Volatility has defined contemporary supply chains unlike no other force. In this month’s cover story, Mary Shacklett hits the nail on the head when she states: “The reality of the world and its markets is that volatility is the norm and not the exception.”

A recent study by PRTM revealed an identical point of view. “Volatility is the new norm for supply chain operations, and continuing economic uncertainty is affecting demand by driving shorter capital investment cycles and tighter inventories,” said Dr. Reinhard Geissbauer, director at PRTM and leader of the study. “At the same time, political unrest, growing competition for resources, and a supply base not yet fully recovered from the financial crisis is generating supply shortages. And that outlook does not even include singular events such as Fukushima, Icelandic volcanoes, and other natural events.”

Fortunately, the unyielding pace of advancements in supply chain software and technology is helping companies manage volatility, mitigate risk, and remain compliant with various rules and regulations.

Without a doubt, cloud computing has emerged as one of the primary ways for companies to respond quickly to volatility due to its scalability, affordability, flexibility, and high level of visibility that it extends to all parties along the supply chain.

Of course, the parallel growth in mobile technology—smart phones, iPads—bolster cloud computing’s value proposition even more.

Not only are supply chains today prone to more volatility, they’re under increased regulatory scrutiny. For starters, the terrorist attacks on September 11, 2001 have generated profound changes in security related to commercial shipping. More recently, the U.S. government has seriously ramped up enforcement of the Foreign Corrupt Practices Act (FCPA), import valuations, and has embarked on major reform of the export control system.

In January, the Department of Justice arrested 22 executives in Las Vegas and Miami in what the agency described as the first large-scale foreign bribery investigation using undercover federal agents. On July 7, U.S. District Judge Richard Leon declared a mistrial in the landmark case after the jury deadlocked. The government has vowed to retry the defendants.

FCPA related investigations skyrocketed during the Bush administration and continues to rise. During 2004-05, the Department of Justice charged seven people under the law and collected more than $27 million in criminal fines. In 2009 and 2010, the department charged more than 50 people and collected nearly $2 billion. The World Bank estimates that more than $1 trillion in bribes are paid each year.

On a more encouraging note, this issue also highlights another supply chain trend: outsourcing. But, this isn’t your father’s outsourcing either. This is R&D, engineering, and collaboration. And, it’s taking off in Colombia, a country that not that long ago was hardly considered a viable place to do business.

Speaking of moving from the past to the present, I hope you’ll swing by our new and improved Web site. And in the coming weeks, we’ll be showing off our iPad app too.

Enjoy the read.

Lara L. Sowinski, Editor in Chief

laras@worldtradewt100.com