Analyst Insight: Consumer perceptions of a company's supply chain have a big impact on how consumers feel about a company and its corporate brand. Research provides insight into how supply chain reputation impacts the overall corporate reputation and how supply chain strategies can be used to boost consumer perceptions of corporate brands. - Viktoria Sadlovska, Research Director, Reputation Institute
In 2011, batches of a cancer medication called Avastin, on their way to U.S. doctors from Canada, were found to contain no active ingredients. They were counterfeit - a rarity on U.S. soil. While no patient ever received the drugs, the fact that a potentially life-threatening counterfeit was able to make it to the U.S. shocked the pharmaceutical industry. It pointed to a growing trend - triggered by the rise of e-commerce and globalization - reaching the United States.
The grand golden doors of 500 Pearl Street, in Manhattan, have welcomed such glamorous names as Hermès, Tiffany & Co., and Kering, a French conglomerate whose treasures include Gucci and Bottega Veneta. The building is not a posh hotel or department store. It is the federal court for the Southern District of New York, a favored battleground for the decidedly unglamorous war against counterfeit goods.
A report from the World Economic Forum identifies 31 proven practices to help companies achieve a "triple supply chain advantage" of increased revenue, a reduction in supply chain cost and added brand value. The practices also help companies shrink their carbon footprint and contribute to local development, including the health, welfare and working conditions of the communities in which they operate.
From banners to jerseys, flags to face paint, the World Cup illustrated just how important a brand is for firing up fans. As brands come to mean more to everyday consumers, so, too, do the processes – from procurement to distribution – needed to fulfill a brand’s promise.
Business interruption and supply chain risks remain atop a list of the major hazards drawing companies' attention this year, according to the recently released Allianz Risk Barometer, a survey of some 400 of the firm's corporate insurance experts from more than 30 countries. Insurers are starting to pay much more attention to supply chain when underwriting industrial risks, the global insurer says.
Fine wines are vulnerable to counterfeiting or fraud, in large part due to their high value. A single bottle of French Bordeaux, from Chateau Le Pin, averages $3,000 and can be priced at up to $10,000 or more, making the trafficking of forgeries lucrative for counterfeiters. Photocopied labels, for example, can be attached to bottles of counterfeit wine, which can then end up being sold to consumers"”often at auctions, or at any weak link along the supply chain.
Undoubtedly businesses need to guard their end products against counterfeiting to protect their profits, their brands, their customers, and the financial health of their businesses. But fighting counterfeits cannot be fully effective without guarding supply sources - the materials and components used to manufacture the end products.