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SIM Executive Review
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September 2009
Featured Topics: Financial Risk
Supply Chains and Demand: As consumers scale back, supply chains are hurting from end to end. Finance can ease the pain.
The metaphor of the global supply chain, meant to convey strength through interconnectedness, has lately come to symbolize the opposite: companies dragging each other down as one fails to gauge demand while another struggles to meet it, or to manage the cash flow needed to remain a viable part of it.
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A Chain of Perils: The New Lean Logistics

Over the last 20 years a significant change has taken place in the way in which raw materials suppliers and end users deliver and receive products. Where stocked shelves in warehouses were once a measure of suppliers, manufacturers and retailers to meet customer requirements, now goods and materials are delivered just in time to meet manufacturing or retail demand. Distances between suppliers are rarely now just across town or a few provinces, but on the other side of the globe.

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Supply Chain Maxims

In a tough economic climate, when demand is down, there is an imperative for companies to review their supply chain to reduce cost, remove activity that reduces profitability and conserve cash. Many mid size companies have found themselves particularly vulnerable in the downturn with long term customer and supplier relationships on which they are particularly dependent and where expected volumes are just not there.

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SIM Trends
Manufacturers May Find Wisdom in Wal-Mart Retail Supply Chain Strategies
What can Wal-Mart teach manufacturing about global supply chains? Perhaps manufacturers would want to consider a best-in-market supply chain approach rather than best in class, to better meet customers' needs. Gary Maxwell, senior vice president of international supply chain for Wal-Mart Stores Inc., said a best-in-market approach requires thinking like a customer; complying with local and international laws, regulations, and customs; matching the maturity curve to the market; setting high expectations for low costs; and operating in a sustainable way. To better serve customers, best-in-market supply chain management trumps world class supply chains every time, he said.
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Companies Recognizing Climate Change as Business Risk

On Monday, the Carbon Disclosure Project (CDP) released its annual S&P 500 Report, and the results indicate that companies are increasingly willing to disclose their greenhouse gas (GHG) emissions and their plans for emissions reduction.What’s more, the data also shows me that companies are increasingly beginning to recognize the business risks associated with climate change.

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Article 13: Three New Case Studies Highlight Innovative CSR Initiatives

Article 13, strategic advisors on risk associated with business responsibility, has released three new case studies that showcase companies committed to implementing innovative CSR initiatives aligned with their business objectives. In its latest round of case studies, Article 13 profiles3M, The Medical Fair & Ethical Trade Group (MFETG) and Oxfordshire and Buckinghamshire Mental Health NHS Foundation Trust (OBMH).

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SIM Resources Spotlight
@Risk Header and link
Best Practices in Supplier Information Management
 
SIM Made Simple is the resource area for best practices in supplier information management (SIM)– derived from our experience in managing SIM for over 1 million suppliers for some of the world's largest companies.
Turning Supplier Data into Supplier Intelligence
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Recent News
September 23, 2009
Aravo Launches 'SIM Made Simple'
 
September 16, 2009
Memo to the CPO: Five Tips for Improving Supplier Relationships in 2010
 
September 16, 2009
Managing Supplier Risk Helps You Thwart Zombies, Mavericks and Other Threats in the Supply Chain
 
2Sustain Blog
Aravo CEO Tim Albinson’s blog on the world of sustainable business.
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@Risk Blog
Aravo CTO Kevin Cornish’s blog on supplier risk issues.
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Featured Survey
77% of Supply Chain Execs Say Environmental Issues are Important

A full 77% of supply chain execs regard environmental issues as “very important” or “important” to their company’s overall strategy, according to results of a new survey released by eyefortransport .

The study, Supply Chain Carbon & Sustainability Report –North America 2009, was designed to offer insights into the greening of North American supply chains, while highlighting the environmental programs that are benefiting companies most.

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Quote of the Month
There are Donkeys in Our Supply Chain
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