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SOX
by leon on November 27, 2007

The supply chain is never the sexiest of topics. But it's become absolutely critical in a global economy where consumers have more power and where pressures for accountability are growing. So what impact has it had on supply chains. But what impact has Sarbanes-Oxley had on supply chains? Given that the law is broad-sweeping, it's had an impact on every other part of the business.
Some interesting insights from University of Central Florida and University of Melbourne researchers. Their paper The unintended consequences of Sarbanes-Oxley on technology innovation and supply chain integration found that the results vary from company, as one would expect, but it has had an impact on production cycle times, information technology investment, supply chain performance, and market competitiveness.
One company noted it had affected cycle times. "Time to process normal business transactions has increased an estimated 5%,'' the company said. "In the transportation industry, that additional time the customer experiences can and probably has lost us business.... The time impact is greater as transactions increase in complexity."
The researchers also noted that it appeared to have crimped organizational flexibility. "In turn, this impact on flexibility appears to have some limiting effect on strategic IT investment as well as having a negative impact on organizational agility and overall supply chain performance in certain situations,'' the researchers noted.
Permalink: SOX squeezes supply chains
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THE
UNINTENDED
CONSEQUENCES
OF
SARBANESOXLEY
ON
TECHNOLOGY
INNOVATION
AND
SUPPLY
CHAIN
INTEGRATION
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