A Fond Farewell to 2007
Oxford Dictionary named locavore its official Word of the Year for 2007. Who cares? Locavore is defined as a person who buys or encourages others to buy from local farmers or grow or pick their own food - arguing that fresh, local products are more nutritious taste better and are better for the environment because they require less transportation. My point? A major spotlight has been placed on the source of products in 2007. The most frequently asked question around the holiday season this year is not where can I find the latest talking Elmo? Instead, it's Was Elmo made in China and will it be recalled?

It wasn't only product recalls that impacted the sourcing world in 2007. Looking back at 2007 several significant events shaped the world of sourcing, global logistics and supply chain finance: the credit crisis, economic volatility and uncertainty, political shifts... Here's a look at how these events will carry over into 2008.

It's the economy, stupid
The credit crunch slowed things down worldwide by placing a clamp on the flow of cash into the global economy. Many see a recession on the horizon in 2008. And now with a whiff of inflation in the air, the FED is going to be reluctant to reduce rates any farther making things worse.

Location, location, location
Our apparel and footwear index is beginning to show a big shift. Chinese market prices continue to rise, driving companies out of China and into Vietnam. India continues to develop its infrastructure and grow - currently a major source of low-cost products. We saw many companies move into Pakistan earlier in the year - and just as quickly, move out when conditions took a downturn. Product recalls have placed a magnifying glass on sourcing and quality control from China, causing parents to take a closer look at the toys they buy and companies to take a closer look at the factories they buy from.

The high price of oil and the green movement have companies examining their carbon footprints and searching for ways to inject green into the supply chain. This has led to near sourcing in the Americas and a focus on calculating the True Cost of Sourcing.

All politics is local
The US presidential election could paralyze free trade talks in 2008 when everyone in congress refuses to take a position one way or the other. The one position politicians will continue to take is pressure on the Chinese to revalue the RMB. And the Chinese will do what they have been doing all along, smile and do nothing...

What to expect in 2008? More of the unexpected. More social, economic and political uncertainties will lead to more risk in your sourcing and manufacturing operations. More reason to assess your exposure to supply chain risk and take action by maximizing your strategic global partners and services.

Regards,

Kurt Cavano
CEO of TradeCard, Inc.

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Notable Quotes From the Past Quarter

"We have 85% of our import volume on TradeCard transacting successfully and we expect that to go up to 95% next year... We're transacting with 180 different vendors in 31 countries and we have quite an eclectic array of products. We're sourcing everything from fishing to socks to weights... you name it we probably have it sourced in our store. We're always looking for emerging markets to source from. We can typically have a vendor set up on TradeCard within a month."

      -- Dave Wallace, Manager of Imports Finance & Process Improvement at Dick's Sporting Goods

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"Partnering with TradeCard enables WRAP to extend its reach to thousands of factories on the TradeCard Platform. WRAP ensures that consumer products are manufactured under lawful, humane and ethical conditions by monitoring factories worldwide and certifying compliance with our standards for responsible and ethical production."

      --Steve Jesseph, President and CEO of WRAP (Worldwide Responsible Accredited Production)

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"TradeCard is excited to be making a positive impact on the enforcement of lawful, humane and ethical manufacturing practices. Socially compliant manufacturing is a priority for consumers, brands and retailers worldwide and TradeCard is dedicated to maintaining the highest standards for humane and ethical production on the TradeCard Platform. Thousands of TradeCard users that transact on the Platform each day will have the ability to make a difference by confirming WRAP certification."

      --Kurt Cavano, CEO of TradeCard, Inc.

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"The value that the TradeCard Platform brings to companies in the Middle East and North Africa as well as Cyprus is massive. Globalization demands a certain level of automation. The platform achieves this in ways that internal ERP systems never could - by connecting both buyers and their suppliers in a single electronic environment, eliminating paper and providing both parties with innovative trade finance services."

      --Barry Lites, CEO of TradeCard MENA

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"Our partnership with the World Trade Centers Holdings (Cyprus) adds 23 new countries to the TradeCard network, which already connects trading partners in more than 45 countries by automating sourcing, logistics and supply chain finance processes. Our on-demand platform has enabled thousands of customers to improve revenue, margins and cash flow without adding offices or resources overseas. We're excited to introduce our platform, supply chain services and award-winning support to the Middle East, North Africa and Cyprus."

      ----Kurt Cavano, CEO of TradeCard, Inc.

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Latest Announcements from This Quarter

WORLD TRADE CENTERS HOLDINGS (CYPRUS) AND TRADECARD INTRODUCE SUPPLY CHAIN PLATFORM IN 23 COUNTRIES
World Trade Centers Holdings (Cyprus), the licensee and owner of 15 World Trade Centers throughout the Middle East, North Africa and Cyprus has signed a long-term agreement with TradeCard, Inc. to offer their services in 23 countries in the region. The agreement gives World Trade Centers Holdings (Cyprus) the right to sell a customized white-label version of the TradeCard Platform to corporate buyers in the Middle East, North Africa and Cyprus.

