Advisory Board: A cost we must afford
Everyone has a stake in supply chain security. We must strengthen our resolve and sharpen our vigilence.
Col. Alan B. Will, Chief of Staff, 2nd Marine Logistics Group -- Modern Materials Handling, 2/1/2009
It's 2009. It's time for global companies to approach supply chain security with a plan. Security of the supply chain has always been important, but offshore manufacturing and terrorism have driven awareness to new levels. How serious is the security issue?
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Weapons of mass destruction could be part of container shipments between nations.
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Cargo theft could drain precious dollars from firms.
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Employee theft costs American firms more than $40 billion a year, according to the U.S. Department of Commerce.
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Hurricane Ike disrupted shipments in the Gulf of Mexico region.
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A band of Somali pirates seized a Saudi tanker carrying $100 million in crude oil hundreds of miles off the African coast.
Supply chain security combines traditional supply chain management practices with security requirements of the system. Supply chain security protects firms against four threats: theft, terrorism, piracy and physical disaster. Firms should have a documented security plan addressing the following:
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Credentialing personnel in the supply chain
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Trading partner security extending to both suppliers and customers
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Employee security awareness
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Screening cargo contents
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Security of inventory while in-transit through use of tamper-proof containers, seals and locks
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Tracking of inventory while in-transit through use of technology enablers such as a global positioning system (GPS) and RFID
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Security of items while stored in a facility
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Information security
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Disaster response
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Adherence to national and international standards
Supply chain security starts with an organization's developing a security awareness culture. Employees at all levels should be educated on potential threats to the supply chain and provided the means to counter these threats. Conversely, organizations should solicit input from employees on vulnerabilities. Periodic security inspections should be conducted to ensure all within an organization are in compliance with security measures.
A supply chain security plan should not adversely affect movement of materials through the supply chain. Coordination of all agencies within the supply chain is a must and all links in the chain must be part of the security plan. Companies must share information such as cargo movement schedules and manifests, yet protect this information from access by the wrong people.
Technology can be a real enabler by providing accurate, real time information on movement of materials and the integrity of shipments at various nodes. It can also reduce the need for an army of surveillance personnel.
Where can organizations look to find supply chain security initiatives and standards? Some sources include:
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U.S. Customs Service and Department of Homeland Security Container Security Initiative (CSI),
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The International Organization for Standardization (ISO) 28000: 2007 supply chain security standards, and
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Private firm pilot initiatives monitoring container movement and integrity with RFID and GPS technology.
Vulnerabilities in the supply chain can not only cost a company monetary and human resources, but they can threaten the security of the nation. A well-coordinated and effective effort protecting our supply chains is a cost we must bear.
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