CLEVELAND, Ohio — The first deadline for Sarbanes-Oxley compliance, November 15, and Ohio-based Virtual Yard Management, a transportation-logistics business with expertise in yard management and switching services, is providing its clients with technology that can be a critical tool in their Sarbanes-Oxley arsenal.
Named after cosponsors Sen. Paul A. Sarbanes and Rep. Michael G. Oxley, the Sarbanes-Oxley Act is the most important business reform law in more than 70 years, with stringent and sweeping requirements. Officially called the Public Company Accounting Reform and Investor Protection Act of 2002, Sarbanes-Oxley was created by Congress to help restore investor confidence after numerous corporate scandals, such as WorldCom and Enron, rocked the markets. Title IX of the legislation requires CEOs and CFOs to certify company financial statements quarterly and annually. They have to personally sign off on audits, and false declaration can bring severe repercussions.
"Many companies don’t realize just how critical the operational side of the supply chain is in this new Sarbanes-Oxley environment," says Joe Radican, president, Virtual Yard Management. "It’s not just about the bean counters on the financial side or the IT staffit begins in supply chain management."
According to Radican, companies need to know what is being transported, what is in the loading dock, and what’s sitting in the freight yard in order to be able to track it, document it, and ensure it is accounted for accurately and correctly.
"For example, a firm can have manufactured goods placed in a trailer that is sitting in the yard, and it may be considered as ‘inventory’ on the books, when in fact, it should not be," explains Radican. If I were a public company CEO faced with increased personal responsibility to attest to the accuracy of financial records I would want to know exactly what is in the yard and how it is being reported. Ignorance is not bliss and it is not an acceptable defense. The right tools for compliance and control can give company officers peace of mind."
According to Radican, beyond public companies, Sarbanes-Oxley may leave an increasing ripple effect on the state level, that may affect privately-held companies, including trucking firms.
Virtual Yard Management software, a cohesive and integrated tracking and management program, empowers companies to maintain control and visibility of product and assets regardless of their physical location.
"You know what’s sitting in your yard," said Radican.
VYM evolved from software applications originally developed to support Virtual Yard Management’s switching business, as a service provider in the automotive manufacturing arena. VYM works vertically to implement and maintain operational efficiencies within a client’s infrastructure; horizontally, it coordinates outside suppliers, carriers, and third parties (3PLs) to provide a strong link in supply chain logistics. VYM also incorporate web-based Internet access providing online visibility to multiple sites.
Based on a database platform, VYM operates in concert with RF technologies, supports system-to-system integration with data mining, and advocates online Internet applications. VYM can operate on a single workstation or network systems; for a single workstation, it uses the Microsoft SQL7 database; an alternative is using a PC style server with Novell, IBM, or Microsoft NT operating systems.
For more information, visit www.ktcompanies.com
Truck News is Canada's leading trucking newspaper - news and information for trucking companies, owner/operators, truck drivers and logistics professionals working in the Canadian trucking industry. All posts by Truck News