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Nasdaq takes you inside the Silicon Slopes Tech Summit in Salt Lake City, Utah as we sit down with some of the most prominent innovators rewriting tomorrow. To watch the interview with Indy Chakrabarti, click here.
Jedno miejsce do zarządzania wyspecjalizowanymi wykonawcami potrzebnymi liderom najnowocześniejszej inżynierii przemysłowej.
Nasdaq takes you inside the Silicon Slopes Tech Summit in Salt Lake City, Utah as we sit down with some of the most prominent innovators rewriting tomorrow. To watch the interview with Indy Chakrabarti, click here.
A network between a business and its suppliers used to produce and distribute a specific commodity is called a supply chain. Supply chain management is the overseeing of that entire production and distribution flow to maximize quality, customer experience, and profitability.
It sounds simple but managing a supply chain can have its challenges. Here’s why: potential risks. Every supply chain comes with a diverse set of potential risks that can hurt your workers and your wallets.
Why is supply chain management important?
Supply chain management’s ultimate goal is to take a complex scope of business activities and transform them into strategic capabilities, aligned processes, and stronger relationships—improving an organization’s performance and competitiveness.
One of the ways to do this is by reducing incidents and worker liabilities. From entertainment to construction to the airline industry, safety hazards are everywhere—but they can be prevented and prepared for if they do occur. Worksites are safer when workers have greater visibility into safety practices, and when companies have only the most qualified and trained workers on site.
By managing the supply chain, companies can cut excess costs and deliver products to the consumer faster. When production is seamless and error-free, the product is made and packaged at a much faster rate than if there were faulty/dangerous working conditions.
Having a supply chain management process in place also helps companies build relationships with a network of contractors and suppliers. When you have an effective management system in place, your process can help vet the appropriate people for the job who are highly qualified and understand the rules.
How does supply chain management work?
In supply chain management, a supply chain manager coordinates all six aspects of the supply chain such as:
Planning—Plan out all resources needed to meet customer demand and deliver a product or service. Your plan should include metrics that will indicate if the supply chain is efficient, effective, delivers value to customers, and meets company goals.
Sourcing—Choose reliable and fully vetted suppliers to provide the goods and services needed to create the product. Once you have suppliers in place, you can establish processes to monitor and manage relationships.
Manufacturing—Put in place the resources required to accept raw materials, manufacture the product, test for quality, package for shipping, and schedule for delivery.
Delivery & Logistics—Coordinate orders, schedule deliveries, invoice customers, and accept payments.
Returning—Design a network or process to easily take back defective, excess, or unwanted products.
Enabling—Set up processes to monitor information throughout the supply chain and assure compliance with all regulations. Processes are needed in all areas such as finance, HR, IT, facilities, portfolio management, product design, sales, and quality assurance.
An Example of Successful Supply Chain Management:
The telecommunications FastTrac wanted lower insurance costs and better service. Through the Avetta Marketplace and our specialized relationships with over 100k suppliers, FastTrac connected with USA Telecom Insurance Providers. The relationship and proven supply chain management strategies resulted in lower premiums and better solutions for FastTrac—saving the company $10k in insurance fees and streamlining their COI approval process.
Avetta’s platform provides solutions to all these challenges. In fact, clients have reported a decline in onsite incidents using Avetta—all at a low costs and easy access to supplier information and certifications.
There are numerous benefits to having all or part of your supply chain based in Asia. Lower costs, higher and faster output, and easy market expansion opportunities are just a few of them. But like any other part of the world, Asia also carries potential supply chain risks. Knowing what they are will allow you to mitigate as many of them as possible.
Avetta’s supply chain experts know Asia’s supply chain risks and the consequences for companies whose supply chains pass through Asia and the Pacific. We’re here to inform your organization so that, with good preparation, you can have success in that particular part of the world.
Below are six potential supply chain risks in Asia.
Each country’s evolving regulatory changes and shifting industrial policies can affect the critical pace and trajectory of supply chains. Whether the legislation affects human rights, food, due diligence, the environment, or other factors, supply chains in Asia must be ready to adapt.
With Asia’s new free trade agreement, RCEP (Regional Comprehensive Economic Partnership), Asia is now in direct competition with Europe as the largest global trade player. This deal cements and expands China’s trading relationship with the world.
