CYBER SECURITY A NEW AND GROWING THREAT FOR SUPPLY CHAINS

CYBER SECURITY A NEW AND GROWING THREAT FOR SUPPLY CHAINS

Cyber security is an increasingly dangerous threat often overlooked by supply chain professionals, said Dennis Omanoff , senior vice president and chief supply chain offi cer at McAfee, at the Focus11 Conference.

Omanoff made a presentation during a special Global Government Strategies to Achieve Cyber Resilience session composed of government IT leaders from around the world, which attracted about 3,000 customers, partners, prospects and employees.

Concerns continue to rise about the injection of viruses into high-tech hardware products during their journey from manufacturing sources to customer delivery, especially to government agencies. “More than natural disasters, fi nancial instability or political upheavals, what keeps me up at night is the fear that bad guys are injecting bad stuff into products that can disrupt, bring down or steal confi dential information from networks,” said Omanoff .

Particular concerns revolve around high-tech products that are plugged into or integrated with cyber networks. Omanoff cited statistics showing that McAfee reviews about 100,000 potential malware samples per day, identifi es over 55,000 new, unique pieces of malware per day and identifi es about 2,000,000 new malicious web sites per month.

Omanoff advised that supply chain professionals charged with manufacturing and delivery processes should look beyond traditional threats such as tsunamis, demand volatility or fi nancial degradation and take extra precautions to ensure that technology products in particular are safeguarded from viral attacks.

At McAfee, a number of strict measures have been put into place to protect and prevent the infection of products, especially hardware-assisted security systems such as fi rewalls, mail and web security network appliances, risk and compliance, cloudbased networks and intrusion detection and prevention. For example, all of McAfee’s suppliers must have an information security policy in place for data loss prevention and system control that provides complete protection of both network and host leakage. “Today, the adulteration of data or the loss of intellectual property should be center to every company’s core risk program, and that includes the supply chain community.”

“Compromising a company’s IP can jeopardize an entity’s competitive advantage, cut into market share and even endanger our customers’ reputations. The sharing of data from McAfee to our suppliers is important for new product development, continuous improvement of our product, elimination of customer issues and the ongoing growth of product lines.”

In addition to strict qualifying standards for its suppliers, McAfee has architected a global supply chain operation where component parts are secured via distribution partners from multiple locations and then assembled, converted into fi nished products and shipped by trusted sources chosen by customer preference. “We’re able to obfuscate the trail of the fully assembled product so that it’s nearly impossible to know beforehand where it’s headed, such as an energy grid, nuclear power plant or government agency.”

MAERSK LINE APPOINTS COUNTRY MANAGER FOR THAILAND

Maersk Line has appointed Henrik Jensen as its country manager for Thailand. In this role, Jensen will develop and execute the country’s business strategy, oversee sales, operations and customer service. Jensen is based in Bangkok. He reports to Thomas Knudsen, the regional head of Maersk Line in Asia Pacifi c.

Jensen brings with him 20 years experience in the liner shipping industry, having held senior positions in Africa and Europe. He also has extensive work experience in Asia where he fi rst headed sales, customer service, and operations in Thailand from 2000 to 2003 and subsequently took on the role of line manager for South East Asia until 2008. Most recently, he was based in Copenhagen, Denmark, for three years where he fi rst led the global customer service organization focusing on customer experience and later headed a strategic project focusing on ease of business for customers.

“Maersk Line recently celebrated our 60 years of operating in Thailand. Being the leading container shipping company in the country, I look forward to building upon our strong foundation here to further develop our business in Thailand,” said Jensen.

GAC ESTABLISHES DEDICATED HUMANITARIAN AID TEAM

The GAC Group has formed a dedicated team to focus on providing vital logistics support for humanitarian aid eff orts around the world. The GAC Humanitarian Aid Team (GHAT) brings together shipping and logistics professionals based in strategic locations worldwide with wide-ranging experience in serving this important niche sector.

GAC has been delivering logistics services for the aid fi eld of operations throughout its history. In the last decade, the company has supported the work of humanitarian and development organizations such the World Food Programme (WFP), Rebuilding Iraq and leading British aid procurement NGOs. The formation of GHAT enables it to formulate and implement a unifi ed global response to better meet the unique requirements related to the fl ow of goods and materials into countries affl icted by humanitarian crises and natural disasters.

Led by Patrik Hallden, who is also GAC’s key account manager for the WFP, the seven-member strong team has combined expertise supporting aid operations spanning Europe, Africa, the Middle East all the way through to Indian Subcontinent, Asia and South America. GHAT aims to make a diff erence by using the GAC global network, local contacts and diverse portfolio of services which enables it to reach diffi cult locations and tailor solutions for each individual operation. Services for the humanitarian aid sector include chartering, freight forwarding, customs clearance, warehousing and distribution, port agency, canal transits, P and I representation, and project logistics.

“Today’s humanitarian aid business is more complex than ever before, with global sourcing at multiple origins and challenging destination points,” said Hallden.

“Our aim is to build a credible and useful role globally, working with aid agencies and their partners – both to their benefi t as well as those they seek to serve. Together, we help ensure that the muchneeded aid reaches the right people, at the right place and on time.”

