2Sustain

Supply chain risk is multi-faceted, and over the past two weeks I’ve blogged about a few emerging trends in the field. First, there was the post about the need for water risk management. Then, a few days ago, I wrote about Panjiva’s updated global Manufacturer Watch List. Today, I’m going to add some more food for thought by introducing you to the latest research on political risks, as compiled by Aon Corporation, a leading global provider of risk management services, insurance and reinsurance brokerage, and human capital consulting.

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PricewaterhouseCoopers recently released new research that focuses on corporate sustainability reporting in Canada. The report analyzes data collected from a survey of 343 senior financial executives, and it offers insights about the benefits of corporate sustainability reporting, the impact of corporate sustainability reporting on investors., and the influence of Canadian capital markets on corporate sustainability reporting.

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Recent high-profile recalls (milk, peanut butter products) have put global food industry supply chains in the spotlight. So, the timing couldn’t be better for Aberdeen Group’s new research on sustainability initiatives in the food and beverage sector.

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Yesterday, Panjiva released new data illustrating that U.S. buyers are exposing themselves to significant risk by doing business with troubled manufacturers overseas. While others in the blogosphere are describing these new numbers with words like “alarming” and “stunning,” I don't feel that I can do the same. After all, I'm not shocked by the results. If you combine complex global supply chains with a worldwide economic crisis, what’s the one thing you can, and should, expect? Risk.

Sure, Panjiva’s new analysis gives us some insight into the scary depths of the problem, but the take-home message is one I’ve explored many times (see posts here and here, e.g.): now, more than ever before, you need to manage your global supplier risk so that you can effectively adapt to today’s rapidly shifting business environment.

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Congratulations to Dusseldorf-based Henkel for bringing home top honors at Wal-Mart’s Supplier Summit, held recently in Bentonville, Arkansas. Wal-Mart selected Henkel to receive the “Wal-Mart Sustainability Award” in recognition of the company’s comprehensive approach to sustainability, a commitment that, in turn, has made a significant contribution to Wal-Mart’s overall sustainability strategy.

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