Supply chain security refers to actions to improve the overall security of the logistics or supply chain, which is the transportation and distribution process for goods. It involves the various security needs dictated by threats like theft, terrorism, and piracy. In fact, there is now a great demand for a variety of industries which have developed their own supply chains. Some examples of industries which have adopted the concept of supply chain security are: food manufacturing, pharmaceutical, petrochemical, automobile, military and financial services.
The main goal behind the development of supply chain security has been to improve the productivity of organizations and decrease labor costs. The increased productivity can be achieved through better and faster distribution process. The increased productivity can also be achieved through better utilization of labor, lower costs and lower operational costs.
There are several benefits of supply chain security. The major benefit is that it helps in the maintenance of the company’s profitability, which in turn leads to the reduction of expenses. Another benefit is that it also helps in improving the efficiency and effectiveness of the companies. In addition to these benefits, it also helps in enhancing the customer service levels.
Supply chain security is a complex task, which requires extensive knowledge and expertise. Moreover, it requires the adoption of several new technologies that are required for implementation. These include data security, computer network, and computer applications. This also requires the adoption of a comprehensive security program, including compliance and training programs. Moreover, it is necessary to ensure that all the personnel involved in the implementation of the program are skilled and trained professionals.
The main goal of supply chain security is to provide peace of mind and confidence to the suppliers and customers. This helps in the decision-making process of the suppliers and allows them to work freely without fear of losing their investment. Further, it helps in reducing losses and helps in reducing risks. In addition to these benefits, it provides an opportunity for the suppliers to share their experiences and knowledge with other suppliers and clients in order to promote good relationships and mutual learning.
The success of a supply chain security depends on a number of factors. The factors include proper planning, monitoring and controlling of risks, monitoring and controlling fraud risks, and improving security and controls, identifying risks and providing protection and providing solutions, creating awareness among potential suppliers, evaluating risks and developing the plan for the organization and its customers and suppliers, making use of knowledge and technology to reduce risks, and increase control, and improve management of costs and improve service, and customer satisfaction, and productivity. This includes implementation of proper security procedures, training of staff in risk management, training of management, developing effective strategies to protect assets and implementing and assets’ security and monitoring of the business. Finally, it also includes the application of preventive and reactive security techniques and preventive methods.