Selling secrets in the supply chain

Selling secrets of the supply chain

There’s nothing sexy about selling secrets – it’s just silly… as our top story demonstrates:

Selling secrets in the supply chain
Ex-Apple supply chain manager fined, sentenced to 1 year in prison for kickback scheme
  • Former Apple Global Supply Manager Paul Devine — who ran afoul of the law in 2010 for selling details of upcoming Apple products to Asian manufacturers — has been sentenced to one year in prison and fined $4.5 million for his role in the conspiracy.
  • Devine plead guilty to the crimes in 2011, but was only sentenced this week. He will begin serving his prison term — which will be followed by three years of supervised probation — on Feb. 19, 2015.
  • Alongside Singaporean partner Andrew Ang, Devine was charged in 2010 with 23 counts including wire fraud, kickbacks, and money laundering. Devine used his position as a senior supply chain manager to pass information about upcoming products to Apple suppliers, which used the information to gain leverage in negotiations with Apple and paid kickbacks to Devine and Ang.

Read more on Apple Insider

Agencies urged to raise concerns over Premier Foods’ investment payment scheme

  • Agencies that work with Premier Foods are being urged to contact the Marketing Agencies Association’s Pitch Watchdog anonymously to flag concerns over controversial ‘pay to stay’ payments, as it calls on government to take action.
  • The MAA has urged agencies to come forward to raise concerns over the practice, after it emerged food giant Premier Foods, which owns brands including Mr Kipling and Oxo, had been making “millions” of pounds from investment payments made by suppliers into the business.
  • Premier Foods launched an investment payment scheme 18 months ago as part of its strategy to consolidate its supplier base and invest in innovation, promotion and marketing by asking suppliers to make an upfront investment in the business. Suppliers accused the business of forcing them to make payments, or risk being cut off of its supply base.
  • Premier Foods backtracked over the controversial scheme over the weekend and said it would “simplify” its strategy to recoup money and discounts from its suppliers, claiming there was widespread misunderstanding and misrepresentation of the scheme. However, it defended the scheme as “standard business practice.”

Read more at Marketing Magazine

Reshoring boosts British manufacturer’s supply chain

  • A British manufacturer claims to have strengthened its supply chain and boosted local jobs by reshoring production from China. Vent-Axia, which produces fan and ventilation systems, has brought its manufacturing back to the UK, investing £350,000 in tooling for new production lines and associated building works.
  • The move has enhanced innovation in its products, sped up the research and development cycle and improved the company’s responsiveness to customers. Reshoring has also reduced its carbon footprint, the company told the Sussex Manufacturing Forum.
  • “We are now much closer to our market,” said Jenny Smith, marketing services manager. “We have cut our lead times from three months to a matter of weeks, which not only means that we have less cash tied up in inventory, it also enables us to respond much more quickly to market opportunities.”

Read more at Supply Management 

Hospitals eye mHealth to reduce supply chain costs

  • As health systems look to trim costs in 2015 to address the impact of the Affordable Care Act, they’ll want to look at the supply chain. And mHealth could come in handy.
  • That’s the opinion of Jump Technologies, an Eagan, Minn.-based developer of cloud-based inventory management solutions, which recently issued its list of predictions for the coming year.
  • The company sees mobile supply chain management solutions as an important part of the healthcare budget – especially as health system administrators focus on more important matters like EMRs, meaningful use, ICD-10 and regulatory issues. It references a 2014 survey by Jamie C. Kowalski Consulting, which found that nine out of every 10 hospital C-level executives and supply chain adminstrators see supply chain management as one of the top three areas for reducing expenses.

Read more at mHealthNews

Cyber criminals are targeting smartphone supply chains, warn researchers

  • A new mobile trojan dubbed “DeathRing” is being pre-loaded on to smartphones somewhere in the supply chain, warn researchers at mobile security firm Lookout.
  • DeathRing is a Trojan believed to be of Chinese origin that masquerades as a ringtone app, but can download SMS and browser content from its command and control server to the victim’s phone.
  • This is of concern to original equipment makers (OEMs) and retailers because the compromise of mobiles in the supply chain could have a significant impact on customer loyalty and trust in the brand. Mainly affecting lower-tier smartphones bought in Asian and African countries, this is the second significant example of pre-installed mobile malware that Lookout has found on phones in 2014.
  • Researchers said this signals a potential shift in cyber-criminal strategy towards distributing mobile malware through the supply chain.

Read more at Computer Weekly