Commodity EDGE: Public Policies Impacting Sourcing and Supply Chain Organizations (Dispatch 9)
We're live blogging Commodity EDGE today and tomorrow. If you can't join us at the event, join us virtually on Spend Matters and MetalMiner.
Lisa Reisman just began the second morning plenary session at Commodity EDGE. Joining her on stage for a panel on how public policies (Dodd-Frank, conflict minerals, WTO/China, etc.) impact procurement and supply chain organizations are Jennifer Diggins, Director, Public Affairs for Nucor Corporation, Thierry Decocq, Founder and Managing Partner of YQ Purchasing and Mike Zadoroznyj, Vice Presiden, Product Center, Treasury and Regulatory Compliance Division at Triple Point Technology.
Zadoroznyj took the floor first, noting Dodd-Frank is fundamentally about transparency, whether it's conflict minerals traceability or tracking contracts and valuation on derivatives, hedging and related activities. "It's the mineral itself, whether you're trading or sourcing it -- it's not just the region." In other words, end-to-end documentation of activities -- whether tracing the metals supply chain back to the source or looking at hedging accountability and transparency -- is becoming even more important for procurement, finance and supply chain organizations.
Lisa next asked Decocq about the state of the European economic situation. He started by noting that the situation in Europe has changed dramatically. For example, Spain and Italy owe France $731 billion USD, or nearly 29% of the French gross domestic product. "The big problem is not Greece," he said. It's Spain and Italy and immediately after that, it's France. In short, Decocq suggests things are bound to get worse -- and the chance of a falling Euro (and even a broader crisis) is material.