Nearly two-thirds of the companies that filed conflict mineral reports with the U.S. Securities and Exchange Commission this year did not disclose the country of origin for the tin, tantalum, tungsten and gold (3TG) in their supply chains. According to a new analysis of the 1,216 conflict mineral reports filed for 2015, just 33% of companies identified whether these minerals were sourced from conflict zones in Africa.
The Supply Chain Visibility Category
Big data analytics has a number of applications within the supply chain. Yet there is still some lag in adoption of solutions that help mine through the wealth of information that can lead to an increase supply chain visibility, reduce business risks and other benefits. Recent research has shown while the majority of companies understand the opportunities big data presents, fewer are actually implementing analytic capabilities and integrating these tools into supply chain functions.
The U.S. General Services Administration announced early last week it looking for a supply chain solution as part of a pilot program aimed at helping federal procurement professionals authenticate IT and communication products in the government’s supply chain. The independent organization that supports federal agencies issued an RFI May 9 to gather information about the development of a supply chain solution and interface that would prevent counterfeit IT components from entering the federal supply chain.
In 2011, the unthinkable occurred in Japan. A massive earthquake triggered a tsunami, which in turn triggered a nuclear power plant meltdown, all of which combined to create a humanitarian disaster of epic scale. It is during times like these that many companies rethink their supply chain vulnerabilities and threat matrices. The result is an upswing in interest in supply risk management and resiliency strategies and initiatives and associated technology solutions.
A few weeks ago, we published a four-part series focused on how maintenance, repair and operations (MRO) is a significant — yet often overlooked — business function in the supply chain. Authored by Michael Lamoureux, research analyst, and Pierre Mitchell, chief research officer, the series explores how this ignored category is abundant with possibilities for cost savings and overall supply chain improvements, especially when using a managed service provider model that works in the product supply chain in your approach.
Oil prices, exposure to natural disasters and political turmoil, including terrorism threats, were the major factors impacting a country’s business resiliency in 2015, according to the recently released FM Global Resilience Index. The index ranks 130 countries on their ability to respond to supply chain disruptions, a tool FM Global, a commercial property insurance provider, intends for companies to use to manage risk and make business decisions.
Supply chain risk management (SCRM) is becoming a top priority in procurement, as organizations lose millions because of cost volatility, supply disruption, non-compliance fines and incidents that cause damage to the organizational brand and reputation. Bribes to shady government officials, salmonella in the spinach and forced labor in the supply chain can all result in brand-damaging headlines that can cost an organization tens of millions in sales and hundred of millions in brand damage. And while reputation may only be important for name brands, cost volatility and supply disruption affect all manufacturers.
Levi Strauss & Co, H&M and Inditex, which owns the popular brand Zara, rank the highest among fashion brands when it comes to supply chain transparency, according to a new report published by the Ethical Consumer in partnership with Fashion Revolution. The Fashion Transparency Index scored fashion companies according to how well they publicly communicate their supply chain sustainability initiatives.
Consumer Goods Companies Lack Supply Chain Visibility, Unable to Assess Environmental, Social Impacts of Products
The majority of consumer goods manufacturers lack visibility into their supply chains and are unable to truly track sustainability practices or identify problem areas such as possible deforestation and forced labor, a new report from The Sustainability Consortium (TSC) shows. The group’s 2016 Impact Report stated that of the 1,700 companies surveyed, only 19% indicated they had full supply chain transparency. Twenty-seven percent said they had partial visibility into their supply chain and 54% had no supply chain visibility.
The earthquakes and aftershocks that have hit Japan in recent weeks have caused significant supply chain disruptions. While companies cannot completely predict natural disasters, they can and must position themselves to be able to respond when one occurs, risk management experts say. A key part of setting up a strong risk management program is having access to information that provides a high level of visibility over what is happening in your supply chain.
The new Trade Facilitation and Trade Enforcement Act makes it illegal for the U.S. to accept imported goods made through forced labor. The U.S. government has a list of more than 400 goods produced using child or slave labor that can serve as a guide for companies assessing their supply chains. However, according to Pierre-Francois Thaler, co-founder and co-CEO of supplier rating technology provider EcoVadis, companies looking to truly tackle slave labor in their supply chains and establish long-term sustainability initiatives need to dig deeper and do their due diligence beyond checking the government’s list.
Consumers today are demanding more information than ever before on the food they buy and eat. It’s not a new phenomenon, but it’s an important point for food companies and retailers to take note of, especially as they compete for customers’ dollars and loyalty. A new report, however, has shown nearly two-thirds of consumers don’t think food companies are transparent enough — they want more food production information than they are finding at the grocery store.