Global supply chains need to be prepared for terrorism, pandemics, natural disasters, forum told
By NISHA RAMCHANDANI
Source: The Business Times
September 28, 2007
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."



