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

The PMI, the ISM’s index to measure growth, increased 1.8 percent to 57.1 in July. This is 1.8 percent higher than the 12-month average of 55.3. The PMI has grown in 18 of the last 20 months, with economic activity in the manufacturing sector expanding for the last 14 months as the overall economy was up for the 62nd consecutive month.

YRC Worldwide, whose regional and long-haul units provide the second-largest LTL capacity in the trucking industry, narrowed its second-quarter loss to $4.9 million on $1.32 billion revenue, compared with $15.1 million loss on $1.24 billion revenue in the year-ago quarter.

With NFL training camps in full swing, it stands to reason that Congress must be replete with football fans, given how it basically has elected to punt on federal transportation funding yet again, with the Senate yesterday signing off on a ten-month bill to keep federal surface transportation funding intact through May 2015 through a nearly $11 billion stopgap measure.

Carload volumes were up 4.3 percent at 306,988, and intermodal volume for the week ending July 26 was up 3.3 percent at 264,809

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.