Logistics Security: Why is it important in Supply Chain Management?

Logistic services and supply chain is a close-knit system that is spread across the world. A well-defined system with secure means is of paramount importance. There are many perils like terrorism, piracy, malicious attacks, digital threats, and cybercrimes that can derail the smooth logistics process.

Alleviating these dangerous concerns necessitates a meticulous security system. Logistics security measures have to be prudently established and pursued. Even a minor lapse in the secure environment can cause a cascading effect. Eventually, it impacts the supply chain. Strong logistic security is imperative for a credible firm.

Hence, the logistic services and shipping companies should observe innovative digital, physical and material security aspects. Thorough professionalism and personnel with expertise in the security regime are vital for every shipping company to maintain a seamless supply chain.

What is Supply Chain Security?

Supply chain management is a complex arena, wherein the logistics management solutions must have a well-formulated process in place. Supply chain security is a prominent part of supply chain management, without which the logistics services are incomplete.

The supply chain security would examine, identify, and eliminate anomalies, discrepancies and glitches that may lead to security lacunae. All the stakeholders in the supply chain including third-party vendors, suppliers and logistics firms are to be in the same line to ensure secure transportation lines.

Supply chain security would involve material security, cyber security, and information security. Specifically devised regulations and governmental orders have to be followed to prevent security issues in the logistics chain.

Why Supply Chain Security is Important?

Supply chain security has to be ensured by logistics companies at any cost. Improper security measures can lead to many issues.

Affect the credibility of the organization Cause loss of property, which means financial loss Disrupt smooth logistics operations Productivity of the firm may go down consequently Unwanted budget overheads Efficient cargo movement can be ensured Prevent tampering with shipments

Read More: Top 10 supply chain and logistics technology trends in 2022

What are the Best Methods for Supply Chain Security?

Supply chain security is a combination of multiple methods. It can be effective only if all the laid down measures function properly. A generic supply chain security may not be a viable option. Each logistics firm must formulate a specific methodology, depending on varying factors. Analysis and assessment of the security threats and evaluation of the existing process are vital for designing the security processes.

Constant monitoring of various shipping services such as air freight forwarding, ocean freight forwarding, and land freight forwarding. Digital technology may be considered for automated tracking of the logistics services, as well as, initiating notifications.

Innovative tamper-proof locking methods that allow quick identification in case of foul play must be in place.

Frequent inspection of premises, including packing and despatch sections.

Third-party inspection and auditing of the logistics services.

Handpick employees only after a thorough examination and detailed background checks only.

Associated with established firms and proven enterprises only. Avoid taking unknown third-party firms on board.

Revise the supply chain security in place on specific periodicity and introduce modifications as and when required.

Data audit and cyber audit must be undertaken on a frequent basis. With the cyber threat looming, hire a proven firm for the same.

Only a group of authorized personnel must be allowed to access crucial data.

Undertake third-party audits from time to time.

Allowing third-party software and programs must be done only after in-depth analysis.

Have a team of cyber experts in the company. They must be monitoring the digital channels constantly.

Never allow complacency to overpower your decisions.

Once you have all these steps in place, you can expect to have diligent supply chain security in place.

How Cyber Threats are Affecting Supply Chain Security?

The Digital revolution has brought in many advantages. As with anything, it also has caused a lot of concerns as well. Cyber miscreants have been using illegal methods to disrupt logistics services and to garner profit from that. This scenario makes cyber security an unavoidable aspect of supply chain security.

Cyber concerns that can affect your smooth logistics operations are:

Vulnerabilities in software systems that can be exploited by cyber miscreants Malware attacks Data theft Unauthorized ERP access Hacking and Trojans

The supply chain cyber security focuses on using software and programs from approved firms only. Once installed, you will be able to control the accessibility of the software. Even the firm that designed the software should not be capable of accessing it. Secure software is crucial for maintaining safety and security in this digital era.

Read More: The Top Challenges for Big Data in the Supply Chain Management Process

It may not be possible to cut off the software developer completely. In that case, the only way ahead you are left with is to hire only proven software design and development firms. Even though they may charge exorbitantly, the data and systems will be safe with them. You should not end up with the wrong firm just to save some pennies. It can eventually destroy your company.

Cybercriminals can access sensitive data stored online if the security system is not strong. They can ask for a ransom or sell it to your rivals to earn a profit. Better to be vigilant all the time for maintaining logistic security.