Only 41 percent of companies surveyed are considered to have "mature" supply chain risk management processes, but nearly four in five mitigate against disruptions by implementing a dual sourcing strategy, according to a recent report.
A maritime attack from Al-Qaeda or other affiliate terrorist groups is now increasingly likely, maritime security firm Gulf of Aden Group Transits (GoAGT) has warned.
Companies are increasingly connecting the dots between risk management and sustainability by making sustainability issues more prominent on corporate agendas, says a study by Ernst & Young LLP and GreenBiz. Driven by trends such as extreme weather events and risks to natural resources, among other factors, the shift is evidenced by the increasing involvement in sustainability-related issues of shareholders and the C-suite. At the same time, the study finds, companies are not adequately aligning risk response to the scale of sustainability challenges.
Third-party logistics companies with experience in Mexico and strong partnerships with leading Mexican carriers and customs brokers can make cross-border shipping a truly seamless activity, says Dennis McCaffrey of XPO Logistics.
A new reform-minded government, a stable economy and sound infrastructure are among the factors combining to make Mexico a good market for logistics operations, says Eric Markeset, who is based in Mexico City as principal of consulting firm Tsol.
Li & Fung - the most important company that most American shoppers have never heard of - has long been on the cutting edge of globalization, chasing cheap labor to garment factories first in China, then elsewhere in Asia, including Bangladesh. Now, with sweatshop disasters there drawing international scrutiny, the business is looking for the next best place - perhaps South America or sub-Saharan Africa - where it can steer apparel buyers seeking workers to stitch clothing together for a few dollars a day.
While most executives recognize the importance of supply chain sustainability, cost is still a major factor and trumps environmental impact as a driver of behavior, according to a survey of 150 C-level and senior leaders at U.S. and European companies, according to AlixPartners, a global business-advisory firm. However, those that can implement cost-effective sustainability strategies and effectively market them to customers will have a competitive advantage.
For years developing countries have been thrice blessed. First, near-zero interest rates in the U.S. drove investors into bourses from Mumbai to Mexico as they searched for higher returns. Next, China emerged as the trading partner of choice as it gobbled up Indonesian palm oil, Cambodian hardwoods, and Brazilian iron ore. Finally, with the exception of the Middle East, the politics of most emerging-market countries were stable. The blessings have run out.