The SupplyChainBrain Podcast

Call it the dark side of international commerce: fakes, frauds and thought thieves. Time to take action. On a global scale, companies are losing an estimated $657bn each year due to product counterfeiting and intellectual property (IP) infringement. And, with the explosion of trade over the past few years, the problem is becoming even more widespread. Previously, companies had only to worry about their finished goods being illegally duplicated and sold on the black market. Now, raw materials and key components are becoming subject to counterfeiting as well. That raises serious questions of public safety, when it comes to products such as food, jet engine parts and pharmaceuticals. Professor Michael R. Czinkota of the McDonough School of Business at Georgetown University joins us on this episode to discuss why the issue of counterfeiting and IP theft has become more serious than ever before. And he explains why he's optimistic that steps might finally be taken to curb these illegal practices.

Electronic waste is threatening to overwhelm our landfills. Despite the popularity of global recycling programs, we're a long way from solving the problem of what to do with the waste from discarded business and consumer electronic devices. As much as 85 percent of electronic products were discarded in landfills or incinerators last year. And the release of the iPhone 6 has brought the issue to a ''tipping point,'' says Linda Li, executive director and corporate vice president of strategy with Li Tong Group. On this episode, she discusses where previous recycling efforts have fallen short, and why we're still not deriving maximum use from the materials contained in old devices. Li argues for a ''closed-loop'' approach to managing e-waste supply chains – ''the Holy Grail of the recycling business.''

Are cryptocurrencies like bitcoin gaining legitimacy in the retail and services sector? And what impact might they have on the supply chain? Bitcoin is an online, peer-to-peer payment system that sidesteps traditional currencies. The virtual instrument has had a rocky existence since it was invented in 2008 by the mysterious ''Satoshi Nakamoto''. Among its setbacks was the U.S. government's seizure of assets of the Tokyo-based bitcoin exchange known as Mt. Gox, followed by the FBI's shutdown of the Silk Road website, accused of being a marketplace for the sale of illegal drugs funded by bitcoin. Now, however, bitcoin and other cryptocurrencies are beginning to gain acceptance as legal tender by a number of online merchants. One of them is eGifter, the seller of digital gift cards, whose founder and chief executive officer Tyler Roye joins us on this episode to explain why he believes bitcoin is an idea that's here to stay. He also speculates about the currency's possible impact on supply-chain transactions.

Five years from now, the global work environment will look a lot different than it does today. But many companies aren't prepared to deal with the change. Jettison those full-time employees who have spent their entire working lives with the same company. Bring in the independent contractors and contingent employees who are making up an increasing share of the workforce. That's the picture painted by Workforce 2020, a new study by Oxford Economics with support from SAP SE. The survey covers more than 5,400 employees and executives in 27 countries. What it finds is a radical shift in the way that businesses are calling on managers and employees to perform key tasks. At the same time, it pokes holes in some of the myths that we've harbored about the so-called Millennials. Turns out they want many of the same things from their careers that their predecessors demanded – to a point. Explaining the study's findings is Tim Minahan, chief marketing officer with SAP Cloud. He talks about what companies must do to prepare for the changes that we'll see in the very near future.

The nationwide driver shortage just won't go away. And shippers are paying the price. It seems as though nobody wants to drive a truck anymore. So much for the romantic image of the long-haul trucker: the job has lost any appeal that it might once have had. The hours are long and grueling, and the compensation inadequate. That, at least, appears to be the main reasons behind the persistent shortfall of qualified drivers – around 30,000 each year, according to the American Trucking Associations. The average age of U.S. truckers today is 55, and younger people aren't interested in taking their place. Yet nearly 70 percent of total freight volumes are carried by the trucking industry. Something's got to give. On this episode, we talk to Bobby Harris, chief executive officer of BlueGrace Logistics. He explains how we were brought to this state of affairs, what it's costing shippers and American consumers, and what might be done to alleviate the problem.

Traditional retailers aren't taking the challenge from pure e-tailers lying down. They can deliver on same-day orders, too. Amazon.com, Google, eBay and others have been ramping up their same-day delivery capability in select cities. Now brick-and-mortar retailers have a way to match that service. Deliv is a provider of same-day delivery on behalf of major retailers. Drawing on a pool of independent drivers - much like the business model of crowd-staffed taxi services Uber and Lyft - the company can consolidate multiple orders from stores and meet consumer demand for time-specific delivery. Our guest on this episode, Deliv founder and chief executive officer Daphne Carmeli, explains how the service works, and why she believes that it's economically feasible to provide this premium option at a reasonable price. She also refutes arguments that the model isn't scalable, or might run into reliability problems because of its contracted workforce. As for whether consumers will embrace the innovative idea, she quotes Steve Jobs: ''A lot of times, people don't know what they want until you show it to them.''

Face it: There's no such thing as a supply-chain information-technology system that’s completely invulnerable to cyber attack. Hackers are growing more sophisticated every day, and the best ones manage to stay one step ahead of most companies' I.T. security departments. Still, there are some basic steps that companies can take to protect themselves against most kinds of incursions. On this episode, we get advice from Timothy Hall, president of Azorca Cyber Security, LLC. He talks about the real risks that supply chains face today, as well as some of the myths and misunderstandings that prevent them from building strong walls against the invaders. And he explains why so many major retailers have fallen prey to successful cyber attacks in recent months. Hint: It's not just about I.T.

Tired of dealing with slow ships and congested ports to get your product out of China? Why not take the train? That's what Hewlett-Packard Co. did. In fact, the consumer-electronics giant forged a whole new path for getting manufactured goods from its Chinese factories to markets in Western Europe. The move followed a shift by the company of factory capacity into inland and western China, a response to growing congestion within the country's industrial zones along the coast. Then HP had to overcome the additional cost and logistical complexities of sourcing from a remote region of the Chinese interior. The answer: placing its containers aboard the Trans-Eurasia Railway, for a journey of more than 6,700 miles. Ronald Kleijwegt, HP's director of logistics for Europe, the Middle East and Africa, explains how the company came up with the innovative plan, and what it has saved in logistics costs and time to market.

The Ebola crisis has given rise to the usual epidemic of misinformation, overreaction and lack of preparedness by individuals and business. Will we ever learn? The situation is undeniably serious, especially in the African nations of Sierra Leone, Liberia and Guinea. Now that the disease has reached American shores, however, we're seeing a public response that doesn't always match up with its actual nature. It’s a case of simultaneous overreaction and underreaction, says John Rose, chief operating officer with iJet International, a provider of risk-management advice to multinational corporations and governmental organizations. On this episode, Rose acknowledges the existence of some unanswered questions about the disease. But he also offers valuable guidance on how companies can craft a proactive business-continuity plan, and respond to the real threat of the Ebola virus. ''Find out why a little fear might not be a bad thing.''

Manufacturing and distribution executives love the idea of slashing inventories. But it's distribution-center managers who must deal with the consequences. Lean is the watchword in supply-chain management today, and inventory isn't immune. All that merchandise sitting around on warehouse racks seems like a prime candidate for cost-cutting. And most of the time, the practice makes sense. Who wants a lot of unneeded product dragging down the bottom line? Unfortunately, D.C.s aren't always involved in the high-level decision to cut inventories. On this episode, we hear from Jeff Primeau, senior manager in the supply chain practice of management and technology consulting firm West Monroe Partners. He talks about how distribution operations can cope with sharply reduced stocks, and keep product flowing efficiently.