Best of Spend Matters: Supply Risk (Part 1)

Probably THE hot topic of 2010 (so much so that we're already having to think of more exciting ways to say "risk mitigation" around these parts -- we try not to bore you to death) -- supply risk, be it from a litany of natural disasters, a "withholding" of rare earth metals, several factors go into not being able to get that iPad or elusive white iPhone exactly when you want it. Check out our best posts on the subject below, and look forward to another year of coverage in 2011!

Keeping Your CPO Out of the Hot Seat -- Supply Risk Mitigation -- A Fortune 500 company sole sourced a key raw material from a Japanese supplier, who produced this specific raw material in only one plant. In 2008, the plant exploded and burned to the ground. This same Fortune 500 company used another raw material in one of its products. In 2008, Chinese supplies of this key material became tainted and killed hundreds of people around the world.

McDonald's Recalls Shrek Glasses for Cadmium -- What is This Toxic Metal and Why is it Used? -- McDonald's is recalling 12 million drinking glasses -- most likely sold to children or parents of children -- because Federal regulators have determined they contain dangerous levels of the toxic metal cadmium.

Supply Risk: Why Aren't the Numbers Generating More Attention? -- When we publish an article on Spend Matters looking at supply risk, commodity volatility, supplier performance or another topic that I often find of significant genuine interest from a public service perspective, we're lucky if we get five hundred views in a twenty-four period (contrast this with an article highlighting the use of a somewhat undifferentiated technology and you'll see that "what sells" is not always what I see as the most important topic).

Sheena Moore

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