Category Archives: Sustainability

Integration Point Takes Trade Compliance to a New Level

The last time we reviewed Integration Point, one of the twenty-one stops on the 2008 Sourcing Maniacs Vendor Tour, we discussed their global trade solutions and told you they provided another way to get your trade data in order. In that post, we told you about their extensible modularized web-based platform that has effectively solved the core customs, security, and classification challenge as well as the free trade / secure trade zone challenge with solutions that address import and export classification (HTS codes), import documentation requirements, export documentation requirements, C-TPAT, AEO, denied party screening, FTA qualification, duty deferral, customs warehousing, customs control processing, and advance security filing – they have most of what your average multinational based in the US or the EU needs. With regards to three main challenges of global trade — customs, security and classification; free trade / secure trade zones and agreements; and regulatory compliance — they had two nailed.

Since that post, and the Maniacs’ post that followed, they have tackled, and introduced a rather comprehensive, and flexible, solution for compliance and risk management that provides a secure communication channel between you and your supply chain to gather any information you require and apply a risk-based assessment to it. And while the feature set is not yet as rich or as deep as the vendors who tackle compliance and risk as their primary focii — like Aravo, CVM Solutions, Hiperos, Rollstream, SupplierSoft, and others — it is more than sufficient for the majority of global trade organizations that do not yet have an appropriate solution at their disposal.

Like many tools on the market, the solution is survey-based, and allows the user to construct their own surveys for C-TPAT, AEO, SSER, PIP, EMCP, Product Safety, Export End Use, Internal Compliance, Training, or any other compliance initiative, regulatory or otherwise, that they want to track. Each question can be yes/no, multiple choice, check-box list, or list, and lists can have attachments. Each question can be categorized, departmentalized, regionalized, assigned to an industry, given an importance, assigned to a port, assigned a vulnerability, as well as given a type. The questions can be combined into sections, which in turn can be combined into surveys, which can be sent to suppliers, who can then assign each section, or each individual question, to an authorized representative with access to the appropriate information. They can be set up as recurring (as some initiatives, such as C-TPAT have to be re-affirmed yearly), and previous answers can be provided, or hidden to insure a supplier doesn’t just “check the box” without reading the question. In addition, the questions can be formulated in German, Spanish, French, Italian, Japanese, Korean, Thai, or five flavours of Chinese as well as English to support your global supply base. And the system can be configured to send automated reminders to suppliers if they don’t answer in a timely manner, and buyers to let them know that a supplier may need to be contacted.

The solution is integrated with Integration Point’s Supplier Master which allows you to maintain a complete profile for each partner in your supply chain. Each partner, which can be assigned multiple types (such as distributor, freight forwarder, manufacturer, trucking carrier, etc.) can be associated with the compliance programs relevant to it. As a result, your survey can be distributed to all appropriate partners with a single click as well as to predefined partner lists. E-mail, and templating capability, is integrated, and a buyer can choose, and customize, the e-mails to send on survey launch, on reminder, and on completion.

The reporting, which consists of six types of built in reports, is basic, but gets the job done. It allows you to query the status of each survey, against each supplier, to determine which suppliers responded to questions in a manner that implied risk, which questions elicited the most responses of a risky nature, and the overall risk score (determined via user-defined weightings) by survey by supplier, by supplier, and by survey. And if you don’t like the built in reports, you can roll your own with their open query feature that will allow you (or a member of their services team) to define any report you want by way of custom select statements.

Finally, the configurable entry screen allows you to customize the dashboard to insure that you see the relevant data that you need to address, and not data that will lull you into a false sense of security. You can configure it to display the partners with highest risk, the partners who have not answered the most recent survey(s), the risk rating of the most recent surveys, etc. in addition to recent answer activity, sending activity, and a generic statistics summary.

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Is a Clean City in Your Future?

I don’t care how green your city claims to be. Unless you follow São Paulo’s lead and ban outdoor advertising, you’ll never be green. Until I can walk down a street without having my eyes and ears constantly assaulted by product advertisements, you’re chalk full of noise pollution and no amount of greening is going to fix that.

