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Balancing Supply Chain Green with Balance Sheet Green

Posted 03-02-2010 at 12:00 PM by Albert Fong (Al's Supply Chain Corner)

Developing a greener supply chain has been discussed for years, but it really didn’t gain much traction until the fuel crisis that started about 20 months ago. When fuel prices were through the roof, everyone from the supply chain to the soccer mom was in an uproar about the adverse effects on one’s well being. Rants focusing on the need for alternative fuel sources were common, and the overuse of the word “green” would’ve made any leprechaun happy.

Alas, we have short memories as the chaos gave way to a mild roar with the decline of fuel prices. Of course, we’ve used the recession as an excuse for not adopting green policies, which is why it’s noteworthy when a company such as Wal-Mart continues to expand its greenness. According to a recent article, Wal-Mart instituted a new program that would pressure its suppliers to adopt green measures within their manufacturing and packaging processes.

Is this a good thing? Long term, the benefits can be...
Corporate Communications
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Toyota’s Just in Time: Too Much Trust and Too Little Visibility

Posted 02-25-2010 at 11:51 AM by Albert Fong (Al's Supply Chain Corner)

For the longest time, Toyota’s lean supply chain approach served as the role model for other auto manufacturers. During congressional testimony this week, financial growth clouded its priorities replacing the customer satisfaction philosophy it had followed for decades. The Economist published an article today that provides an overview of the inner workings of Toyota and what went wrong. Two words sum up the rise and fall of Toyota: trust and visibility.

Back in business school, “just in time” was a concept that was drilled into me through case studies that exemplified the economic success of Japan during the 1980s. But Toyota’s current troubles highlight not the deficiencies of the concept, but weaknesses in business judgment. Western automakers tend to source in-house or follow the lowest bidder model. Toyota and many Japanese manufacturers, on the other hand, tend to work with a select group of suppliers and rely on them as a sole source of specific components....
Corporate Communications
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Ignorance or Apathy, Supply Chain Risk Doesn’t Differentiate

Posted 02-25-2010 at 11:35 AM by Albert Fong (Al's Supply Chain Corner)

Jason Busch of Spend Matters wrote an interesting post on his blog yesterday about Apple and its supply chain. More specifically, the story focuses on one of Apple’s manufacturing plants in Longhua, China where it’s not uncommon for security and even local police to mentally and physically intimidate reporters and anyone else who attempts to take pictures outside of the facilities entrance. Furthermore, there is an assumed special authority that the facility’s security team has to enforce laws any way they want.

Regardless of what is actually going on out there, these type of reports are somewhat disturbing and as Jason mentioned, highlight supply chain risk. I’m not sure you can assume that Apple actually knows what’s going on at its manufacturing facilities, and if they do, they don’t seem to care. Whatever the case, Apple automatically becomes accountable—guilty by association would be an understatement. Let’s assume Apple doesn’t know. They could be vilified...
Corporate Communications
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Cargo Thefts on the Rise...Accountability Less So

Posted 02-24-2010 at 03:39 PM by Albert Fong (Al's Supply Chain Corner)

According to a recent story, truck cargo thefts were up significantly in 2009 and compounded by that fact that freight shipments were already low due to the recession. LoJack Supply Chain Integrity first released a report last August and now FreightWatch International reaffirms the growing number of thefts up 300% from the previous year. While 300% is an astounding number, consider all the thefts that weren’t reported since most companies tend to keep such incidents quiet.

It didn't matter if it was trucks or locked facilities. Thieves weren't exactly picky with electronics and food/beverage being primary targets. Think facilities with surveillance and trucks with tracking devices were any safer? Think again. Most thieves simply steal and hide trailers unattended to check for hidden tracking devices.

The importance of proper inventory management and knowledge about your supply chain from beginning to end is emphasized even more. Whether the inventory...
Corporate Communications
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Compliance and Taking a Cruise

Posted 02-23-2010 at 01:22 PM by Albert Fong (Al's Supply Chain Corner)

What does taking a cruise have to do with the supply chain? More than you think especially if you get sick during a trip. Florida-based West International Medical Supplies is a leading medical supplies company for the cruise ship industry. The company is also a SmartTurn customer who has seen significant financial benefits which we announced in a press release today.

With the major cruise lines headquartered in Florida, locating there is a huge competitive advantage. From a practical standpoint, West International is only one of a few that can actually be located there. Why? Because of Florida’s strict compliance issues.

Florida has one of the strictest sets of compliance regulations in the U.S. when it comes to the transport of medical supplies. They are so restrictive that West International’s competitors locate operations outside of the state to skirt them.

Where does SmartTurn come in? West International uses...
Corporate Communications
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