Supply Chain Managers Must Leverage “Market Power” for Security and Profit

Supply chain managers arguably have no peer in understanding the complexity of the global economic and regulatory environment. In like manner, they’re among those best positioned to expedite a cutting-edge approach to public-private security cooperation that boosts economic competitiveness while advancing the public interest.

By ·

Decentralized criminal and terrorist networks are moving at the speed of 21st-century commerce.

According to a recent report issued by the Stimson Center in Washington, DC, new forms of global illicit trafficking threats, means that these partnerships are even more important.  Nate Olson, a research associate for the Managing Across Boundaries Initiative at Stimson, maintains that reliable data on global contraband flows is “notoriously evasive.” One estimate, he says, puts the total annual trade in illicit goods, excluding money laundering, at $650 billion. Illegal narcotics, along with counterfeit pharmaceuticals and electronics, accounted for roughly half.)

But in quantitative and qualitative terms, there’s little doubt that the problem is serious and growing. Whether they deal in drugs, counterfeit products, or weapons, decentralized criminal and terrorist networks are co-opting the same physical and informational infrastructure that enables legitimate trade. “They’re moving at the speed of 21st-century commerce,” says Olson.

Stimson analysts add that this hasn’t stopped governments from trying to bring cross-border trade more within their reach through the usual countermeasures of customs enforcement, intelligence gathering, and industry mandates. Yet even when the policy objective is laudable, using the traditional tools alone are often inadequate, and the report indicates that they can have unintended consequences. For example, new disclosure requirements related to minerals from conflict-affected areas, impose what many regard as “unrealistic” diligence standards on firms far downstream in supply chains for electronics.

More tomorrow.


About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review magazines and web sites. Patrick is a widely-published writer and editor who has spent most of his career covering international trade, global logistics, and supply chain management. He lives and works in San Francisco, providing readers with a Pacific Rim perspective on industry trends and forecasts. You can reach him directly at [email protected]

Subscribe to Logistics Management Magazine!

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your entire logistics operation.
Start your FREE subscription today!

Article Topics

All Topics
Latest Whitepaper
Private Fleet vs. Dedicated: Which one is right for you?
Having the right fleet for your business can give you an advantage over the competition and lower transportation costs.
Download Today!
From the April 2017 Issue
While adoption rates have remained relatively flat, yard management systems (YMS) are helping logistics operations turn that important space between the loading dock and the gate into a vital link in the supply chain.
Information Management: Wearables come in for a refit
2017 Air Cargo Roundtable: Positive Outlook Driven by New Demand
View More From this Issue
Subscribe to Our Email Newsletter
Sign up today to receive our FREE, weekly email newsletter!
Latest Webcast
Maximize Your LTL Driver Adherence with Real-time Feedback
This webinar shows how companies are using real-time performance data to optimize the scheduling of their city fleets, as well as the routing of their standard, accelerated and time-critical shipments.
Register Today!
EDITORS' PICKS
2017 Salary Survey: Fresh Voices Express Optimism
Our “33rd Annual Salary Survey” reflects more diversity entering the logistics management...
LM Exclusive: Major Modes Join E-commerce Mix
While last mile carriers receive much of the attention, the traditional modal heavyweights are in...

ASEAN Logistics: Building Collectively
While most of the world withdraws inward, Southeast Asia is practicing effective cooperation between...
2017 Rate Outlook: Will the pieces fall into place?
Trade and transport analysts see a turnaround in last year’s negative market outlook, but as...