Wednesday, March 14, 2012

Is Your Supply Chain Prone to a Hack Attack?

We've all heard of hackers and most of us have experienced at least one or two hits—the trojan that ultimately disables a laptop or those annoying people who steal your email address and send advertisements to your contacts. Although these threats are more annoying than seriously detrimental, these simple scams do show how widespread hacking has become. A supply chain is only as strong as its weakest link. Therefore, supply chain managers need to recognize the reality of hackers and the costly risks they present.

Basic Principles
These days, the prevalent use of smart phones, personal computers and online services has caused governments worldwide to research the true threats which might arrive through these everyday, seemingly innocent means. In order to combat cyber-attacks, supply chain managers must remember that protection should be based on risk, not on assumptions about places or people who are likely to present risk. Cyber security can be breached from unlikely sources. Supply chains should be as transparent as possible, which can aid in detecting a potential threat as soon as possible. In addition, supply chain risks need to be assessed in ways that match the organization. Cyber threats vary based on the target—government departments and different types of business models all have unique security needs.

Beware of Danger
What exactly can cyber criminals do? Clearly, the injection of viruses into the software or hardware of a company could lead to serious slow-downs along a supply chain. Worse yet, malware can be designed to steal intellectual property or cause massive disruptions in networks. If a company's IP address is compromised, this could damage the firm's competitive advantage or critically endanger its reputation. The most daunting fact of all is that cyber attacks can come from almost any direction. Large companies may have numerous “kinks in the chain”, but small and medium-sized businesses should be wary as well.

Biggest Threat
The greatest threat of all is internal. A new study by Dr. Ken Saban, funded with a $360,000 grant from the Department of Defense, shows that most cyber attacks come from inside breaches created by unsatisfied or angry employees. This means that the person already has access and familiarity with the system which could lead to quite insidious malware. Other findings from the study show that cyber threats affect businesses of all sizes at about an equal level, and unfortunately, owners of small and medium-sized businesses tend to assume that they will not be targeted.

Secure It!
Ultimately, your supply chain will need security from end to end including developers, vendors, customers and others. Since most hackers are persons with access to the systems, firewalls cannot remain the only defense. Ironically, your supply chain needs a cyber security supply chain to protect it. Be aware of all avenues of attack: malware put into software or hardware, vulnerabilities with the company's software system which can be found and utilized by hackers, and compromised systems that are unsuspectingly brought into the office. The simple answer is this: your supply chain management needs to network closely with your company's computer security team. Working together, you can analyze the supply chain and remain knowledgeable of threats, both the kind you might expect today and the morphed ideas which could emerge tomorrow. In the case of small businesses, make sure your cyber security software addresses all reasonable points of attack.

In supply chain management, we work diligently to create profitability while holding together all facets of the chain. What a shame if a cyber criminal wreaks havoc on it all! These days, no one can afford to ignore cyber security. Be aware of the dangers and protect your efforts.

Contributed article by Kaity Nakagoshi, Bisk Education, University of San Francisco

The University alliance, in partnership with the University of San Francisco’s online program, has provided this article. They offer a variety of advanced professional certificates, each of which targets specific business and management skills. A supply chain management certification focuses on up to date trends, regulations, and sustainability issues. . For more information on the courses offered please visithttp://www.usanfranonline.com .

Sunday, February 05, 2012

JCREW Goes Global, with Shipping

Five years after I started complaining the retailers in the US are finally wising up and shipping to Europe -- the latest being J.Crew.  According to the shipping info on the website the folks at DHL won the logistics outsourcing business.  While I have no insight into the size of the contract, DHL is offering flat fee shipping of only 11.95 EUR in 4-8 business days to most of the European Union countries. Quite a deal.

With my own self interests in play I am glad they are expanding to the European Union.  I'd love to hear what took them so long.  I'll be testing it out soon enough.  Let's just hope it doesn't get stuck in customs or its back to the drawing board.

Wednesday, December 21, 2011

Fulfillment Outsourcing Can Overcome Holiday Challenges to Improve Your Brand

For the first time in nearly seven years, since I started this blog, I am including a contributed article.  The article below is written by Jesse Langley, who I can only assume is a freelancer for Fifth Gear, an order fulfillment firm.  Either way, I was not paid to run this article, but since it is seasonal and since I don't cover fulfillment much I thought I would share it.