APL APPOINTS NORTH ASIA REGIONAL HEAD

APL has appointed Wong Siew Loong as regional president of its North Asia business.

“Siew Loong brings with him 15 years of experience within the company. I am confi dent he is the right person to steer our North Asia business, an integral part of APL’s global liner activities. His familiarity with the reg“Siew Loong bringsion and knowledge of the trade, combined with his leadership qualities, will ensure continued customer focus and growth in North Asia,” said APL president Kenneth Glenn.

Wong will be responsible for APL’s commercial activities in Greater China, Japan and Korea. He will be based in Shanghai and will report directly to Glenn. Wong has held positions in strategic planning and investor relations since he joined APL. He was managing director of APL’s Taiwan offi ce for three years before taking on his current role as vice president of the Asia Europe Trade in 2008. Wong holds a master’s degree in economics.

KEWILL’S TRADENET PASSES QUALITY ASSURANCE TEST OF SINGAPORE CUSTOMS

Kewill’s local customs compliance software, TradeNet version 4.1, has passed the quality assurance test of the Singapore Customs, which makes it ready for roll-out to over 1,100 users in the trading community.

TradeNet 4.1 is the upgraded version of TradeNet 4.0, which incorporates the revised ASEAN Harmonized Tariff Nomenclature (AHTN), latest format and data structure by World Customs Organisation (WCO). Under the TradeNet System, the trading community submits permit applications electronically to the government bodies (Singapore Customs and the various competent authorities) for processing. If the permit application is approved, a permit message will be returned electronically to the sender.

TradeNet 4.1 is scheduled to go live on 1 January 2012. Prior to the go-live date, there is a one-month parallel run alongside TradeNet 4.0 starting from 1 December 2011.

“Given Singapore’s strategic geographical location, TradeNet is an essential component that accelerates the fl ow of global trade and logistics,” said Evan Puzey, chief operating offi cer of Kewill Asia. “Being the pioneer TradeNet developer and largest frontend TradeNet vendor, Kewill sees itself in a position to move Singapore and the global trading community towards consistent worldwide standards and global customs compliance.”

TNT APPOINTS MD FOR MALAYSIA, BRUNEI

TNT Express has appointed Chong Siang Chung as the managing director of TNT Malaysia and Brunei with immediate eff ect. Based in Petaling Jaya, he manages over 600 employees and is responsible for overall TNT operations in Malaysia and Brunei. Notably, he is the fi rst Malaysian to be internally appointed as TNT managing director since the establishment of TNT Malaysia in 1976.

Chong, who is more fondly known as SC in the industry, joined TNT Malaysia in 2003 as sales and marketing director. During his tenure as sales and marketing director, SC has led the company to achieve strong double digit revenue growth year after year, making TNT Malaysia one of the fastest growing business units in the Asia region. SC has also been instrumental in leading TNT to win the Best Brand in Logistics Solutions Provider Category for Brand Laureate Award 2008 and 2010, and two Asia Direct Marketing 360 Awards in 2009.

“SC has a wealth of experience and knowledge of the Malaysian business and under his dynamic leadership, the Malaysia team has achieved tremendous growth and built good credibility within the market. I believe he is capable in leading TNT Malaysia to achieve the company’s vision of becoming the most admired delivery company,” said Michael Drake, TNT Asia Pacifi c managing director.

BLUEHORSE’S LIFE CYCLE TOOL RECEIVES ACCREDITATION FROM SUPPLY CHAIN CARBON COUNCIL

Bluehorse Associates has received accreditation from the Supply Chain Carbon Council for their Carbonostics Lifecycle Analysis (LCA) solution. Established in 2007, The Supply Chain Carbon Council works in partnership with global innovators from the technology and strategic advice sectors to tackle the issues surrounding carbon emissions management and reduction.

Bluehorse Associates joins the Council as a preferred supplier within the program promoting the application of LCA software and methodologies to Product Level Carbon Footprinting.

“If You Can Measure It You Can Manage It.” This is the key to a sustainable supply chain. Industry needs to apply more, not less information and communications technology (ICT) to the problem of emissions management. To realize its full business and environmental value, Product Level Carbon Footprinting will need to leverage ICT that enables effi cient dynamic emissions monitoring and decisions support.

“To have a clear picture of a products’ carbon emissions output at all stages in its design and manufacture is invaluable and will allow organizations to identify where reductions can be achieved and ultimately provide this information to the end user,” said John Connors, CEO Supply Chain Carbon Council.

The accreditation of the Carbonostics LCA Tool recognizes its ease of use, functionality and transparency. In particular, Carbonostics, due to its ease of use and implementation, will open up LCA methodologies to all organizations regardless of size or industry.

SUPPLY CHAIN ANALYTICS BECOMING MORE AND MORE IMPORTANT

Capgemini Consulting, Penn State University, Heidrick & Struggles and Panalpina announced the fi ndings of the 16th Annual Third-Party Logistics (3PL) Study, examining the global market for outsourced logistics. Third-party logistics providers, or 3PLs, such as Panalpina are increasingly applying supply chain analytics methodologies. Sophisticated assessment tools and benchmarking applications are used to compare individual supply chain performance to a wider set of industry peers. The objective is to provide customers with value-added services and strategic guidance in regards to supply chain design and execution.

