Introduction
In the past, supply chain security primarily focused on physical security and integrity relating to products. However recently, cyberthreats have risen to the forefront of supply chain security concerns. Vulnerabilities within a supply chain could lead to unnecessary costs, inefficient delivery schedules and a loss of intellectual property. It could lead to unwanted lawsuits as well. Security management systems can protect supply chains from physical and cyber threats. How do you tackle this matter in your business?
What is Supply Chain Security?
Supply Chain Security is management of the supply chain that focuses on risk management of external suppliers. It mitigates risks associated with working with outside organizations as a part of your supply chain. Supply chain security involves both physical security relating to products and cybersecurity for software and services. In the supply chain industry, multiple companies are involved and there is no single set of established supply chain security guidelines. Therefore, well-established security strategies are highly required beyond borders.
Physical supply chain security and integrity
In the past, supply chain security primarily focused on physical security and integrity relating to products. Physical threats encompass risks with internal and external sources, such as theft, sabotage and terrorism. Organizations often mitigate physical attacks by tracking shipments and checking regulatory paperwork. Moreover, vendors could be required to secure shipments following specific guidelines. External auditors or inspectors could go to a factory, and businesses could run background checks on personnel as well. Shipments could also be logged, guarded and checked prior to and after shipping to stop tampering or theft.
Cyberthreats and supply chain security
More recently, cyberthreats have risen to the forefront of supply chain security concerns. Cyberthreats refer to vulnerabilities in IT and software systems, like malware attacks, piracy, unauthorized ERP access. Supply chain security primarily involves minimizing risks from using software developed by another organization, and securing organizational data accessed by another organization in your supply chain. Organizations cannot take for granted that the software is secure.
Importance of supply chain security
Supply chain security should be a high priority for organizations. Vulnerabilities within a supply chain could lead to unnecessary costs, inefficient delivery schedules and a loss of intellectual property. Furthermore, delivering tampered products or unauthorized ones could lead to unwanted lawsuits. Security management systems can protect supply chains from physical and cyber threats.
How do you secure a supply chain?
Risk management principles can help guide your strategy for identifying threats and other potential issues. Having an in-depth defense strategy can greatly improve overall supply chain security. Best practices for securing a supply chain include:
- Log and track shipments. Use automated notifications for the sender and receiver.
- Use locks and tamper-evident seals during shipping.
- Inspect factories and warehouses.
- Require background checks on employees.
- Use accredited or certified suppliers.
- Perform security strategy assessments with local laws and governance policies in mind.
- Perform penetration and vulnerability testing on partners with which you share data.
- Authenticate all data transmission and identify requestors.
- Use permissions or role-based access to data.
- Require minimum cybersecurity or specific best practice baselines of vendors and resellers.
- Use licensed third-party auditors to certify potential partners.
- Train employees to be alert to changes and inconsistencies.
- Regularly audit open source and vendor source code.
- Restrict third-party programs’ access and permissions.
- Use network level scanning, behavioral analysis and intrusion detection to identify potential breaches.
- Have a response plan in place for quickly acting on discovered threats.
- Consult governmental guidelines and regulations appropriate for your region.
Summary
In the past, supply chain security primarily focused on physical security and integrity relating to products. However recently, cyberthreats have risen to the forefront of supply chain security concerns. Vulnerabilities within a supply chain could lead to unnecessary costs, inefficient delivery schedules and a loss of intellectual property. Security management systems can protect supply chains from physical and cyber threats. Having an in-depth defense strategy can greatly improve overall supply chain security.
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