@Risk

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: (more…)

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? (more…)

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: (more…)

For the first time since Grant Thornton began researching employment issues in its International Business Report (IBR) back in 2003, the number of businesses cutting headcount has exceeded those increasing it. In fact, Grant Thornton’s new data shows a global balance of -8 percent compared to +21 percent in 2009 – that’s a dramatic drop of 29 percentage points.

The survey, which polled more than 7,400 privately held businesses (PHBs) across 36 economies, also showed that: (more…)