| A global study released today by Basware, a leader in enterprise purchase to pay solutions, in conjunction with the Kelley School of Business in Indianapolis, finds that chief financial officers in organizations across the globe are shunning risk management in favor of cost cutting, and are failing to treat supply chain dangers seriously enough. |
| The current downturn is profoundly affecting businesses around the world, and The Cost of Control is the first major global study investigating the issues impacting finance and procurement. An insight into the views of 550 financial directors and CFOs from organizations around the world, the research is supported in the U.S. by Mark Frohlich, associate professor of operations management at the Kelley School of Business. Read more at www.basware.com |
| Most businesses have been affected one way or another by this current recession, particularly those companies operating a globally distributed, multi-enterprise supply chain. With all the moving parts and constantly changing markets, these organizations are now facing even more volatility than ever before, coupled with an urgent need for responsiveness. As a result, many are taking a closer look at their supply chain management strategies and determining how to manage their inventory positions at all times.Read more at www.industryweek.com |
What do securitised mortgages and manufacturing supply chains have in common? Not a lot, it may seem. After all, the art of repackaging debt is part of the arcane field of complex finance, while the business of shipping widgets round the world is a tangible, get-your-hands-dirty activity. |
But in one respect complex finance and modern manufacturing have much in common: namely their embrace of globalisation. Western manufacturing has become ever more dependent on cross-border systems of production intended to make business more efficient, by placing each stage of production in the region where it can be most profitably performed. Likewise, western finance has embraced a vision of globally integrated capital markets in the name of more efficient banking. Read more at www.ft.com |
The vast majority (85 percent) of corporate executives say they need to overhaul their approach to risk management, according to results of an Accenture study released July 6. Accenture’s 2009 Global Risk Management Study is based on a survey of 260 chief financial officers, chief risk officers and other executives with risk management responsibilities at large companies in 21 countries. |
The survey also found that companies expect new risk-related challenges as a result of the current economic environment, including more stringent regulations and increasing costs associated with growing complexity in the risk environment. Forty-one percent of respondents reported that their risk management costs have increased by at least 25 percent in the past three years, including 14 percent who reported a 50 percent rise in these costs. Read more at newsroom.accenture.com |
Somali pirates, oil prices on a roller coaster, and poison peanuts are typical of the new reality for global supply chains in these crazy, turbulent times. As businesses prepare for a new normal of hyper-volatility, the limits of the Japanese-inspired, low-tech, Lean philosophy are starting to show. The global supply chain in 2009 is a lot more than just a factory and a loading dock – today’s system of plants, distribution centers and retail outlets works more like a worldwide telecoms network than an assembly line. Add a hefty dose of supply chain risk to the mix and a tech-free Lean gospel just can’t hack it anymore. |
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CFOs Are Ignoring Supply Chain Risks as Cost Cutting Tightens