Another area of legislation and reform that has gained attention is in the labor sector. Some believe labor markets in Asia are too rigid or believe particular policies inhibit employment creation. Watch for the supply chain in Asia to grow and make changes to human capital policies in the coming years.
According to the World Bank, South Asia owns only 10% of the world’s automobiles but suffers 27% of the world’s traffic deaths. These deaths and injuries negatively affect the workforce, and the transportation delays negatively affect supply chain logistics. Regional security challenges also play a role, with terrorism, maritime disputes, and human trafficking all taking a heavy toll.
When it comes to occupational safety, ASEAN-OSHNET has identified and is working across its ten countries to implement various projects that include deeper research, better training, and more regular inspections. Ideally, these initiatives should improve safety and security for workers throughout Asia and make the supply chain even more reliable.
However, some experts say, “ASEAN’s impact is limited by a lack of strategic vision, diverging priorities among member states, and weak leadership.” Any safety and security concerns inevitably lead to supply chain challenges.
Water security (the availability of clean water) is a clear concern in Asia. Companies may have (1) difficulty with sick employees, (2) higher operating costs due to an inadequate supply of water, or (3) more expenses because they must pay to purify contaminated water. Unfortunately, the water conditions are likely to worsen as climate change increasingly challenges Asian countries.
Additionally, energy security (access to affordable energy) is a top concern across the continent. The changing energy expectations, evolving environmental concerns, and uptick in demand have all contributed to energy supply shortages and volatile prices.
Almost across the board, we are seeing a shortage of raw materials affecting supply chains in Asia. Here are a few of the most recent examples:
Both natural and human-made disasters seem to regularly afflict parts of Asia. Earthquakes, tsunamis, volcanic eruptions, floods, nuclear accidents, and protests are not uncommon and threaten to disrupt distribution.
There are plenty of other factors that challenge distribution in many industries ranging from mining, transportation, and logistics to consumer-facing skincare and luxury goods. The five most notable are:
Many of the above five Asian supply chain risks can be mitigated through proper vetting practices of all suppliers, vendors, and contractors along Asian supply chains. But this practice is not nearly as common as it should be.
All countries, including those in Asia, have objectives and ways of conducting business that may not only carry the potential of reputational fallout but that also may not safeguard against liability.
To avoid these risks, prequalifying partners in Asia is pertinent. Prequalifying partners significantly reduces not only known Asia supply chain risks but hidden ones that can catch any supply chain off guard and create larger problems.
All over the world, Avetta helps supply chain professionals maintain a safe, healthy, uninterrupted, and profitable supply chain from beginning to end.
How do we do that? By:
Avetta’s easy-to-use and fully configurable platform makes managing supply chain safety, sustainability, and risk easier than ever before. The industries we serve include aerospace, chemical, construction, entertainment, facility management, telecommunications, transportation, and more.
Wherever your supply chain begins and ends, trust Avetta’s supplier prequalification to mitigate significant supply chain risks in Asia.
On June 11, 2021, Germany’s government passed a supply chain act that tackles human rights issues within the global supply chain. The Act on Corporate Due Diligence in Supply Chains is one of the toughest laws to address human rights and environmental abuses. The bill will ensure German multinational corporations are held legally responsible for any human rights or environmental abuses found across their global supply chains.
The law has been years in the making.
Starting in December 2019, German Labor Minister Hubertus Heil and Development Minister Gerd Müller announced their intention to prepare a mandatory due diligence law for human rights abuses.
Then in 2020, results of a survey assessing German companies' due diligence efforts in line with the German National Action Plan (NAP) on Business & Human Rights were released.
On 12 February 2021, the ministries announced that they had agreed on a compromise for a legislative proposal.
The Act on Corporate Due Diligence in Supply Chains will officially go into action starting in 2023.
How will companies fare?
Under the act, companies in Germany above a certain size must establish due diligence procedures that prevent human rights and environmental abuses within their global supply chains and take action if they find violations at their foreign suppliers. Starting in 2023, companies with more than 3,000 employees in Germany will be affected. From 2024, the rules will expand to companies with more than 1,000 employees.
The law will fine large companies up to 2% of their annual global turnover if they fail to meet the rules and regulations. The bill enables the government to temporarily exclude from public tenders companies which received fines of 175,000 euros or more based on the new law.
