There's New Momentum afoot to minimize risk, forge a stronger supply chain

As more companies realize just how fragile the links in a global supply chain actually are, risk mitigation moves from a low-level to a high-level priority. “To cope with largely unpredictable events, leading companies make supply chain investments to ensure goods continue to flow despite major disruptions,” says Patrick Connaughton, senior analyst with Cambridge, Mass.


As more companies realize just how fragile the links in a global supply chain actually are, risk mitigation moves from a low-level to a high-level priority.

“To cope with largely unpredictable events, leading companies make supply chain investments to ensure goods continue to flow despite major disruptions,” says Patrick Connaughton, senior analyst with Cambridge, Mass.-based Forrester Research .

Connaughton says leaders know the key to success is establishing day-to-day processes that can scale in times of crisis.

These best practices are said to offer the highest return:

  • Design networks for maximum resiliency;

  • Extend situational awareness to supplier and carrier networks; and

  • Boost prevention efforts by integrating better security measures.

    • Joe Stafford, executive VP of risk management solutions vendor New Momentum, says constant monitoring of buying, selling, and other market activity protects revenue streams and leads to stronger, more flexible supply chains.

      But supply chain risk mitigation doesn't necessarily stop there. For one, there's the inherent risk involved with sharing intellectual property (IP) with partners and suppliers.

      “To cut costs, many companies have moved manufacturing operations overseas. Now they are looking at ways to protect those revenue streams,” says Joe Stafford, executive VP of New Momentum , a vendor of supply chain risk management software that targets companies that either make or use electronic components. “One way is to take steps to protect IP from counterfeiters and detect sales through unauthorized channels, which can prevent lost revenue growth and brand reputation erosion.”

      But the problem, claims Joshua Greenbaum, principal for Berkeley, Calif.-based Enterprise Applications Consulting , is that tracking product loss through the gray market presents a classic needle-in-a-haystack scenario.

      “There's an enormous wealth of product-related data beyond a company's firewall that needs to be tracked and analyzed,” says Greenbaum. “Understanding this data can be a tremendous undertaking. The requirement to continuously monitor changing conditions makes the task that much more complex.”

      The solution for a growing number of companies is adoption of supply chain risk management software.

      According to Stu Clifton, CEO, New Momentum, “Our latest solution, introduced last summer, provides global enterprises with comprehensive capabilities for finding counterfeit components and unauthorized distribution. Most important, what we do is protect our customers' revenue streams.”

      The process begins when the customer supplies a list of part numbers to New Momentum. The on-demand solution then monitors constantly for email activity, as well as buying, selling, and other market activity concerning those part numbers. Next, New Momentum provides the customer with an alert that details the findings so the company can act accordingly.

      “That's our real strength: this type of constant monitoring and building on results,” Stafford says.

      That approach is of significant interest to Inventec , a Taiwan-based supplier of high-tech products including notebooks, enterprise servers, storage solutions, wireless communications, network applications, mobile devices, and wireless applications. Inventec will use the New Momentum solution to protect IP, and identify possible supply chain constraints before they become a problem, Stafford says.

      Given the many parts in its products, New Momentum will enable the manufacturer to monitor the market for movement of those parts, including whether prices for various commodities are rising or falling, and who's doing the buying and selling.

      “Interruptions in manufacturing can be very costly,” Stafford says. “Constantly monitoring the market will enable Inventec to—among other things—identify potential suppliers it could turn to in case its suppliers' commodity quantities dry up for some reason. The result is a stronger and more flexible supply chain.”

      SC risk, by the numbers

      New Momentu, a vendor of supply chain risk management software, offers these figures as a typical revenue loss for an electronics component manufacturer due to gray market activity:

      Annual company revenues: $900 million

      Product lines: four

      Product lines suspected of having gray market sales: one

      Annual revenue for this product line: $400 million

      Gray market availability: loss to the company of $24 million

      Company sales discounts due to gray market competition: $4 million

The Top Plant program honors outstanding manufacturing facilities in North America. View the 2017 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
Each year, a panel of Control Engineering and Plant Engineering editors and industry expert judges select the System Integrator of the Year Award winners in three categories.
Welding ergonomics, 2017 Salary Survey, and surge protection
2017 Top Plant winner, Best practices, Plant Engineering at 70, Top 10 stories of 2017
Pipe fabrication and IIoT; 2017 Product of the Year finalists
Product of the Year winners, Pattern recognition, Engineering analytics, Revitalize older pump installations
Control room technology innovation; Practical approaches to corrosion protection; Pipeline regulator revises quality programs
The cloud, mobility, and remote operations; SCADA and contextual mobility; Custom UPS empowering a secure pipeline
Setting internal automation standards
Knowing how and when to use parallel generators
PID controllers, Solar-powered SCADA, Using 80 GHz radar sensors

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
The maintenance journey has been a long, slow trek for most manufacturers and has gone from preventive maintenance to predictive maintenance.
This digital report explains how plant engineers and subject matter experts (SME) need support for time series data and its many challenges.
This digital report will explore several aspects of how IIoT will transform manufacturing in the coming years.
Maintenance Manager; California Oils Corp.
Associate, Electrical Engineering; Wood Harbinger
Control Systems Engineer; Robert Bosch Corp.
This course focuses on climate analysis, appropriateness of cooling system selection, and combining cooling systems.
This course will help identify and reveal electrical hazards and identify the solutions to implementing and maintaining a safe work environment.
This course explains how maintaining power and communication systems through emergency power-generation systems is critical.
click me