There was an interesting article in the Korea Times indicating that Korea’s premier high tech manufacturer LG Electronics has concerns relative to supply chain vulnerability. The article points out that risks relative to supply chain fraud tend to rise as corporate supply chains become more extended as well as complex. Companies increasingly have become the target of simple theft, misrepresentation of inventory, counterfeiting and piracy. According to this article, LG who has 85 percent of sales originating from overseas markets. is now placing more emphasis on “intensified supply chain management” LG’s efforts include the 3P’s- Best Process, People, and Partners, along with improved information technology tools.
While better access to information through advanced technology can certainly pay dividends, I would suggest that LG Electronics and other internationally focused companies continue to place more emphasis on business process control, supply chain partner collaboration and monitoring processes. There is ample evidence that initiatives that address the simultaneous improvement of management practices and information technology pay far higher dividends in the long run. Supply chain vulnerability does not just concern members of the internal supply chain organization, but should also include a broad cross-functional and cross-company effort.