It exists in the background. When it works seamlessly, you wouldn’t know it was there at all. But the supply chain really is the unsung hero of the organisation.
Alice Catherine Evans. Dr. Megan Coffee. Gunner the Dog. Rick Rescorla. Heard of any of these individuals? They are just some of the unsung heroes from the past 150 years. They have all made a huge difference to the world, and arguably deserve much more recognition.
While maybe not at the same level, the same could be said for the organisational supply chain. It exists in the background. If it works seamlessly, then people don’t really take any notice of it. But, without it, organisations would grind to a halt. It really is the unsung hero of an organisation (as are all the people working in it!).
This week, supply chains have been in the news for the right reasons. The US Aerospace and Defence Industry and Domino’s Pizza were just a couple of organisations to highlight the good work their supply chains were doing.
However, it wasn’t all good news, as supply chains came under fire again for not doing enough to combat modern slavery.
SMEs the Unsung Hero for A&D
The Farnborough International Airshow, held in the past week, presents a fantastic opportunity of organisations further down the supply chain to present their new technologies and ideas. This year it also allowed the US A&D Industry the chance to celebrate its SMEs.
According to data from the Aerospace Industries Association (AIA), the US A&D Industry has exports totalling $142 billion last year. Of that, the supply chain generated 58 per cent of the exports, a whopping $78 billion.
The numbers go to show the strength of the supply chain companies, as well as the global partnerships they have built across the world. The importance of the supply chain SMEs is clear to the US A&D industry too. They have led the way in building a solid reputation of US technology and innovation across tens of thousands of projects worldwide.
AIA CEO David Melcher also sees a bright future of the SMEs. With trade agreements in place, Melcher argued that “small- and medium-sized companies can generate exports for decades more to keep this equipment operating effectively and efficiently.”
Supply Chain Success
Another unsung hero, at least until this week, was the supply chain for Domino’s pizza. The fast-food giant announced a 12 per cent increase in sales in the second quarter of 2016, beating profit and revenue forecasts.
The company attributed increased supply chain sales, including increased volumes and store growth, as a key reason for this. The supply chain sales themselves also saw a 12 per cent increase in the quarter.
However, the week wouldn’t be complete without stories of what organisations need to do to combat slavery in their supply chains. A report released this week showed that the ICT industry has plenty to do in this area.
KnowTheChain compared 20 ICT companies, including Apple, HP and Samsung, on their supply chain practices. The results were not pretty, with the majority of the organisations scoring under 50 (out of 100) for efforts to eradicate forced labour, and how transparent their efforts were in doing this.
However, according to a business leader in the cosmetics industry, eradicating forced labour and slavery completely is an on-going battle. Simon Constantine, of British retailer Lush, stated that even though Lush is willing to pay more for ethically sourced goods, the company has still struggled to keep up.
Constantine said, “With the amount of work you need to do to stay on top of things, and everything changing so rapidly…I would never be comfortable saying our supply chain is 100 per cent clean.”
But with new regulations increasingly putting the onus on companies to ensure their supply chains are clean, it’s a battle that is set to be fought just as hard as ever.
Is your supply chain an unsung hero? Why not let us know and we can help you tell your story?
We’ve been pouring over the news and digital media to make sure you don’t miss the key headlines this week…
Brexit Causes “Dramatic Deterioration” in UK Economy
- The decision by UK voters to leave the EU has led to a “dramatic deterioration” in economic activity in Britain.
- Markit’s Purchasing Managers Index shows a fall in economic output to 47.7 in July, the lowest since the end of the Global Financial Crisis.
- Both manufacturing and service sectors saw a decline, though exports were up due to the weakening pound.
- Chris Williamson, Chief Economist at IHS Markit, said the downturn has been “most commonly attributed in one way or another to ‘Brexit’.”
Read more at The BBC
Turkish Procurement Programme Delays
- The failed coup attempt to overthrow the national Government in Turkey will delay multi-billion dollar procurement programmes.
- Members of the coup took senior army officials hostage last weekend, with their actions leading to over 200 deaths.
- Although incomparable to loss of life, senior officials have admitted that procurement is “nowhere in the military command’s priority list.”
- It has raised concerns that this will leave the army short of operational resources in the fight against ISIS.
Read more at Defense News
Rio Olympics Highlights Cross-Border Procurement Risks
- The Rio Olympics, due to start in a few weeks, represents a massive opportunity for cross-border commerce.
- The organising committee has already procured more than 30 million goods, including sports equipment and accommodation items.
- However, organisations still need to be aware of the potential risks, such as logistical issues, and currency exchange rate fluctuation.
- Reggie Peterson, Director of Indirect Supply Programmes at AmeriQuest, highlighted the importance of carrying out due diligence for organisations before getting involved.
Read more at PYMNTS.com
Facebook Drones Close to Taking Flight
- Drones, built with the purpose of bringing connectivity to remote regions of the world, are closer to taking flight.
- Facebook-owned British company, Ascenta, has run a successful test of its drones in the skies above Arizona.
- The the solar-powered drones will be airborne for months at a time, beaming signals down to users on the ground.
- The project is in competition with Google’s ‘Project Loon’, which aims to use high altitude balloons for the same purpose.
Read more on The BBC