Security Solutions of Supply Chain Management

Abstract

International trade is an essential driver for economic prosperity. The global trading system is vulnerable to terrorist attacks that could severely damage the entire global economy. Articles on supply chain teach us the basics of visibility, variability, velocity, and value (the 4 Vs conception). At the same time there is no word about vulnerability! The supply chain is clearly vulnerable; therefore Supply Chain Security (SCS) doubtlessly comes to the fore as an issue of high priority. In today’s global market, a terrorist incident or attack involving a critical segment of the supply chain infrastructure will impact you anywhere your business is located. If a company chooses to invest in new security protocols and its competitor does not, the company may have to raise its rates, which could in its turn drive business towards the competitor’s. Let us take the question of increased security and apply it to the hotel industry. Four of five hotels in one city, for example, have great security procedures, but the fifth hotel has none. It is fair to assume that this hotel’s guests are more at risk for robbery, assault, or even a terrorist attack. Should the unsecured hotel fall victim to a terrorist attack, all hotels in the area will lose substantial revenue and business – not just the hotel that didn’t invest in security procedures. The same principle can be applied to companies operating within every aspect of the global logistics industry. A successful attack on this vital conveyor of the global economy will impact business around the world. While the interconnected nature of the global market is great for business, it is exactly what makes securing the supply chain so challenging. SCS refers to efforts of enhancing 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 of the system, which are driven by threats such as terrorism, piracy, and theft. The appropriate platform for this initiative is readily apparent.