Page 327 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Logistics and Supply Chain Management

Notes Self Assessment

Fill in the blanks:
9. …………………… of the financial performance could be considered the overriding measure
of the appropriateness of supply chain configuration.
10. …………………… can be employed to provide assessment through finance, customers,
processes and learning and growth areas.
11. Related to collaboration is the concept of …………………… utilization.

12. With increasing financial, customer service and environmental demands, this has the
potential to become an enabler to manage the supply and demand of ……………………

14.4 Social Performance

Because of numerous instances of financial mismanagement by major corporations, in 2002 the
U.S. Congress passed the Sattanes-Oxley Act (SOX). Although the focus of the law is on financial
reporting by corporations to their shareholders, it became apparent soon after its enactment
that it also has important implications for logistics and supply chain management, especially
with respect to how performance is measured and reported.
14.4.1 Supply Chain Security

Supply chain security refers to efforts to enhance the security of the supply chain, the transport
and logistics system for the world’s cargo. It combines traditional practices of supply chain
management with the security requirements driven by threats such as terrorism, piracy, and
theft. Some analysts have raised concerns about supply chain security overreach.
Typical supply chain security activities include:

 Credentialing of participants in the supply chain
 Screening and validating of the contents of cargo being shipped
 Advance notification of the contents to the destination country

 Ensuring the security of cargo while in-transit via the use of locks and tamper-proof seals
 Inspecting cargo on entry
International trade is one of the key drivers of global economic growth. In today’s globalised
world, the cargo supply chains are complex and involve a great number and variety of parties.
Unfortunately, these supply chains are also vulnerable to exploitations such as theft, pilferage
and in the worst case scenario, exploitation by terrorists to further their own ends. Guarding
against such scenarios is thus of vital importance as the global trading system cannot afford the
consequences of a destructive attack.

!
Caution To guard against such exploitations, the supply chain has to be secured. Supply
chain security can only be achieved by looking at supply chains in total, and not by
focusing on individual nodes and links in isolation.

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