Supply chain security in times of uncertainty

The corona crisis has triggered a global recession and maybe even a depression. This economic downturn will cause high unemployment, social unrests, and major increase in crime rates over the coming 2-5 years. This has consequences for the security of your facilities, transportation assets, goods and supply chains. Are your prepared? It is now the right time for businesses to boost their supply chain security.

Crime involving theft from trucks, containers, factories, and warehouses will be on the rise. Although the attacks might be opportunistic, the targeting will be well-planned by gangs in collusion with employees and logistics personnel. Gangs are also able to infiltrate cargo workers, corrupt customs officers, and sea port and airport security. A major problem is that tackling cargo crime is a low priority for police and judicial systems, who rather focus on drug smuggling or crimes which impact the general public. Secondly, a big part of cargo crime is unreported as logistics service providers affected do not want to tarnish their reputation and rather sweep the affair under the carpet.

There will be a rising threat of cyber-attacks to supply chain networks. Criminals are increasingly targeting information and communication technology systems of corporations. Since the outbreak of Covid-19, e-commerce has been catapulted into complete overdrive. Last-mile distribution however is fragmented, having many small and new players involved with simple IT system backends that may have weak system security. Weak links expose not only transportation assets but also the goods themselves which are being moved and stored. It is good to realise that supply chain networks are inherently insecure, with many parties involved, sharing information with an extended supply chain network and customers. Gaps in information security, directly result in gaps in supply chain security. Elevate your supply chain security by a solid supply chain security program and technology.

Supply Chain Security Program

The goal of a supply chain security program is to shield your supply chain from theft, pilferage, infiltration, and contamination. A robust supply chain security plan details how goods are protected while they travel along the supply chain. For logistics service providers a supply chain security programs protects the client’s cargo while in your care, custody, and control.

A supply chain security program requires each link and handoff to be examined, understood, and protected. This program will have impact on contracts and agreements with supply chain partners to ensure that a supply chain security program is well aligned. Security must occupy a place in the operational mindset of every employee at all levels of business. The security of a supply chain is as strong as its weakest link. Ideally, you want assimilation of your security program in the supply chain, not just integration. Next to prevention, a supply chain security plan also details how it handles an incident and crisis. A prompt, aggressive, and appropriate response to an incident is critical. Hence, the development of a security program is done in close cooperation with risk management.

Supply Chain Security Technology

Next to tracking of the transportation asset, also physical security is needed of transport, warehouse and factory. Managing physical security covers facility perimeter barriers, fences, and walls; parking; lighting; sensors; intrusion detection systems; locks; and more. Access control to facility, transport unit, materials, and information need to be well managed by design. Finally, taping/wrapping and seals are used not really to prevent cargo pilferage, but to easily identify if there is a breach in cargo security.

Supply chain security technologies determine only 20% of your supply chain security. The backbone of supply chain security is formed by the actual security policies and procedures in a supply chain security program that determine a hefty 80% of your supply chain security! At the end supply chain security is a process.

LBB International helps companies in designing supply chain security programs, protecting your facilities, transportation assets, goods and supply chain network from theft, pilferage, infiltration, and contamination. Security policies and procedures are the backbone of solid a supply chain security program, supported by reviews and audits in the supply chain to ensure compliance. For more information contact our office nearest to you.