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In The Press ::
Managing risk part of logistics manager's role

The role of the logistics professional is evolving from supply chain manager to risk manager, as global supply chains are increasingly exposed to risks such as terrorism, pandemics and natural disasters.

Political instability, port congestion, customs delays and parts shortages only add to the fray, which make global supply chains today more vulnerable.

This was the message from Arnie Bornstein, Executive Director of Marketing and Corporate Communications for logistics and transportation company BDP International, when speaking at the Supply Chain Management World Asia Conference held in Singapore.

"The idea of being prepared is one of the changes the modern logistics provider is bringing to the market place," he told BT.

"We have access to information from carriers, customers, other logistics providers and government agencies. The role of the third party logistics provider has really been evolving from a tactical role to a strategic role."

Mr. Bornstein also emphasised that a great deal of efficiency can be achieved through logistics process improvements. Raising the standards beyond traditional expectations would be a means of having true, effective global supply chain management.

Mr. Bornstein's two-pronged approach to mitigating disruptions to supply chains is simple: technology and visibility. "The key to surviving a supply chain disruption is knowing what is going on at all times and what options are available."

This is something BDP has learnt from speaking to customers and has resulted in the development of BDP Smart - a customer service portal which is likely to be launched in 2008.

"It will provide both strategic information as well as tactical frontline decision support information. What is exciting about it is that it will exist in one place and it will enable customers to customise it to their individual needs," said Mr. Bornstein.

He also commented on the recent Joint Shippers' Declaration that Asia should be next in line for maritime regulatory reform to stamp out monopoly practices by liner shipping companies, acknowledging that while such a move would be beneficial, it is still too early to comment exactly how such regulatory changes would affect the shipping industry.

It is possible that there will be benefits that will be passed on to the end consumer, although Singapore is already a competitive market, he said.

The Joint Shippers' Declaration was signed here last week at the 14th annual meeting of the Global Shippers' Forum. The call for such reforms in Asia comes on the back of similar efforts in Europe and North America.

In June this year, BDP International president and chief executive officer, Richard Bolte Jr., forecast that 50 percent of its profits will stem from Asia in 10 years, up from the current figure of 20 per cent.

Headquartered in Philadelphia, BDP is privately held, which Mr. Bornstein feels remains an asset.

"From a competitive standpoint, we feel it is a great time to continue being a privately held company. It has allowed us to keep our eye on what we believe is an important differentiator. We can spend a lot of our time focusing our energies on creative ways to keep customers happy."

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