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Recently, Overhaul shared the stage with a panel of supply chain leaders at the Gartner EMEA Supply Chain Symposium in Barcelona, Spain.
Hosted by Loraine Bout, Director Global Supply Chain Intelligence, the panel covered EMEA-specific risks, the role of technology in risk prevention, and more. Panelists included Desmond Heidt, Sr. Global Supply Chain Security Manager at Dyson, Brendan Ryan, Consultant at Johnson & Johnson, and Juan Gutierrez, Google’s Global Transportation Manager – EMEA LEA.
Here’s what they had to say about supply chain risk management in EMEA.
Gartner’s Supply Chain Symposium – EMEA’s risk landscape
Cross-border crime
Supply chain threats are a global problem, but several of these risks are unique to EMEA. For example, the region’s layout makes it especially susceptible to cross-country crime. A criminal can easily steal goods in one country and essentially make them disappear in another.
“Say you’ve got transport which starts in the Netherlands and goes through Germany,” said Heidt. “It should go to Italy, but if the product gets stolen in Germany and resold in France, then what? We’ll report it in Germany, but the police will say it started in the Netherlands and was supposed to go to Italy, so they don’t have anything to do with it. The French police may identify the seller but they’ll also say the crime didn’t happen there.”
“Law enforcement is different from county to country,” added Gutierrez. “So, collaboration comes very much at the heart of this. I am a true believer in data, [and] every effort we put in place needs to be a data-driven decision. This not only speeds up the whole process of implementation of any mitigation plan [but is also] the most cost effective way to get there.”
In this sense, visibility into cross-country risks is not just about preventing theft. It can also equal cost savings, help with inventory management, and more generally improve supply chain operations. At the same time, cross-border crime is far from EMEA’s only concern, with some risks being far closer to home.
Law enforcement is different from county to country. So, collaboration comes very much at the heart of this. I am a true believer in data, [and] every effort we put in place needs to be a data-driven decision.
Insider information
According to a Gallup supply chain study in Germany, 20-40% of employees are disenchanted with their organization. They don’t see long-term potential at their company, feel unfairly compensated, or otherwise lack corporate loyalty. Sometimes, this can lead them to look elsewhere for opportunities.
“Every time there is a successful theft or crime, insider information is very important,” said Ryan, “and I think employees become the source of that on many occasions. If the Gallup study is a reflection of Germany, it might typify broader Europe. And if you bring that down to South Africa where you have the sociopolitical divides, you have extreme layers of poverty. Unfortunately, people are incentivized to be open to bribery and to share information.”
Some of this information pertains to newly released products that have not yet seen the public eye. This information will often garner more attention than the physical product itself. Combatting this theft of information necessitates a new way of approaching risk. More specifically, it will require developments around data risk management.
“New technology is going to have to start thinking about what else is there beyond the physical aspect of the cargo,” said Gutierrez. “It has to start protecting the all encompassing environment of what we do. Supply chain is not just about moving cargo for our customers but protecting the integrity of what we do for them. Systems integration isn’t quite there so we need to continue that path.”
The need for better regulation
Along with EMEA-specific risks, the panelists also touched on a few industry-specific threats. One of these related to the theft of pharmaceutical products.
“I think it’s important that the pharmaceutical supply chains be functional rather than agile,” said Ryan. “In order to do that we need to be properly regulated. We can’t have the situation we had with COVID and the e-commerce explosion where carrier networks on many occasions fell over.”
In order to prevent these risks from reoccurring, companies must implement better managerial processes and closer partnerships. They should also develop and audit suppliers to make sure they’re fit for purpose.
“We need to come up with mechanisms in our supply chain that allow us to make changes that are robust, fast, and cost effective enough for us to be able to adapt,” said Gutierrez. “Otherwise we’ll always be chasing our tail and the criminals [will remain] two or three steps ahead of us.”
How supply chains in EMEA benefit from visibility
Avoiding in-transit risks in EMEA is no easy feat. The cross-border thefts, insider informants, and lack of regulation are only a few of the obstacles. But with enhanced visibility into your supply chain, you’ll have the insights you need to spot threats and quickly intervene.
Overhaul offers end-to-end visibility across global supply chains. Our intelligence leaders also provide insights into cargo theft trends both within and outside of EMEA. Additionally, our partnerships, technology, and expertise allow us to constantly adapt and customize our offerings.
Contact us today to learn more about our EMEA-specific offerings. For more information about location-specific risks, here’s how transportation risks differ across EU and US roads.
