Supply chain security is
the part of supply chain management (SCM) that focuses on minimizing risk for
supply chain, logistics and transportation management systems (TMS). The goal
of supply chain security is to identify, assess and prioritize efforts to
manage risk by layered defenses in an agile manner. This requires a
multifaceted approach to protecting the checkpoints, assets and infrastructures
involved with the production of a product. Supply chain security also takes
into account the protocols set by government agencies, like homeland security
or customs regulations for international supply chains.
The first step in
supply chain security is to identify any potential weaknesses in a system.
Overall organizational risk management practices should then be adjusted to
accommodate and address those weaknesses. Collaboration with a 3PL provider can
also help organizations find vulnerabilities and make improvements within a
supply chain.
Examples of supply chain security activities
A few examples of
security procedures that can be put into place to make supply chains more
secure include:
- Verifying proper credentials for all participants within a supply chain.
- Screening all of the contents within a cargo that is being shipped.
- Notifying recipients of shipments in advance.
- Securing the cargo in transit or storage with the use of access controls, alarms, locks, surveillance or tamper-proof seals.
- Inspecting cargo at each stage of the supply chain or shipment process.
- Completing background checks on all employees.
- Meeting all compliance and security standards.
- Conducting regular risk assessments of supply chain segments, vendors and partners.
- Training employees to identify and resolve supply chain security risks.
Importance of supply chain security
Supply chain security
should be a high priority for organizations as a breach within the system could
damage or disrupt operations. Vulnerabilities within a supply chain could lead
to unnecessary costs, inefficient delivery schedules and a loss of intellectual
property. Additionally, delivering products that have been tampered with or
unauthorized could be harmful to customers and lead to unwanted lawsuits.
Security management
systems can help protect supply chains from physical and cyber threats. Physical
threats encompass risks with internal and external sources, such as theft,
sabotage and terrorism, while cyber threats refer to vulnerabilities in IT and
software systems, like malware attacks, piracy and unauthorized ERP access.
While threats cannot be completely erased, supply chain security can work
towards a more secure, efficient movement of goods that can recover rapidly
from disruptions.
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