Global Links: Investing in Supply Chain Resiliency

This is an excerpt of the original article. It was written for the May-June 2016 edition of Supply Chain Management Review. The full article is available to current subscribers.

May-June 2016

The procurement function is at an inflection point.” So begins “The reinvention of procurement," an article by Jonathan Hughes and Danny Ertel, partners at the Boston-based consulting firm Vantage Partners. The authors argue that while many leading companies have transformed their procurement organizations into a linchpin of their enterprise strategy, far too many others remain trapped by procurement models that are out of date in today’s fastpaced economy, where the acquisition of innovation, collaboration, services and solutions is more important than transactions based on the lowest cost per unit. Reinvention is a fitting theme for…

Browse this issue archive.

Already a subscriber? Access full edition now.

Need Help?

Contact customer service

847-559-7581   More options

Not a subscriber? Start your magazine subscription.

Vigilance is a must no matter where you are doing business in today’s global marketplace. Indeed, add “cyber exposure,” extreme weather conditions and widespread fraud and piracy to the mix of their concerns, and supply chain managers have a daunting checklist to address before supply chains can be regarded as efficient and secure.

When it comes to ocean cargo shipping—the backbone of global supply chains—the world appears to be more secure: According to the Allianz Global Corporate & Specialty (AGCS) fourth annual Safety and Shipping Review 2016, vessel losses declined by 3% last year. Furthermore, losses have declined by 45% since 2006, driven by an increasingly robust safety environment and self-regulation.

While the long-term downward trend in shipping losses is encouraging, there are still reasons to be concerned as weak economic and market conditions, depressed commodity prices and an excess of ships continue to pres¬sure costs and raise safety concerns. AGCS has seen an increase in the frequency of loss¬es over the past year that can be attributed to this environment to some extent.

This complete article is available to subscribers only. Click on Log In Now at the top of this article for full access. Or, Start your PLUS+ subscription for instant access.

SC
MR