Read the full press release: http://www.tradecard.com/news/pressreleases/wtcaCyprus.html

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TRADECARD INJECTS SOCIAL RESPONSIBILITY VERIFICATION CAPABILITIES INTO ITS SOURCING PLATFORM
TradeCard has partnered with Worldwide Responsible Accredited Production (WRAP), an independent, non-profit organization dedicated to the certification of lawful, humane and ethical manufacturing throughout the world, to promote social responsibility on TradeCard's network of 3,000 global trading partners. Factory certification data from WRAP will be available on the TradeCard Platform to enable buyers to check ethical compliance statuses and social track records prior to transacting with a factory.

WRAP works with retailers, buyers and interested stakeholders to enforce a Universal Code of Ethical Conduct that takes into account factories' compliance with labor laws and workplace conditions.

Read the full press release: http://www.tradecard.com/news/pressreleases/wrap.html

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Aberdeen Group: CASE STUDY: MITSUI'S BEST IN CLASS STRATEGY
Excerpt from Aberdeen Group on Mitsui's cost savings and improved efficiencies since adopting a third-party transaction management platform.

The large Japanese trading group, Mitsui & Co. Ltd., adopted a third-party transaction management platform for some of it's business in 2002 and has been rewarded with significant cost savings and improved efficiency in all trade-related processes. "We needed a web-based solution that would allow us to electronically exchange documents both within our company and with our trade partners, thus reducing the amount of paper involved in the process," says Shinya Imai, general manager of the trade function business department.

Cost savings were immediate, report Imai. "The overall cost saving compared with LC operation was about 50%. For our export business, the direct cost directions are about 30% and the labor costs are reduced by 68%, so the overall cost reduction is also about 50%.

"Using this new transaction management platform has allowed us to significantly cut down the amount of paper that is shuffled, and to achieve and unprecedented level of speed, accuracy and full transparency for our trade processes," says Imai. "Credit management has improved too: the new platform's electronic documents, financial system and the guaranteed payments make credit more manageable."

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IT News: GLOBAL SOURCING WITHOUT GLOBAL HEADACHES
Excerpt from an IT News article on the best approach to supply chain collaboration - keep it simple.

A recent AMR study reported that getting data under control is often the first order of business for apparel and retail companies when attempting to manage the movement of goods. Traditionally, supply chain solutions have been limited in the area. The average global transaction has 20-25 different touchpoints and aligning all of these moving targets for supply chain collaboration is an extremely difficult process.

The best approach to supply chain collaboration in today's world of extended supply chains is to keep it simple. Automation and agility of processes are the starting point. When trading partners remove paper from the transaction process and collaborate on a single platform, there is less error, more efficiency, better visibility and new found flexibility from automation of processes.

From an IT standpoint, look for on-demand solutions that are easy to roll out and can easily tie-in your suppliers overseas. Take a holistic approach to the supply chain - "what's good for my suppliers is good for me."

To read full article go to: http://material-world.com/Content/926.htm

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Supply & Demand Chain Executive Magazine: TRADECARD SUPPLY CHAIN PLATFORM OFFERED IN MIDDLE EAST, NORTH AFRICA AND CYPRUS
Excerpt from Supply & Demand Chain Executive Magazine on how TradeCard supply chain solutions will be offered in the Middle East, North Africa and Cyprus.

World Trade Centers Holdings (Cyprus) has inked a long-term deal to offer supply chain solutions and services from TradeCard in 23 countries in the Middle East, North Africa and Cyprus. This agreement gives the company the right to sell a customized white-label version to corporate buyers throughout the area.

A new company formed for the venture, "TradeCard holdings Cyprus Ltd," will operate under the name "TradeCard MENA,"and Barry Lites, TradeCard's senior vice president and general counsel, will join TradeCard MENA as CEO, and the new company will be based in Bahrain.

To read full article, click here.

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Dick's Sporting Goods Case Study Replay: View the replay of the webcast hosted by Integrated Solutions for Retailers magazine and TradeCard, featuring Dave Wallace, Manager, Imports Finance & Process Improvement at Dick's Sporting Goods. Hear how supply chain innovation at Dick's Sporting Goods enabled the retailer to streamline its extended supply chain and drive private label business growth - to achieve its business goals.

https://tradecardevents.webex.com/ec0507l/eventcenter/recording/recordAction.do?theAction=poprecord&path=pop_program_info&confViewID=277780107&siteurl=tradecardevents

January

Jan 14-16: National Retail Federation 97th Annual Convention and Expo, New York, NY
http://events.nrf.com/annual08/public/enter.aspx

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February:

Feb 6: Retail Connections Summit, Boca Raton, FL

Feb 13: SAP Kongress fuer Handel und Konsumgueterindustrie, Leipzig, Europe
http://www.sap.com/germany/company/events/search/overview/index.epx?EventID=4110

Feb 24: AAPN Annual Meeting, Newport Beach, CA
http://www.aapnetwork.net/Content/121.htm

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March:

Mar 5: AAFA Annual Executive Summit, Tucson, AZ
http://www.apparelandfootwear.org/Events/event.asp?EVENT_ID=149

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