Upside to Economic Downturn

By Patrick Burnson, Executive Editor
November 24, 2010 - SCMR Editorial

Risk management in procurement remains “a white-hot topic,” say researchers at Accenture. In a recent “point of view” paper, analysts add that the global recession made companies significantly more aware of the need for advanced risk management practices.

It is Accenture’s position that the need for a structured risk-management capability within (as well as beyond) the procurement organization is significant.

To validate its view that risk management in procurement requires efforts beyond what most companies are doing—and to identify leading practices, metrics and solutions—Accenture partnered with Professor David Simchi-Levi of the Massachusetts Institute of Technology (MIT) in Boston on a Procurement Risk Management Research Study.

“Is it possible that the recent economic downturn actually spawned some good news?” researchers asked. “In procurement risk management, that might be the case.”

According to survey results, the global recession made companies significantly more aware of the need for such advanced practices.

Accenture’s survey, which was conducted last year, noted that 85 percent of respondents believe that volatility will remain high in the near future, thus implying that formal and sustained risk management efforts should be enacted to countermand that trend.



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 Department of Transportation’s Bureau of Transportation Statistics (BTS) reported this week that U.S. trade with its North America Free Trade Agreement (NAFTA) partners Canada and Mexico increased 4.4 percent from August 2013 to August 2014 at $100.6 billion.

As expected, global trade dipped from August to September but still saw annual gains, according to data issued this week by Panjiva, an online search engine with detailed information on global suppliers and manufacturers.

Transportation and logistics merger and acquisition (M&A) activity in the third quarter saw annual gains, which were driven by smaller deals in the trucking logistics, shipping, and passenger air sectors, according to data issued in the Intersections report by PwC this week.

With the holidays rapidly approaching, it appears retailers are not quite done getting inventory set up and on the shelves in time for what is expected to be a fairly active shopping season. That much was evident based on recent data for September volumes issued by the Port of Los Angeles (POLA) and the Port of Long Beach (POLB).

Join Industry Expert Adrian Gonzalez for this educational webinar on the tenets and the benefits of Closed-Loop Operational Management. You’ll learn how Closed-Loop Operational Management optimizes orders, inventory, and transportation concurrently, and how it is able to optimize large-scale problems on a daily basis.

Article Topics

Blogs · Global · Technology · Procurement · Management · Accenture · 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.