@Risk

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…)

Supply chains involve people, and that means there are always embedded risks from “the human element.”

Employees quit. They strike. Sometimes they get sick and can’t work. And occasionally, an employee who’s an integral component of your supply chain will lie, cheat and steal in a manner that could threaten your company’s entire future.

Think I’m exaggerating? I’m not. For proof, take a look at “Bribes Let Tomato Vendor Sell Tainted Food,” an article published last week in The New York Times.

In the article, reporter William Nueman reveals that federal agents have uncovered a startling, widespread scheme of corruption in the food industry. SK foods, one of the nation’s largest tomato processors, is at the center of the plot because according to federal prosecutors, SK Foods’ owner and others there offered bribes to a handful of corporate buyers in exchange for lucrative contracts and confidential information on bids submitted by competitors. (more…)

There’s a growing labor shortage in China, and analysts aren’t exactly sure why.

According to The Wall Street Journal’s blog “China Real Time Report:”

Various domestic media reports put the labor supply gap at around a million people in Guangzhou and neighboring cities such as Dongguan, legendary centers of China’s export boom in the past three decades. Numerous assembly lines and construction sites are sitting idle while anxious employers have raised salaries by more than 30% but still can’t attract enough applicants.

Shen Hong, the author of the post, suggests that at least part of the problem may stem from the fact that new-generation migrant workers aren’t interested in tough basic jobs like construction any more.  The Chinese government has reformed policies and modernized farming to such an extent that rural jobs now compete favorably with work in the city. In addition, second-tier inland cities are experiencing economic booms of their own, and workers may prefer these alternative locations simply because they’re closer to home. Lastly, China’s improved standard of living, in general, means that young workers are less apt to accept the hardships of working in the city, Hong says. (more…)

Most of the posts on this blog are focused on building awareness about the growing number of supply chain risks embedded in today’s complex and unpredictable global business environment.

This post, however, will take a slightly different tack. Rather than talk about potential problems, I’m going to highlight a solution:

Today, Aravo is launching Supplier Risk QuickStart, a software and services package to help you jumpstart a supplier risk management program.

Aravo Supplier Risk QuickStart identifies and analyzes risk for critical suppliers, and provides an expandable foundation for managing the identified threats. The solution can be implemented in 60 days or less for a fixed price of $50,000, which includes all software, services, training and support.

For example, Aravo Supplier Risk QuickStart provides: (more…)

From Toyotas and Fords to airplane seats and black pepper –it’s only February 19 and unfortunately, it already appears that 2010 is becoming the year of the recall.

Of course, that also means that supplier relationships are in the spotlight like never before. Expanding global supplier networks are under scrutiny –and for good reason. In some cases, they have proven to be unwieldy, unpredictable, and untrustworthy.

Have you taken a hard look at your own supply chain? Are you doing all you can to mitigate the possibility of key suppliers reporting misleading information, shipping sub-par products, or otherwise cutting corners in ways that could come back to haunt your business? How can you protect yourself? (more…)