Here’s what we learned during COVID: Many companies lack true supply chain security. Supply chains can be massively intertwined, global, and as we have learned over the past two years, vulnerable. Rand Corporation says, “Supply chain vulnerability stretches across whole sectors of the U.S. economy and is a national security issue in that sense: a set of interests that if disrupted could directly affect the health and well-being of the United States and its allies.”
From a security perspective, the supply chain is incredibly vulnerable at each link. From the manufacturer or the third-party vendor distributor to transport and storage in your warehouses, there are critical best practices to consider.
What is supply chain security? What are the top supply chain security best practices to consider?
What is Supply Chain Security?
Risk management in the supply chain is a full-time job. Think about all of the moving parts that make up your chain. Supply chain security tries to ensure physical risk mitigation. Supply chain security also works to protect external supplies and communications between companies online.
Let’s break down these two very different areas of your supply chain security.
Physical Supply Chain Security
This can include:
Top Five Supply Chain Security Best Practices
When goods are in warehouses, in transit, or at work sites, how should they be secured? When data is flowing between you and your vendors, what can you do to protect it? Here are five supply chain security recommendations for physical and digital peace of mind.
Table of Contents
1. Build a Redundant Supply Chain
COVID taught our logistics teams one big lesson: Have a backup plan. The best supply chains don’t just feature a plan A but also a plan B. This could include extra inventory or the use of multiple suppliers for every part in the chain. Since COVID, we know some companies have shored up their supply chains by building new relationships with local or regional vendors in the U.S. After years of offshoring, many companies are bringing supply chains local again.
2. Purchase Cargo Insurance
Every shipping carrier offers some form of liability coverage. Supply Chain Management Review says it’s not enough. They recommend additional cargo insurance to cover your materials during the transportation process. They also point out that more than 10,000 containers fall into the ocean each year during severe weather. Another issue is criminal incidents with ground transport vehicles. Cargo insurance can add protection for both transported and warehoused goods.
3. Evaluate and Communicate with Your Supply Chain Partners
Screening your vendor partners for cyber and physical security measures should always be a supply chain security best practice. Evaluating the risks associated with each vendor is a critical part of supply chain security. This can help ensure the quality of the goods you source. It can also help you identify the potential for risks.
4. Use AI-Powered Software
Artificial intelligence (AI) is making its way into our cybersecurity tools. You’ll find these algorithms in things like building access tools. But the place where AI has made real inroads is in video surveillance. Entrepreneur says, “The growing use of artificial intelligence (AI)-powered video analytics over the years has radically altered and improved the operations of many processes.” AI cameras can gather important data online via their video feed. These tools can flag any process abnormalities. Then they can send automated alerts to any digital device. AI cameras can monitor the activities of people interacting with your inventory. You can even use these tools on delivery trucks. Truck cameras can record the supply chain disruption. But behind the scenes, the AI software can detect and respond in real-time. It’s a one-two punch that can improve your supply chain security.
5. Increase or Improve Video Surveillance Tools
The best supply chain security for warehoused material is video surveillance. This isn’t just for you, but also for the vendors who support your supply chain. Supply chain security starts with sophisticated monitoring tools to deter, stop, and prosecute crime. These tools help both with employee and external threats.
Today’s video surveillance tools are increasingly smart. AI software powers a better response if the camera detects an abnormality. These cameras can be solar-powered and Wi-Fi enabled. You can place them literally anywhere. An easy-to-use internet hub allows warehouse supervisors to control the camera’s movements. You can zoom in on questionable behaviors at your loading dock, for example. You can couple your cameras with virtual security guard monitoring, where trained experts watch your facilities from afar. These are just a few of the video surveillance camera features offered today.
Supply chain security best practices start with a call to Pro-Vigil. We are the nation’s leading video surveillance expert. We can help your business shore up supply chain security. Chat with us today.
