Monthly Archives: May 2010

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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Supply Chain Calibration

The scientific definition of calibration is to check, adjust, or standardize a measuring instrument, usually by comparing it with an accepted model. In a lab, instruments must be calibrated regularly if they are to yield accurate measurements.

The same holds true for supply chains. Regardless of how much effort is put into supply chain plans, systems or measurements, the plans, systems and measurements will have to be calibrated from time to time to keep them running smoothly. But when should you calibrate?

A recent article in Design News had some good tips on “when to calibrate”. Basically, you calibrate when:

  • Measurement varies from observed results or results seem unusualFor example, your system records 90% on time delivery, but your warehouse staff are claiming the number is closer 70%. This could happen if your system only records day of delivery, and not time.
  • A disruption occursAfter a significant disruption, such as a supplier going bankrupt, which forces you to shift to a new source of supply, you’ll have to recalibrate your measurements to the new mode of operations.
  • A new high-value element is being added to the supply chainWhen you start sourcing a new product or service that’s high value, you want to make sure everything is running smooth to insure you maximize your investment.
  • A contract stipulates precise performanceEverything needs to be double checked, especially if there are corresponding penalties for non-performance.
  • Too many imperfect ordersIf the system allows a dip in perfect order performance, it needs to be calibrated to find, and fix, the failure.

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Alcatel Blames Parts Shortage for Steep Loss

Editor’s Note: Today’s post is from Dick Locke, Sourcing Innovation’s resident expert on International Sourcing and Procurement. (His previous guest posts are still archived.)

Here’s a headline supply managers don’t want to see about their own company:

Alcatel Blames Parts Shortage for Steep Loss

(New York Times)

Alcatel Lucent, which makes network equipment for AT&T, Verizon and Sprint, said Thursday that the U.S. economic recovery was accelerating so rapidly it was unable to obtain enough basic electronic parts to meet the demand of U.S. operators.

Alcatel cites supply problems as the key reason their sales declined by nearly 10 percent.

There are so many high level, advanced efforts going on in supply chain integration that it’s easy to lose sight of the basics. The most basic element of a supply strategy is assurance of supply of proper quality parts.

I see a parallel between Maslow’s hierarchy of human needs and supply management needs. It’s also known as the Maslow pyramid. Maslow believed that unless needs at lower levels of the pyramid were met, higher level needs would not be considered or addressed. I\His most basic needs were physiological. His highest need was “self actualization”. To put it simply, he said it’s hard to worry about making friends if you can’t get enough oxygen. Similarly, it’s hard to develop advanced supply management programs such as collaborative R&D, technological road mapping, quality improvement programs or lead time reduction if you can’t get enough parts to keep your lines running.

I put assurance of supply at the bottom of the supply chain need hierarchy. What’s at the top? I believe it’s the ability of the supplier to see through your need pyramid and recognize they are part of your customer’s supply chain, and to cooperate with you on meeting your customer’s needs.

What went wrong at Alcatel? I can hypothesize based on my experience as an electronic component commodity manager. The industry is characterized by wild swings between a buyers’ market and sellers’ market that last for a few years. There’s about 20 minutes of equilibrium during the transition. A lot of the ability to maintain supply when demand increases depends on the relationship the buying company maintains with their supply base during the buyers’ market.

If I were a forensic examiner I would look at how Alcatel treated their suppliers during the downturn. I know what we did and it was successful: We put in place major improvements in our ability to forecast to suppliers. We pressed hard on quality improvement programs, something our good suppliers wanted to do anyway. We got strong commitments from our suppliers not to lengthen lead time in an upturn. We didn’t alter our price renegotiation schedule so we didn’t seem to be taking advantage of the suppliers’ difficulties. In hindsight, that resulted in paying more than we had to during a downturn and less than we would have had to during an upturn. Also, (did I mention this?) we had sufficient supply at short lead times when the market turned.

Thanks, Dick. (Global Supply Training)

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New and Upcoming Events from the #1 Supply Chain Resource Site

The Sourcing Innovation Resource Site, always immediately accessible from the link under the “Free Resources” section of the sidebar, continues to add new content on a weekly, and often daily, basis — and it will continue to do so.

The following is a short selection of upcoming webinars and events that you might want to check out in the coming weeks:

Date & Time Webcast
2010-May-11

 

00:00 GMT/WET

Global Chemical Company brings SmartOps’ Multi-Stage Inventory Optimization to Supply Chain Planning and Supply Chain Analysis

Sponsor: Smart Ops

2010-May-11

 

15:00 GMT+01:00/CET/WEDT

Finally Getting the Visibility and Control You Need on All Indirect Spend!

Sponsor: Invapay

2010-May-11

 

11:00 GMT-07:00/MST/PDT

Striking the Right Balance in Your Outsourcing Strategy

Sponsor: Collabera

2010-May-11

 

14:00 GMT-04:00/AST/EDT

Does Your Cloud Have a Silver Lining?

Sponsor: Unitrends

2010-May-11

 

15:00 GMT+01:00/CET/WEDT

Finally Getting the Visibility and Control You Need on All Indirect Spend!

