Security of the supply chain is an important concern for all trading companies small or large, domestic or international. This column has often provided prospective on this important issue, such as The Question Is Not “IF” Your System Will Be Hacked Into, But “WHEN” published in February 2010. As a result of our ongoing research, we thought the following was worth bringing (with minor edits) to the attention of our readers.

Colonel Alan B. Will, Chief of Staff, 2nd Marine Logistics Group (who can be contacted at abjbwill@yahoo.com ) stated, in an article he published on the subject of supply chain security, that distributors, especially those with global reach, must become proactive in security planning. The increasing frequency of terrorism as well as security breaches occurring abroad and domestically has driven awareness to new levels.

How Serious Is The Problem?

In his article, Col. Will provides the following evidence:

• Weapons of mass destruction could be part of container shipments between nations. We know from the most recent news of terrorist attempts to ship explosive devices on airplanes.
• Cargo theft could drain precious dollars from firms.
• Employee theft costs American firms more than $40 billion a year, according to the U.S. Department of Commerce.
• Sever storms can occur anytime and anywhere disrupting shipments on land and sea.
• Bands of Somali pirates are boarding ships, taking hostages and generally disrupting commercial shipping hundreds of miles off the African coast.

Col. Will says that when properly deployed supply chain security protects firms against four threats: theft, terrorism, piracy and physical disaster. Firms should have a documented security plan addressing the following issues:

• Credentialing all personnel involved in the supply chain
• Trading partner security extending to both suppliers and customers
• Employee security awareness
• Screening cargo contents
• Security of inventory while in-transit through use of tamper-proof containers, seals and locks
• Tracking of inventory while in-transit through use of technology enablers such as a global positioning system (GPS) and RFID
• Security of items while stored in a facility
• Information security
• Disaster planning and emergency response
• Adherence to national and international standards
  
  

The New Age Of Security Awareness

Supply chain security starts with an organization’s developing a security awareness culture. Col. Will recommends that employees at all levels should be educated on potential threats to the supply chain and provided the means to counter these threats. Conversely, organizations should solicit input from employees on vulnerabilities they see. Periodic security inspections should be conducted to ensure all within an organization are in compliance with security measures.

The Colonel makes a very important point when he says, “A supply chain security plan should not adversely affect movement of materials through the supply chain”. He goes on to say that coordination of all agencies within the supply chain is a must and all links in the chain must be part of the security plan. Companies must share information such as cargo movement schedules and manifests, yet protect this information from access by the wrong people.

Adoption of Appropriate Information Technology

IT, including GPS, can be a real enabler by providing accurate real-time information on movement of materials and the integrity of shipments at various venues. It can also reduce the need for an army of surveillance personnel.

Where can organizations look to find supply chain security initiatives and standards? Some sources include:

• U.S. Customs Service and Department of Homeland Security Container Security Initiative (CSI)
• The International Organization for Standardization (ISO) 28000: 2007 supply chain security standards
• Private firm pilot initiatives monitoring container movement and integrity with RFID and GPS technology.

Final Thoughts

Vulnerabilities in the supply chain can not only cost a company monetary and human resources, but they can threaten the security of the nation. A well-coordinated and effective effort protecting our supply chains is a cost we must bear.

Agree or disagree with Holste's perspective? What would you add? Let us know your thoughts for publication in the SCDigest newsletter Feedback section, and on the website. Upon request, comments will be posted with the respondent's name or company withheld.

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