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| Featured Topic: Supplier Risk |
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The Risk Within
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| While many enterprises have invested in sophisticated supply and demand planning solutions to better manage their supply chains, they may be overlooking the the risks inherent in those very solutions. |
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| Managing Supply Chain Risk is Now Number One Priority for CPOs |
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| Combine the current economic downturn with the increasingly complex global business and regulatory environment, and it’s no surprise that businesses today are feeling more vulnerable than ever to supply chain risk. In fact, I’m hearing from a growing chorus of corporate executives who now consider supply chain risk management the number one priority for their CPOs. |
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| More Advice for Managing Supply Chain Risk |
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| Supply chain risk continues to be a hot topic among business executives –and for good reason. The current economic downturn, combined with an increasingly complex global business and regulatory environment, has created an atmosphere where most firms are feeling more vulnerable than ever to uncertainty in their supply chains. If you’d like some numbers to back up that claim, consider this: According to an Ernst & Young LLP poll conducted in January 2009, 67% of companies said they would be adversely affected if one of their top three suppliers failed. I wouldn’t be surprised if that percentage has creeped even higher now, indicating that supply chain risk is emerging as a significant top priority. |
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| Supply Chain Metrics that Measure Up |
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| With rapidly increasing competition and changing market forces, supply chain performance management (SCPM) is a critical area for consumer packaged goods (CPG) companies to help sustain and gain competitive advantage in the CPG space by enabling an agile, lean and efficient customer-oriented supply chain. A robust SCPM infrastructure is crucial to realizing the benefits of various collaborative initiatives. |
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| Ernst & Young Finds Companies Confronting New Worries at Both Ends of Their Supply Chains |
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| With consumer spending on the decline, companies are obviously worried about the solidity of their customer bases. But there are risks to be considered at the other end of the supply chain as well. A recent poll conducted by Ernst & Young LLP Transaction Advisory Services identifies supplier instability as another source of growing concern. The trend “is putting added strain on U.S. companies already battling the fallout of the economic downturn on many other fronts,” the firm said. The poll finds that 67 percent of companies would be “adversely affected” if one of their top three suppliers failed. |
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| The Tax Efficient Supply Chain |
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| Multibillion dollar multinational corporations (MNCs) typically
have operations and facilities around the globe, operating in countries
with widely different corporate tax rates. The effective tax rate (ETR)
a company ends up paying often represents an overlay of where that
company operates, the size of its operations in the various countries,
and the tax rates of those countries.
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When GE wanted to transform their supplier information management processes across all business units worldwide, they turned to
Aravo SIM. |
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| "GE
is now managing over 500,000 suppliers and their data in Aravo SIM. We
are live in six languages with suppliers around the world. We expect
Aravo SIM will deliver significant cost savings while improving data
accuracy, compliance and productivity." |
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Gary Reiner
SVP and CIO of GE |
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| Aravo CEO Tim Albinson’s blog on the world of sustainable business. |
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| How to Manage Supply Chain Risk While Staying Cost Competitive |
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| Everybody is looking to cut costs these days as economic uncertainty continues to loom. At the same time, many conversations about Asia-Pacific supply chains will often link cost reductions to risk reductions, which can be a tough pair of objectives to marry. Tainted milk and lead-paint toys are still fresh in people’s minds. Yet to stay competitive at the cash register, brands and retailers can’t afford to ignore the need to lower prices. |
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