Statistics from within the country suggest that the first stage of this regulation rollout will affect 900 companies, while the second stage will put 4,800 companies under the spotlight.
Human rights laws on a global scale
More countries are putting pen to paper and developing strict laws that punish companies who violate human rights. In Canada, the House of Commons Bill C-423 was introduced in 2018 to fight modern slavery. Although the bill failed, it helped pave the way for another landmark bill passed in early 2020 that covers both child labor and forced labor. The Modern Slavery Act, or Senate Bill S-211, includes an amendment that prohibits the import of forced labor and child labor-made goods in the country.
According to a 2018 report from the UN’s International Labor Organization (ILO) and the Walk Free Foundation based in Australia, around 40.3 million people are engaged in some form of modern slavery, which is three times the figure witnessed during the transatlantic slave trade.
Avetta is a member of the United Nations Global Compact and embraces the Ten Principles that address human rights, ethical labor, environmental concerns, and anti-corruption. By utilizing Avetta’s supply chain risk management solutions, businesses can focus on ethical and transparent business practices—helping eradicate modern slavery from their supply chain while also creating a healthier workplace.
One thing’s for certain, in this otherwise entirely unpredictable world of supply and demand: companies looking to succeed in commerce today can’t do it alone.
Never before has there been a more pressing need for suppliers, manufacturers, distributors and retailers to reach out to their universe of vendor partners that make up global supply chains. Customer demands for flawlessly reliable service are intensifying, and can’t be met without the cooperation and support of every stage that’s required to get product to market.
So when a buyer of materials, products or services encounters an especially valuable provider, it’s important to recognize that entity. Hence our annual focus on “100 Great Supply Chain Partners.”
The value of the list lies in the criterion for inclusion: vendors must be nominated by their customers. Such testimonials are the true measure of whether a company is living up to its marketing and P.R. claims. They tell us how providers are functioning in the real world.
What makes a “great” supply chain partner? Over the years, we’ve consistently identified 10 characteristics that make vendors stand out from the crowd. They’ll be familiar to anyone who manages global supply chains, or for that matter any type of business: reliability, service excellence, value, knowledge of the customer’s business, problem-solving skills, an attitude of continuous improvement, solid after-sales support, a positive “can-do” attitude, global reach, and strong leadership.
The crises of the last year and a half have only served to underscore the need for these stellar qualities. Businesses that made it through the pandemic and subsequent economic freefall did so in large part by relying on their networks of trusted vendors. Often they would be asking providers for a degree of loyalty, reliability and service that was unimaginable prior to the arrival of COVID-19. Even as the virus is subsiding — and at this moment, we’re not entirely certain that it is — the requirements for acceptable service are only growing more intense. Many of the shopping patterns and expectations that end-customers adopted during the pandemic are permanent. The omnichannel is here to stay. E-commerce will continue to grab ever-larger portions of retail sales. Sellers’ ability to deliver orders within a day or two will be taken for granted. Innovations in technology, especially in the areas of analytics, automation, digitization and artificial intelligence, will proceed apace.
Our annual issue on 100 Great Supply Chain Partners offers more than a list. In these pages, you’ll find a variety of actual case studies that drive home the nature of true partnerships in difficult times, and offer valuable lessons for others to follow. Drawn from testimonials by nominating businesses, they range over multiple industries and a wide variety of products and services. But all display the kind of attention to service that’s key to successful partnerships today.
Businesses looking to survive the next round of disruptions — and who can say what form those will take? — will continue to grapple with the challenge of ensuring supply chain resilience. They’ll be doing it with the help of solid partnerships. Global supply chain management is, after all, a team sport, and the contribution of each player is vital. Winning in the most challenging of times depends on recruiting partners that are nothing less than “great.”
This year's 100 Great Supply Chain Partners:
Orem, UTAH — July 19, 2021 — Avetta®, the leading provider of supply chain risk management software, announced today the acquisition of Australia-based Pegasus has passed regulatory approval and is now completed. Based in Newcastle, NSW, Australia, Pegasus is a leader in worker competency management software and services.
The combination accelerates Avetta’s global growth strategy and creates the largest provider of supply chain risk management and compliance solutions with 150,000+ suppliers and over 4 million managed workers.
