Our supply chains are the ones that will be affected in the event of a terrorist act, and our supply chains are the ones that will be slowed by the onerous government mandates that are likely to follow an attack. Industry leaders must be at the table, working with governments worldwide to balance security and trade facilitation; advocating common, global supply chain security requirements and customs-clearance data and processes; and promoting voluntary participation in security efforts that provide collateral benefits for companies that get involved.
Article Figures [Figure 1] Supply chain security drives business value Enlarge this image. Industry can also show governments around the world that countries that develop a skilled work force, provide a secure environment, and create efficiencies that allow businesses to reduce costs will grow their economies.
Governments that partner with industry to develop secure, efficient cross-border processes will accomplish these objectives sooner than those that do not. IBM's perspective As a large, globally integrated enterprise doing business in more than countries, IBM values a secure, compliant, and efficient supply chain.
That's why at IBM supply chain security begins with executive commitment and extends throughout our global processes. It affects not only manufacturing, fulfillment, and logistics but also information management, procurement, and even employee education and human resources. Within IBM, supply chain security is defined as the protection of products, facilities, equipment, information, and personnel from theft, damage, or terrorism as well as preventing the introduction of unauthorized contraband, people, or weapons.
This is very different than trade facilitation , which is the enhancement of supply chain efficiency and predictability by reducing supply chain costs related to customs-clearance time, inspections, and inefficient or country-specific customs processes.
Supply Chain Security – Threats and Solutions
Yet both supply chain security and trade facilitation are necessary to keep the global economy running efficiently and effectively. IBM maintains that industry should play a significant role not only in securing trading networks but also in shaping supply chain security and tradefacilitation initiatives around the globe. As documented in recent academic studies, these partnerships can make a difference when it comes to visibility, speedto- market, inventory levels, and efficiency.
For a look at the results of one of those studies, conducted by Stanford University for The Manufacturing Institute of the National Association of Manufacturers, see the sidebar titled "Security really does pay. They also are involved in industry groups that develop and promote standards and best practices. One example is the Business Alliance for Customs Modernization BACM , which does informal benchmarking with other companies to identify best practices and audit business units for compliance with corporate policies.
In general, there are three ways companies can make strides in the areas of supply chain security and trade facilitation: taking ownership of securing their supply chains; advocating and adopting common, global security standards; and partnering with governments to manage risks.
Taking ownership The fact that a company may not survive a significant breach in supply chain security should be incentive enough to assess its vulnerability and close any identified security gaps. To accomplish that, it is no longer sufficient to simply evaluate the security of your facilities, people, and information flows.
Today, a company must assess security across its entire supply chain, and it must ensure that each partner and hand-off prevents the introduction of unauthorized materials and people. In a business environment that increasingly depends on outsourcing, therefore, particular attention should be paid to qualifying suppliers of supply chain services before awarding them any business. This requires ensuring that new suppliers have security practices in place that meet or exceed established requirements and can validate their execution.
It is equally important to work with existing suppliers to assess and address actual and potential security deficiencies. For those reasons, IBM routinely includes supply chain security language in its supplier contracts and conducts on-site security inspections of some of its suppliers' facilities. IBM has learned that securing the supply chain outside the four walls of the corporation is no easy task, but it is crucial to success. Why expend so much time, effort, and expense to validate a supplier's security practices?
If your outsourced supply chain is compromised, it's your bottom line that will be affected.
What is chain of custody? How and why is it relevant for supply chains?
At the same time, companies have to make sure that they focus their efforts and investments in a way that will provide sufficient payback. Regardless of size, they inevitably have limited resources and need to determine which security investment will provide the biggest benefit. There are times when doing that may require an innovative solution. That was the case when IBM needed to eliminate a unique risk in a specific transportation channel.
The goods were traveling internationally under the control of a single driver, but the need to make IBM-approved drop-offs en route to the final destination discouraged drivers from using standard high-security truck seals. After evaluating the cost and effectiveness of several solutions, IBM equipped a small number of dedicated trucks in that channel with electronic door seals. This technology records the global positioning system GPS location, date, and time whenever a cargo door is opened or closed. Door openings and closures are monitored, and activity at unauthorized locations is reviewed and checked to make sure it was warranted.
The technology was expensive but we determined that the benefits justified the cost. It is important for companies to "baseline" document current performance in problem areas before making any changes, and then track performance following implementation of new or enhanced security practices. From Wikipedia, the free encyclopedia. This article needs additional citations for verification.
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Our Supply Chain Security Solutions team understands these risks and challenges, and can provide a range of tools and services to effectively manage them as well as gaining and maintaining certification for Customs-Trade Partnership. Supply chain security refers to efforts to enhance the security of the supply chain, the transport and logistics system for the world's cargo. It combines traditional practices of supply chain management with the security requirements driven by threats such as terrorism, piracy, and theft.
Supply Chain Visualization. Acquire End-to-end supply chain visibility to use as a basis for further improvement projects, e.