----------------------------------------------------------------------------------

Successful order fulfillment and strong branding are inextricably linked, and the hectic holiday season presents greater challenges than some retailers can manage. But using fulfillment outsourcing can meet and exceed any challenge that Black Friday, Cyber Monday and Christmas gift giving may present. 

Veteran retailers understand that outstanding order fulfillment services involve much more than simply wrapping up a product and shipping it. This is a wonderful opportunity to strengthen your brand and build customer loyalty. In the longer term, this target is much more important to your consistent profitability than just timely product receipt. 

Smart e-commerce

E-commerce retailers must deliver products to consumers in a timely manner. Forward thinking companies also realize that this opportunity to engage their customers helps their brand reinforcement and identifies the organization as one that stands above the madding crowd. Use that shipping container and its contents to further emphasize your specific brand and your company's winning biography.

Understand that branding is not a marketing campaign with an end date. Your evergreen branding efforts must first promise superior products and outstanding customer service. Then you must deliver on those promises. Should you be successful with the promise-making phase and not deliver on those promises, you will set customer expectations that you cannot satisfy. This result may be more damaging than ignoring branding efforts.

However, making promises your customers want--and delivering that which you promise--will engage your customer base much more than millions of dollars of media or mail advertising ever could. The level of credibility your company will enjoy will be as strong as positive word-of-mouth recommendations from friends and family. You simply cannot buy this wonderful level of customer confidence. 

Enhancing your brand with order fulfillment

As e-commerce explodes, using order fulfillment as a branding tool can also become more popular and effective. Of the almost 180 million consumers that research products online, 83 percent will make an Internet purchase of goods or services. Using order fulfillment as a branding strategy component should be self-evident.

Whether you employ in-house order shipping or choose fulfillment outsourcing, use this function as a valuable marketing tool. Think a bit outside the box (pardon the pun) by taking advantage of the myriad of branding and marketing opportunities, including branded shipping materials that are environmentally-friendly, recyclable packaging and other enclosed items that reinforce your "mission." 

For example, consumers who perceive your company as an environmentally conscious organization register a long-lasting positive image in their minds. Even those customers who have yet to embrace the importance of green living will receive your message with heightened credibility for your company. Those customers who "walk the walk" of environmentally-friendly living will welcome your message and become engaged.

Regardless of the benefits retailers enjoy from social media marketing, using order fulfillment, as a branding tool can be more effective. Getting an order to the right customer at the right time with brand-enhancing materials and packaging will generate a return on investment (ROI) that will excite owners, management and shareholders. 

Source: Whitepaper



Monday, November 21, 2011

Logistics of the Holiday Season

From our friends over at Derby. Some incredible stats. Enjoy.

Logistics of the Holiday Season
Logistics of the Holiday Season

Friday, November 04, 2011

What are you saying HSBC?

I just opened up The Economist after lunch to find a strange ad with the headline "In the future, the food chain and the supply chain will merge" by HSBC a.k.a the Hong Kong Savings Bank Corp.  The ad goes on to say "HSBC is one of the world's leading supply chain organizations." WHAT????  Did I miss HSBC in the latest AMR/Gartner Top 50 supply chains?  I am not quite sure, which statement is more perplexing.

First, the food supply chain and the supply chain are one already.  Cargo ships and cargo planes carrying electronics, paper goods and food all use the same ports, trucks and planes.  There is only one global supply chain.  And unless they are printing money at HSBC, I fail to understand how they claim to be "one of the world's leading supply chain organizations".

In digging deeper on the HSBC website they talk about "trade and supply chain":

As one of the largest trade and supply chain organisations in the world, we have local trade experts available to support you wherever you do your business. We can help put you in control of your operations and assist you to streamline your trade processes with our advanced technology. Our aim is to ensure that your import and export transactions are managed effortlessly and effectively, providing your business with the best possible opportunities to grow.


Okay, so you may have a few experts that can get a box through customs, that is only a step of the supply chain.

And then comes the real kicker, they show all of the awards they have won, which are about "trade finance" and "finance provider".  Sorry, but being the cash behind the supply chain, while valuable, doesn't make anyone an expert in the end to end supply chain, from sourcing to end of life.

Are you going to help with my C-TPAT compliance?  Will you help me find the best logistics provider in Namibia? Or make sure my suppliers are meeting ethical standards?  I'm not so sure.  When I need a loan, we know who to call.