It is an unfortunate reality that ‘freight at rest is freight at risk’ and electronics freight is among the highest at risk. The business case for securing freight along the entire supply chain is self-evident as yearly worldwide losses to businesses are in the billions of U.S. dollars according to the International Cargo Security Council (ICSC). The costs of product losses, insurance premiums and deductibles, and man-hours involved in case work also combine to be a significant amount. Added problems include re-sourcing of sometimes scarce product, price volatility, timeliness of re-delivery, and relationship problems with clients who do not receive or who cannot purchase product when expected.
Read more: Security along the Supply Chain: The Logistics of Best Practices
Supply chains have become more complex due to lean initiatives, just-in-time sourcing, global footprints, multi-tiered partners, and significant increases in coordination of forecasting and B2B processes. The benefits to these new processes are significant, but they come with increased risk of economic loss when – not if – disasters occur.
Read more: When disaster strikes: The business case for disruption risk management
While many motivating factors may be in play, one thing is certain: corporations are increasingly looking at “green” initiatives to demonstrate their commitment to the environment and sustainability. The electronics industry is no exception to this trend. Electronics manufacturers are undertaking a variety of green initiatives. For example, HP reports it will reduce its carbon footprint by 20% by 2010. Lenovo has committed to phase out hazardous chemicals from all its products by 2009 and has begun a global hardware recycling program. Motorola is a member of the Chicago Climate Exchange, a voluntary initiative to reduce emissions, and has redesigned all its chargers to be Energy Star qualified thus meeting US Environmental Protection Agency and Department of Energy standards for energy efficiency.
Read more: Focus on the Open Market: Green Supply Chains