To see my point, compare these images (from eduadoZ and katedubya) from ‘Clean City’ with the image of Las Vegas below (from eircell.ie). What looks cleaner to you?

 

The Probability of Supply Chain ROI Must Be Considered

As per this recent editorial by Dan Gilmore over on Supply Chain Digest, you can’t overlook the probability of success when considering the ROI of a supply chain project. A 10X ROI isn’t a 10X ROI until the returns and identified and realized. If the new system doesn’t work, or the assessment doesn’t turn up the expected savings, then there is no ROI. And the chances of this happening are dependent upon the probability of success.

Therefore, before you give a project a green light, you need to understand the probability of success. Because a 10X ROI probably isn’t worth pursuing if there’s only a 20% chance of success, especially when you’re sitting on a 5X ROI project that has a 90% chance of success. If you have a lot of options, a good rule of thumb for zeroing in the ones that should be given the most consideration is to multiply the probability of success by the expected ROI and focus on those with the modified ROI. For example, given the above two scenarios, the first one has a modified ROI of 2X (since only one in five similar efforts would succeed) and the second has a modified ROI of 4.5X ROI (since nine in ten similar efforts are expected to succeed).

The reality is that there are probably a dozen high-probability ROI projects you can do right now, no use expending your resources on the wrong one.

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Sustainability Took Centre Stage in 2009

I was glad to see a recent article on Industry Week last month that covered the recent study by McGraw-Hill construction, sponsored by Siemens (and available on the Siemens Building Technologies site), that found that three out of four firms viewed sustainability as consistent with their profit goals.

The study, which also found that:

  • 75% of firms expected green practices would reduce energy,
  • 70% of firms expected green practices would retain and attract customers,
  • 64% of firms expected green practices would provide market differentiation, and
  • 58% of firms expected green practices would serve the financial performance of the company

is dead on. Reduced energy consumption saves money. Market differentiation attracts more customers. More customers increases revenue. All of this adds up to more profit. Basically, what us bloggers have been telling you for years is true. Sustainability is more than just being green … it’s keeping your firm around for the long haul. For ideas on how to get started, check the SI sustainability archives or take a trip over to Tim Albinson’s 2Sustain.

After all, as per this recent Strategy+Business article, Green Is A Strategy. Look what Ecomagination did for GE … over $100 Million in cost savings to the bottom line and a portfolio of 80 new products and services that generate over $17 Billion in annual revenue. And with 80% of workers wanting to work for a company or organization that makes the environment a top priority and 67% of currently employed personnel planning to look for new opportunities when the economy picks up, your business could be in serious risk if you’re not green.

If you don’t know where to begin, the Strategy+Business article has five steps to get you started.

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Google may have ended voting on Project 10100 …

… but that doesn’t mean that you can’t change the world!

If you can come up with something that:

  • improves the Community
    and connects people, builds the neighbourhood, and protects unique cultures
  • increases individual Opportunity
    and lets people provide for themselves and their families
  • reduces Energy consumption
    and helps move the world toward safe, clean, and inexpensive energy
  • sustains the Environment
    and promotes a cleaner and more sustainable global ecosystem
  • improves Health
    and helps individuals lead longer and healthier lives
  • furthers Education
    and helps people get access and
  • ubiquitizes shelter
    and ensures everyone has a safe place to live

then, even without Project 10100, you too can change the world.

And if you’re not in it for the money, why not take part in the IEEE Humanitarian Technology Challenge (HTC)? The HTC is an innovative, collaborative endeavour that will develop and implement technological solutions to selected humanitarian challenges in developing countries. It’s mission is to create sustainable, scalable, and adaptable solutions that can be implemented locally within the environmental, cultural, structural, political, and socio-economic conditions that will

  • generate reliable electricity,
  • connect rural district health offices with central facilities, and
  • generate and tie individual ids to health records to provide potentially life-saving access to accurate health information for remote, mobile populations in underdeveloped nations.

Getting involved is easy. Just request access to the online collaborative platform or contact one of the leaders of the movement. For example, in Canada you could contact Alfredo Herrera (Ottawa) and in the US you could contact Narendra Mangra (Washington, DC). You can find more leaders on Linked-In or contact your local IEEE section to help you find someone closer to you.

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