The SupplyChainBrain Podcast

Apple is known for consistently maintaining a smooth-running global supply chain. But every once in a while, something blows up. That's what happened in the relationship between Apple Inc. and GT Advanced Technologies, which was contracted to supply sapphire for the new iPhone 6 screens. The deal carried enormous promise, not least because it involved manufacturing in the U.S. But it quickly went sour. Despite the existence of seven separate contracts, GTAT was unable to deliver on Apple’s demands. The reason for the failure? Depends on whom you ask. But the outcome isn't in dispute: the two parties descended into acrimony and expensive court proceedings, and GTAT ended up seeking protection under Chapter 11 of U.S. bankruptcy laws. On this episode, attorney Sarah K. Rathke, partner with Squire Patton Boggs, offers her perspective on what went wrong between Apple and GTAT. And she details the lessons to be learned from that disaster, with tips on how other manufacturers and suppliers can avoid a similar fate.Support the show

Is it feasible to scan every one of the 15 million containers that enter U.S. ports each year? With a new technology, the long-term answer might well be yes. Decision Sciences International Corp. has developed the Multi-Mode Passive Detection System, a new means of scanning containers at the port for radiological, nuclear and explosive materials, as well as contraband. The technology differs from previous such efforts in that it doesn't bombard containers or nearby people with x-rays or other types of potentially hazardous radiation. On this episode, Decision Sciences president and chief executive officer Stanton Sloane explains how the device works, how far along it is in development, how much it costs and how it would mesh with modern-day port operations. The system, he claims, solves the health, safety, logistical and political problems that, according to critics, make the notion of 100-percent scanning of containers at foreign ports impossible.Support the show

What does it take to overcome the logistics challenges of serving customers in emerging markets? The short answer: a lot. Emerging markets present manufacturers, distributors and retailers with numerous pitfalls that can break a supply chain. Some of the most important considerations are laid out in a recent paper from PwC, ''Overcoming Network Logistics Complexities in Emerging Markets.'' On this episode, we speak with Sandra Gosling, U.S. supply chain director, about the content of that report. In particular, we discuss the six most important categories that companies must consider when entering emerging markets – and hear Gosling's opinion about which one of them poses the toughest challenge.Support the show

What will the typical factory look like five years from now? Manufacturers today are undergoing a major evolution in their global sourcing strategies. No longer is it sufficient to build product in a single country that offers the benefits of low-cost labor, then distribute worldwide. At the same time, manufacturers are laboring to juggle the need for optimal plant efficiency with buyers' demands for customized product sourced close to end markets. On this episode, we hear from Pierfrancesco Manenti, vice president of research with SCM World, which recently surveyed more than 150 leaders in the manufacturing sector. They underscored the importance of flexibility, responsiveness, cost control and the hiring of workers who can perform tasks that require a whole new set of skills. In the discussion, we get a glimpse of what the factory of the future might look like, where it will be located, and how technology will revolutionize production techniques.Support the show

Global trade: Love it or hate it. But don't overestimate its impact on individual economies. Proponents of trade point to the benefits of global ''connectedness,'' while opponents damn that very thing. Asked about the actual impact of trade on domestic jobs and products, however, people tend to wildly overestimate the figures. What's more, a continuing study of trade's impact, sponsored by DHL, suggests that the world isn't quite so connected as one might think. On this episode, we talk to study co-author Pankaj Ghemawat, a professor at both the Stern School of Business at New York University, and the IESE Business School in Madrid, Spain. He lays out the study's unique and rigorous method of measuring the flow of trade, capital, people and information across international borders. And he pinpoints just how much globalization has impacted trading nations to date – with a particular focus on the ''globaloney'' that seems to accompany public perceptions of trade.Support the show

A new year, and with it a new slew of regulations and stepped-up enforcement of international trade law. Brace yourself. On this episode, we welcome back international trade attorney Peter A. Quinter, practice group chair with GrayRobinson, P.A. Formerly legal counsel at U.S. Customs' Office of the Chief Counsel of the United States in Miami, he's a seasoned expert in global trade law. As before, he joins us to present his top predictions for key developments in that area for the coming year. Among the points of discussion: tougher penalties for making fraudulent statements to Customs, increased antidumping duties, new measures against counterfeit merchandise, the evolving notion of the ''trusted exporter'', and the coming of the so-called ''single window'' for streamlined filing of documents with government agencies.Support the show

A company's reputation rests on much more than the quality of the products that it makes. Reputation can make or break a global business. And, in the age of social media, it has become a more critical element of corporate health than ever before. But maintaining a good reputation requires that companies continually monitor every aspect of their supply chains. On this episode, we hear from Viktoria Sadlovska, research director with the Reputation Institute. (Its work forms the basis of Forbes' annual Most Reputable Companies ranking.) She distinguishes between the emotional and rational factors that make up a company's reputation, and lays out seven dimensions that must be considered. She also offers advice on how businesses can craft the best possible image in the eyes of the fickle public. Hint: good supply-chain management is key.Support the show

Retailers are scrambling to offer free shipping for online orders. Is it a money-losing proposition? E-tailing has become so competitive that many online sellers today consider it essential to provide free shipping on many, if not all, of their shipments. At the same time, they are speeding up delivery to the point where customers have come to expect a one- to two-day turnaround on orders. How can both of those perks be sustained, in a business where margins are so thin? Is it simply a game of chicken, with rivals racing one another to the edge of the cliff? Our guest on this episode is Tom Barone, vice president of North American operations with eBay Enterprise. He explains why free shipping has become the price of admission to e-commerce – and why it might not be so free after all. And he discusses how traditional retailers are balancing the cost and speed of peak-season shipping, while embracing all possible channels for getting product to the consumer. ''The omnichannel,'' he says, ''is quickly evolving from nice to have to need to have.''Support the show

Is China guilty, as charged by U.S. traders, of keeping its currency artificially weak? Despite some movement upward in recent months, the value of the yuan has remained relatively low against the dollar for some time now. And the Chinese have reaped the benefits, in the form of cheaper prices for their exports. American trading interests have repeatedly called on the Obama Administration (and Bush Administration before that) to take punitive action against China for its alleged monetary hijinks. Last fall, however, the U.S. Treasury Department failed for the 12th time specifically to identify China as a currency manipulator, even as Treasury has acknowledged that there are grounds for making such a determination. On this episode, Scott Paul, president of the Alliance for American Manufacturing, explains why his group believes China is indeed deliberately keeping down the value of the yuan. He calls for retaliatory action on the part of the U.S. But would such a move trigger a trade war?Support the show

Call it the dark side of international commerce: fakes, frauds and thought thieves. Time to take action. On a global scale, companies are losing an estimated $657bn each year due to product counterfeiting and intellectual property (IP) infringement. And, with the explosion of trade over the past few years, the problem is becoming even more widespread. Previously, companies had only to worry about their finished goods being illegally duplicated and sold on the black market. Now, raw materials and key components are becoming subject to counterfeiting as well. That raises serious questions of public safety, when it comes to products such as food, jet engine parts and pharmaceuticals. Professor Michael R. Czinkota of the McDonough School of Business at Georgetown University joins us on this episode to discuss why the issue of counterfeiting and IP theft has become more serious than ever before. And he explains why he's optimistic that steps might finally be taken to curb these illegal practices.Support the show