Study: Retailers Spending Less on Cyber Security
Chicago In an annual study performed by BDO Seidman, Chicago, and released on Tuesday, 44% of retail CFOs stated they have increased investment in cyber security, down from 61% in last year’s survey. Similarly, only 25% of the CFOs, compared to 32% in 2007, said their company had increased the level of human and financial resources allocated to risk management associated with vendors or suppliers.
“When considering cyber security, many have invested heavily in deterring data breaches over the past two years and, consequently, most retailers are more confident in their protective measures this year,” BDO partner Ted Vaughan, stated.
In other study findings, a majority (90%) indicated they had not made any changes to supply chain relationships as a result of product recalls or food-safety concerns.
“Two major issues plaguing retailers last year were product safety and cyber security,” Vaughan said. “After the spate of product recalls in 2007, there was a flurry of demand to move product sourcing away from China. Realistically, however, retailers would have been pressed to change their sourcing overnight, as supply chains are complex and expensive to establish. Instead, retailers have been more focused on enforcing safety standards and working with regulators to ensure that consumers are protected.”
Although spending was down relative to risk management and security, 76% of those surveyed said their company is actively involved in green practices, which represents a 9% increase over green initiatives in 2007.
The study, which was conducted in August and September, surveyed 100 CFOs at retail companies with revenues of more than $100 million.
Produce companies endorse supply chain initiative
NEW YORK Thirty-four companies from throughout the produce supply chain, including Wal-Mart, Kroger and Safeway, have endorsed a new plan developed by the Produce Traceability Initiative (PTI) to move the supply chain to a common standard for electronic produce traceability by the end of 2012.
The plan involves adopting a standardized system of case bar-coding for all produce sold in the United States, to allow product to be tracked throughout the distribution chain. Through the plan, participating companies said they hope to maximize the effectiveness of the industry’s current traceability procedures, improve internal efficiencies and assist public officials when they need to quickly trace back a product.
The PTI is administered by Produce Marketing Association (PMA), United Fresh Produce Association (United Fresh) and the Canadian Produce Marketing Association (CPMA). The 34 companies endorsing the plan are members of the PTI’s supply chain-wide Steering Committee. Established in late 2007 to establish industry traceability best practices and set goals for their adoption and accountability, the PTI Steering Committee has been working since then to develop a plan for moving industry to chain-wide, electronic traceability.
Family Dollar announces new promotions
MATTHEWS, N.C. Family Dollar Stores announced that Marilyn Morse has been promoted to the position of vp of facilities management and Mtu Pugh to the position of vp of business development. Morse will report to Keith Gehl, senior vp of real estate and facilities. Pugh will report to Dorlisa Flur, evp of strategy and marketing.
Morse joined Family Dollar in 2006 as divisional vp of store maintenance with responsibility for the company’s store maintenance and energy management programs. Prior to joining Family Dollar, Morse served as a vp with Lowe’s.
Pugh joined Family Dollar in 2006 as divisional vp of strategy and business development with primary responsibility for the development and execution of the company’s concept renewal initiative. Prior to joining Family Dollar, Pugh served as an Associate with McKinsey & Company.