more…)

Supplier collaboration is essential to supply chain risk management, and as PRTM has shown, companies that have implemented operational flexibility and collaborative initiatives are now realizing significant business benefits.

Unfortunately, though, building collaborative relationships with suppliers is often easier said than done.

Even though virtually every aspect of our work day has been transformed by Web 2.0 communication platforms, these technologies have been slow to infiltrate supply chain management. In fact, most companies today still rely on phone, fax, email and spreadsheets for collaboration with suppliers. These methods are frustrating, costly, inefficient –and perhaps worst of all, they’re risky, too.

Shouldn’t there be a better way?

At Aravo, we think there absolutely should be a better way. And that’s why this week we released Aravo Assure^TM, an innovative web-based B2B social network built to revolutionize the way businesses engage, share data and collaborate.

The concept is relatively simple . . . and long overdue. Using Aravo Assure’s^TM Enterprise 2.0 technology, trading partners are empowered with an industrial-strength collaboration platform and many-to-many communications framework designed to facilitate information exchange, while reducing the expense and administrative burden on both parties. That means Aravo Assure^TM makes it easier than ever before for suppliers and buyers to build robust, collaborative relationships –the kind of relationships that ultimately, mitigate supply chain risk. (more…)

The Food Safety Modernization Act, which was signed into law in January, requires the U.S. Food and Drug Administration (FDA) to establish at least two pilot projects: one involving produce and one involving processed foods.

Last week, the FDA announced that two pilot projects are underway.  These pilots, designed to enable both the agency and the food industry to better trace products responsible for foodborne illness outbreaks, will evaluate methods and technologies for rapid and effective tracing of foods, including:

• types of data that are useful for tracing,

• ways to connect the various points in the supply chain and

• how quickly the data is made available to the FDA.

Key stakeholder groups from industry, government and consumers will have input into the pilots, and the FDA also will make efforts to include those representing the food supply chain – from farms to restaurants and grocery stores.

After completing the pilots and gathering additional data, the agency will begin rulemaking on recordkeeping requirements for high-risk foods to facilitate tracing. Step one will be to define high-risk foods, considering such factors as: (more…)

Is your company prepared for today’s supply chain risks?

As we’ve seen over just the past few months, the global business environment is teeming with supply chain threats, ranging from key supplier financial failure and product quality or compliance issues to disruptions due to natural disasters, infrastructure failures or geo-political factors. At times, it can seem like the list is endless.

What’s more, off-shoring, emerging market sourcing and spend reduction initiatives have increased exposure –without a related increase in comprehensive closed-loop risk assessment, planning and mitigation solutions. Clearly, companies must now look beyond supplier credit ratings to understand and control their full supplier risk exposure in a single view.

What can you do to better evaluate and manage your global vendors?

For starters, tune into Aravo’s newest webinar, Identifying and Managing Supply Chain Risk, scheduled for Tuesday, September 27, 2011 at 10 am Pacific (1 pm Eastern).

During the one-hour presentation, our featured guest speaker Stephanie Moore, Vice President, Principal Analyst at Forrester Research, Inc., will discuss how you can better recognize and prepare for vendor risk in your supply chain. More specifically, you’ll learn how to: (more…)

Global production of food and other goods regulated by the US Food and Drug Administration has skyrocketed over the past decade –so much so that the distinction between domestic and imported products is now obsolete, according to Commissioner of Food and Drugs Margaret A. Hamburg, M.D.

“There has been a perfect storm – more products, more manufacturers, more countries and more access.  A dramatic change in strategy must be implemented,” she said last week, as the FDA unveiled a new strategy to meet the challenges posed by rapidly rising imports of FDA-regulated products and a complex global supply chain.

The strategy, outlined in a report called the Pathway to Global Product Safety and Quality, calls for the agency to transform the way it conducts business and to act globally in order to promote and protect the health of the nation’s consumers. For example, the FDA says it will:

• partner with its counterparts worldwide to create global coalitions of regulators focused on ensuring and improving global product safety and quality. These coalitions of regulators will develop international data information systems and networks and increase the regular and proactive sharing of data and regulatory resources across world markets.

• build in additional information gathering and analysis capabilities with an increased focus on risk analytics and information technology.

• leverage the efforts of public and private third parties and industry and allocate FDA resources based on risk.

• augment changes already set in motion. For instance, between 2007 and 2009, the FDA increased the number of foreign drug manufacturing inspections by 27 percent and has opened a series of international offices in key locations.  FDA has also collaborated with its counterparts in the European Union and Australia on drug inspections, worked to  integrate certain aspects of drug regulation via the International Conference on Harmonization and joined the Pharmaceutical Inspection Cooperation/Scheme (PIC/S) which is an organization of the drug manufacturing inspectorates from 39 countries.  The FDA and other global leaders are also creating an expanded global regulators forum for medical devices.

• broaden its food safety efforts under the FDA Food Safety Modernization Act (FSMA). This new law creates a new foods safety system, in which FDA has a legislative mandate to require comprehensive preventive controls across the food supply chain and has new tools to hold players in the supply chain responsible.  There are also new inspection mandates, including a mandate leading to the inspection of more than 19,000 foreign food facilities in the year 2016.

These new initiatives will enable the FDA to better address fundamental global shifts that are on the horizon. In particular, the agency says it is preparing for these worldwide trends: (more…)