The report reveals that 51 percent of 3PLs provide supply chain consultancy services. However, only 11 percent of companies are getting supply chain consultancy services from 3PLs. Supply chain analytics assesses supply chain performance and identifi es ineffi ciencies in supply chain confi gurations with the ultimate objective of improving their end-to-end performance in terms of operational, fi nancial as well as managerial aspects. “Supply chain analytics can be regarded as the creation of virtual images of supply chain structures in order to describe the performance or state of an existing supply chain,” said Peter Karel, corporate supply chain analytics, Panalpina. “It is all about cutting out process waste and reducing costs.” Companies throughout the world need to become more fl exible and effi cient in their supply chains. The integration of total cost management in supply chains is becoming increasingly important on their agenda. They need to consider market volatility and the impact on indirect supply chain cost of obsolescence of stock, cost of capital, damage and loss, lost sales etc.

Companies face the challenge of not only outsourcing the execution of logistics and transportation services to 3PLs but also getting strategic consultancy on their supply chain strategy in order to focus on their core competencies.

VOCOLLECT, DEXION PARTNER TO EXTEND TRANS-TASMAN CHANNELS NETWORK

Vocollect announced its partnership with Dexion to advance the company’s voice-centric solutions further into the Australian and New Zealand markets. This partnership is the latest move by Vocollect to expand and develop new channels in the Asia Pacifi c region for a broad range of market segments, including retail, grocery, food & beverage, apparel, third party logistics, automotive and pharmaceuticals.

“Currently, Vocollect and our channel partners enable over 350,000 workers worldwide to distribute more than US$3.5 billion worth of goods every day,” said Vance Lau, vice president and managing director, Vocollect Asia Pacifi c. “Dexion’s established network in the region is a welcomed addition, as we see the undeniable synergy between Vocollect’s industry leading voice technologies and Dexion’s expertise, in particular its industrial division that is renowned for designing smart distribution solutions and integrating them into a customer’s business.”

“Dexion is excited about adding Vocollect Voice to our portfolio of paperless technologies and MHE solutions currently being off ered. We know that Vocollect Voice delivers stronger bottom line results by improving an organization’s throughput and productivity, accuracy and customer service, and most importantly, reducing overall operating costs,” said Peter Farmakis, chief executive offi cer, Dexion. “This partnership, therefore, allows us to provide voice as part of an integrated solution that includes pallet storage, materials handling solutions and paperless inventory management systems, availing our customers with the best technologies in the market today.”

Increasing the accessibility of voice to customers will reinforce Dexion’s core business objective to continually off er high quality and innovative order fulfi llment solutions for its customers. Dexion’s immediate priority is to grow and build awareness for Vocollect and its solutions, starting with Vocollect Voice’s suitability for a multitude of Trans- Tasman industries.

“Incessant pressure for higher levels of customer service, coupled with changes in buying patterns, are forcing many of our customers to review their order fulfi llment processes on an ongoing basis. We believe Vocollect Voice will help many of our customers to extract the next layer of operational savings in a cost-eff ective manner,” Farmakis said.

Lau said: “Vocollect’s solutions can be applied to a variety of operations and workfl ows within diff erent warehouse and distribution center environments. By condensing cumbersome processes into a sleek, streamlined channel that is even easier than before to learn and operate, along with the benefi ts of reduced errors and increased safety, the end result is a technology evolution that pushes companies to a whole new strata of productivity.”

The latest Logistics & Supply Chain Executive Employment Market Survey Report, produced from research undertaken by global Logistics search and recruitment fi rm Logistics Executive is available for download from the Society’s website at www.lscms.org

This is the fi fth consecutive annual report developed for the international industry served by Logistics Executive. Respondents represent a broad geographical sampling which has been expanded over previous years and spread throughout Australasia, South East Asia, the Middle East, the Indian Subcontinent and North East Asia and China.

SITE VISIT The Society has planned a site visit to LHT holdings in Singapore on 20th December. Visitors will not only get the opportunity to see how pallets are made but also view and understand the eff orts and technology employed by LTH to use 100 percent recycled products in their re-manufacturing process.

Given the tough economic conditions of the last few years, eff orts in green technology and a sustainable supply chain have not been given as much attention as in the past. Companies like LHT play an important part in these eff orts and through this outreach, LSCMS hopes to help remind members of this important element in what we do in our daily lives. Another visit is planned in February and members or readers interested in attending can contact the Secretariat at info@lscms.org

COMBINED DISTRIBUTION NETWORKS

The Society’s eff orts at promoting the use of Combined Distribution Networks in the Supply Chain has started gaining traction globally with companies such as Hersheys and Baxters using this concept to achieve lower costs and reduce their overall carbon footprint in Europe and North America.

The Society is interested in developing this concept further in the Asia Pacifi c region and would like to work with companies, industry and academia further to introduce the benefi ts of CDN. For more information on the topic, please visit our website or contact the Secretariat at info@lscms.org