Global Logistics and Supply Chain Strategies - September 2008 - (Page 53)

endanger consumers. “Information systems can help companies identify and monitor in real time the exact location and whereabouts of every single item moving in their supply chain, and then make moves to divert or remove items,” Johnsen says. Of course, recalls could be sidestepped and companies could avoid going into fran- tic, crisis mode if they were receive early indicators that something is amiss in the supply chain. Those companies that collect detailed performance data on their suppliers and logistics providers are well positioned to see such warning signs. “If a supplier is chronically missing ship windows or if one has repeatedly shown an inability to build complete shipments and report satisfactorily, this is a supplier that’s risky to you,” Johnsen says. “You can begin to take proactive actions to remove them altogether or to at least reduce the amount of business they do for you.” That kind of visibility is neither traditional nor widespread today. If anything, the technology that most companies have used for the last 25 years or so was intended to give them views into processes only inside their four walls, Johnsen says. What is needed is a visibility that extends well up and down the supply chain. “To enable that, you have to rely on a different kind of technology platform, one that’s grounded or based on the internet, which has become the ubiquitous B2B communication backbone.” Platforms like that of GT Nexus are designed to automate processes among companies and act as data hubs. With such systems, any party to a given transaction, from suppliers to forwarders, brokers and consolidators, and from carriers to retailers, can make updates. “This electronic filing system in the sky is a different kind of technology that allows everyone along the supply chain to see a common system about product flow, orders and inventory.” It’s also a system of record, which can help in avoiding risk. Users can mine the system for performance. “Where are those suppliers missing ship windows?” Johnsen asks. “Where are the ones with quality problems? Are they based in certain regions of the world? Do I need to pay attention to their size? “You can see these patterns right way,” he says. “That historical perspective gives you the information to make risk management decisions at a global level.” “It’s all about information and money, right, and most companies in the global supply chain arena survive and get by with a fraction of the information that they could be getting, making suboptimal decisions about the physical and financial supply chain all the time.” Clearly, the longer the supply chain, the greater the number of potential risks. And some companies that looked to the far to the East failed to ade- GLOBAL LOGISTICS & SUPPLY CHAIN STRATEGIES 53

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Global Logistics and Supply Chain Strategies - August 2008 Contents Editorial GL&SCS Exclusive Fast Forward Up Front Cover Story: Free The Enterprise: Busting Silos in the Supply Chain Business Process Management Merits New Look fromCorporate Strategists Ships and Ports Explore Many Ways to Go Green The Right Information Should Help Avoid Any Kind of Risk Industry Voices

Global Logistics and Supply Chain Strategies - September 2008

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