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

By Patrick Burnson, Executive Editor
October 16, 2013 - SCMR Editorial

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

image
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 .(JavaScript must be enabled to view this email address).

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!

Recent Entries

Getting items ordered online to your home on a same-day basis is as important or relevant as it needs to be, and it depends on things like the type of products being ordered and its relative urgency as well. This was put into better perspective for me during a recent conversation I had with Dr. Victor Allis, CEO of Quintiq, a supply chain vendor specializing in a single optimization and planning platform.

Diesel prices dropped for the third straight week, with the average price per gallon seeing a 2.5 percent decline to $3.869 per gallon, according to the Department of Energy’s Energy Information Administration (EIA).

Seasonally-adjusted (SA) for-hire truck tonnage in June dropped 0.8 percent on the heels of a revised 0.9 percent (from 1.0 percent) increase in May and was up 2.3 percent annually.

Even as Congress was putting the finishing touches on a 10-month short-term funding extension to the federal aid highway bill that temporarily averts a funding crisis, Transportation Secretary Anthony Foxx was ripping the measure as a short-term “gimmick” that once again fails to adequately fund U.S. infrastructure needs in the long run.

ISI is comprised of Integrated Services, ISI Logistics and ISI Logistics South and is focused on the warehousing and transportation needs of automotive shippers. RRTS said that in 2013, Integrated Services generated revenues of approximately $21 million adding that Integrated Services is expected to be accretive to Roadrunner’s earnings in 2014.

Article Topics

Blogs · Global · Supply Chain · Security · All topics

About the Author

Patrick Burnson, Executive Editor
Patrick Burnson is executive editor for Logistics Management and Supply Chain Management Review. Patrick covers 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. Contact Patrick Burnson

Comments

Post a comment
Commenting is not available in this channel entry.