“We welcome the Pegasus employees and customers to the Avetta team,” said Arshad Matin, Avetta CEO and President. “We look forward to combining our efforts in both supply chain risk and worker management to significantly grow our business throughout the world and delight our customers with solutions that best manage workers, improve safety and increase sustainability.”
As previously announced, the Pegasus offices will become the base of operations for Avetta in Australia and New Zealand. Pegasus CEO, Adam Boyle, will lead the Avetta team toward further expansion in the Australia-New Zealand (ANZ) market. Boyle and current Pegasus investor, Accel-KKR, are now equity investors in Avetta.
“NSW has a long history of technology success and leading the charge in the digitisation of businesses across Australia,” said the Hon. Stuart Ayres MP, NSW Minister for Jobs, Investment, Tourism and Western Sydney. “The history and success of Pegasus is a testament to the strength of innovation, not just in major cities but also in regional areas like Newcastle. It's proof that the right idea can come from anywhere.
“We have an incredible depth of talent in NSW, however we need to continue to foster, cultivate and grow this pipeline to ensure our industry thrives. Businesses such as Pegasus are at the forefront of nurturing this talent, and the acquisition by Avetta represents an excellent opportunity to build on its success.”
With Pegasus technology, Avetta offers market leading worker competency management, induction and learning management, supplier prequalification, site access and asset management to its solutions.
“The greatest benefit of Pegasus has been the personalised service, efficient team and holistic approach to our workforce management,” said Talan Breaden, Manager - People & Safety at Aeris Resources. “Pegasus gives us the visibility and control to effectively manage our contractor compliance, workforce training and site access.”
Chris Taylor, Head of Safety and Wellbeing at Hilton Foods added, “We have found that by using the Pegasus System the ability for our business to monitor competence of both individuals and businesses has improved dramatically and at the same time gives us assurance that we only hire those that meet our safety standards.”
Avetta’s technology platform, Avetta Connect™, helps companies worldwide manage risk and build resilience in their supply chains – from increasing visibility within the network to ensuring safety and sustainability. The Avetta Marketplace provides suppliers and contractors deep discounts on insurance and safety-related products and services. The company is majority-owned by Welsh, Carson, Anderson & Stowe with key investments from Technology Crossover Ventures, and Norwest Venture Partners.
Avetta offers a configurable SaaS-based solution that assists organizations – both large and small – in managing supply chain risk across a variety of disciplines. Avetta is building the world’s most intelligent supply chain risk management network to advance clients’ resilience, sustainability, worker competency and safety programs. Avetta leads the world in connecting leading global organizations across industries, including telecom, construction materials, manufacturing, mining, facilities management, high tech and energy with a qualified and vetted workforce among suppliers and contractors.
We contribute to the advancement of our clients’ sustainable growth by keeping workers safe and protecting supply chains from a wide range of potential risks through trusted contractor prequalification, worker safety training and monitoring, regulatory compliance, insurance/financial stability and other areas of risk. Avetta serves more than 500 enterprise companies and 150,000 suppliers across 120+ countries. Visit https://www.avetta.com/ for more information.
About Welsh, Carson, Anderson & Stowe
WCAS is a leading U.S. private equity firm focused on two target industries: technology and healthcare. Since its founding in 1979, the Firm's strategy has been to partner with outstanding management teams and build value for its investors through a combination of operational improvements, growth initiatives and strategic acquisitions. WCAS has raised and managed funds totaling over $27 billion of committed capital. For more information, please visit www.wcas.com.
Accel-KKR is a technology-focused investment firm with over $10 billion in capital commitments. The firm focuses on software and tech-enabled businesses, well-positioned for topline and bottom-line growth. At the core of Accel-KKR’s investment strategy is a commitment to developing strong partnerships with the management teams of its portfolio companies and a focus on building value alongside management by leveraging the significant resources available through the Accel-KKR network. Accel-KKR focuses on middle-market companies and provides a broad range of capital solutions including buyout capital, minority growth investments, and credit alternatives. Accel-KKR also invests across a wide range of transaction types including private company recapitalizations, divisional carve-outs and going-private transactions.
Mark Fredrickson, 801-806-0161
Scott Nelson, 801-850-3363