The supply chain is aptly-named; it’s an intricate weave of interconnected links, each one reliant on the security of the whole. This vast network, stretching from raw materials to consumption, has vulnerabilities at every point of the chain.
Recognizing and mitigating these vulnerabilities is essential to ensure the seamless flow of goods and services. Here, we look at three supply chain security trends that are helping to protect the resilience of this critical part of global commerce.
Importance of Supply Chain Security
The importance of the supply chain cannot be overstated; it’s more than the driving force behind global trade, the supply chain plays a foundational role in supporting the stability of society.
This importance is highlighted by the number of global initiatives aimed at bolstering supply chain security. Notable among these are the Customs-Trade Partnership Against Terrorism (CTPAT) whose mission is to reduce the risk of terrorism, and the Container Security Initiative (CSI).
The problem is that schemes like these can only address specific aspects of security. However, each part of the chain must have robust security in place, so let’s look at the three trends that are helping to achieve this.
The Increasing Role of Physical Security
The rising cybersecurity threat has rightfully seen a lot of resources poured into protecting data. However, the physical security threat has always been present and stringent physical security remains a must.
Technology is helping to transform how enterprises approach securing their infrastructure and goods. Among the advanced technologies being used are:
- Advanced Monitoring Systems: Utilizing AI-enhanced surveillance systems, including thermal imaging CCTV cameras and other sophisticated technologies, for comprehensive surveillance and protection of assets
- Innovative Cargo Screening: Implementing cutting-edge technologies for efficient and thorough cargo screening
- Access Control Systems: Employing advanced access control systems to regulate and monitor access to facilities and sensitive areas within the supply chain
Strengthening physical security is fundamental in minimizing risks and ensuring the smooth and secure operation of the supply chain.
Securing the Digital Threat: The Role of Cybersecurity
It’s impossible to discuss supply chain security trends without covering the essential role of cybersecurity, and therein lies a double-edged sword. The switch to remote work practices and remote access to systems has streamlined the supply chain to an incredible degree; but, it has also opened up a host of cybersecurity vulnerabilities.
The cost of a data breach is huge and has immediate and long-term implications that can devastate a supply chain. Among the trending cybersecurity measures that are helping to defend the supply chain are:
- AI-Powered Security Solutions: AI is already helping shipping lines improve operations, but it is also increasingly used to enhance cybersecurity and can be used to detect threats in real time without reliance on traditional techniques
- Blockchain for Secure Transactions: Utilizing blockchain technology to ensure secure and transparent transactions within the supply chain
- Regular Security Audits and Assessments: Conducting comprehensive security audits to identify and address potential vulnerabilities
According to a report by the Harvard Business Review, 83% of companies experienced more than one data breach in 2022, with publicly traded companies suffering an average stock value decline of 7.5% as a result.
These figures underscore why cybersecurity is likely to be on this list for the foreseeable future.
Technology Integration: Enhancing Supply Chain Security
It is no accident that technology seems to have been the underlying theme of this article; recent dramatic advancements and innovations like AI and cloud computing are transforming the supply chain and its logistics.
However, as discussed in the cybersecurity section, while there are potential downsides to this transformation – there are also plenty of positives to consider.
Among the technologies that are trending in supply chain security are:
- IoT for Real-Time Monitoring: Employing IoT for real-time monitoring and tracking of goods and information
- Blockchain for Enhanced Transparency: Utilizing blockchain technology to ensure transparency and security in transactions and information exchange
- Advanced Analytics for Risk Management: Leveraging advanced analytics to assess and manage risks effectively, ensuring timely and informed decisions
The role of technology in protecting the supply chain is increasing exponentially; and this is a trend that will continue as technology like AI continues to evolve.
Securing the Weakest Link: The Importance of Supply Chain Security
These are uncertain and challenging times for all of society, and the security of the supply chain must play an integral part in helping to ride out these challenges.
The good news is that technological developments ranging from the quality of components, such as cameras to the use of AI, are helping firms rise to the challenge; still, we still need to be diligent and this has to be the most important supply chain security trend of all.