Sponsor: Invapay

2010-May-12

 

15:00 GMT-04:00/AST/EDT

Supplier Compliance – In The New World Of Risk & Responsibility, Cope is Not A Strategy

Sponsor: Rollstream

2010-May-12

 

10:00 GMT/WET

The Demand Driven Supply Chain — featuring The Economist Intelligence Unit

Sponsor: Oracle

2010-May-12

 

11:00 GMT-07:00/MST/PDT

Scaling from 1 to 1000 nodes in the cloud

Sponsor: TerraCotta

2010-May-13

 

9:30 GMT-04:00/AST/EDT

Big bang versus phased ERP Implementations

Sponsor: BSM

2010-May-13

 

11:30 GMT-07:00/MST/PDT

Driving Product Realization with Outsourced Collaboration

Sponsor: Product Realization Group

2010-May-14

 

11:30 GMT-07:00/MST/PDT

Strategies for Building A Growing StaffingForce Associate Network

Sponsor: Staffing Force

Dates Conference Sponsor
2010-Jun-7 to

2010-Jun-9

European Supply Chain & Logistics Summit 2010

Prague, Czech Republic (Europe)

WTG Europe
2010-Jun-8 to

2010-Jun-10

Global Petroleum Show & Conference 2010

Calgary, Alberta, Canada (North-America)

Dmg World Media
2010-Jun-9 to

2010-Jun-11

85th Annual PMAC National Conference

Regina, Saskatchewan, Canada (North-America)

PMAC
2010-Jun-15 to

2010-Jun-16

TRANSLOG

Hamilton, Ontario, Canada (North-America)

McMaster University
2010-Jun-20 to

2010-Jun-24

2010 ISTMA World Conference

Windsor, Ontario, Canada (North-America)

ISTMA

They are all readily searchable from the comprehensive Site-Search page. So don’t forget to review the resource site on a weekly basis. You just might find what you didn’t even know you were looking for!

And continue to keep a sharp eye out for new additions!

The New Polymath’s Ten Rules for Success

Vinnie Mirchandani‘s The New Polymath is a riveting read. It’s SuperFreakonomics for us technophiles. Because, for better or worse, The New Polymath (who can be thought of as a modern Leonardo da Vinci) must also be an IT guru … as it is information technology that is paving the way for a new generation of polymaths that have access to unprecedented levels of information across disciplines.

Rather than tell you that this fresh and inviting (Benjamin Fried, CIO Google) book is filled with incredible examples of passionate entrepreneurs (Marc Benioff, CEO salesforce.com), that I am inspired by this book (Maynard Webb, CEO LiveOps), or that Mirchandani is one of the few technology analysts to realize that technology doesn’t come in neat bundles anymore (Thomas H. Davenport, President’s Chair Babson College), I’m going to talk about The New Polymath’s ten rules for success which pop out at you if you read between the lines.

Why? One of the Polymath’s chronicled in Vinnie’s masterful manuscript is Brian Sommer, technology consultant extraordinaire of TechVentive and renowned ZDNet blogger, who asks “where are the 10 commandments for technology” as he struggles with the challenges of cyberethics that few dare to address. It’s a good question, and one that I believe we are not yet ready to answer. Which leads me to ask, “how do we get there”? Well, the first step is to obviously become learned, and successful, polymaths well equipped to ask, and debate, the question. To this end, we need a guide … a guide that, if you dig deep, is found within Vinnie’s terrific tome. To get you on your way, and to inspire you to (pre) order your own copy of The New Polymath, I give you:

The New Polymath’s Ten Starting Rules for Success

(because, in reality, there are more than ten … but these are the biggies).

  1. 1-1-1Adopt salesforce.com’s 1-1-1 model: 1 percent employee’s time; 1 percent equity; 1 percent product donation. A true Polymath operates in his community, not out of it, and makes a difference.
  2. 80 for 20Aim for solutions that deliver 80% of the value of previous solutions for only 20% of the price. A new Polymath is about true innovation, not overstated renovation.
  3. Invisible UIIf your product requires a manual, it’s not a product at all. A true Polymath produces solutions with UIs so seamless and so obvious that no manual is needed.
  4. TraceabilityEvery component can be traced back to the source … even if it’s software. (And if it is software, every data element can be traced back to the source.)
  5. Keep ScorePolymaths are responsible and drive for sustainability … to the point where they keep track of how well they are doing and how much better their inventions are compared with predecessor technology. If it’s not more environmentally friendly (and more cost effective, because true green keeps more green in your wallet), it’s not revolutionary.
  6. SemanticsIt’s the age of “big data”, and to make sense of it all, we need to find the data that is relevant to us.
  7. Decisions, Not DataBecause, in the end, the entire point of finding the semantically relevant data is to enable us to make better decisions than we could before.
  8. Adopt the “Shamrock” It’s Lucky for a ReasonA “shamrock” organization, as envisioned by Charles Handy, is one that encompasses “core management, a long-term but contractual talent pool, and a transient, flexible workforce”. We are in the age of networked person, who is used to working on the move, and tomorrow’s polymath’s will be flexible at the core.
  9. TiaSTechnology-is-a-Service. A Polymath moves beyond SaaS (Software-as-a-Service) and TaaS (Technology-as-a-Service) and embraces the concept that, like power and water, information technology must be delivered only as a service in the world of tomorrow. Just like the utilities deliver our power and water, tomorrow’s technology enterprises will deliver our apps, data, and information on-demand as that is what is needed for businesses to truly reach the next level of operations, as technology is not the core competency of most businesses that make use of it today.
  10. The Turing OathBrian Sommer notes that we need a Hippocratic Oath for technology, and I agree. We all need to agree to respect and uphold the privacy of our users and their data to the utmost above all else. And I’m calling that the Turing Oath, after Alan Turing who gave us the first test to determine whether a machine had reached intelligence (and, would thus, need to be instilled with ethics from the get go … and, hopefully, the the three laws of robotics.)

I strongly encourage you to read Vinnie’s groundbreaking debut into the world of publishing (other than his prolific blogging over the years over on Deal Architect and New Florence. New Renaissance.) and do what it takes to become The New Polymath. The world of tomorrow needs you, and in fact, so does the world of today. If, like the polymaths chronicled in this book and Nathan Myhrvold (who was the cloth the new polymaths chronicled in the book were cut from), I encourage you to join the Humanitarian Technology Challenge. The world needs you!

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