While many company executives may believe their supply chains are reasonably secure and can easily survive a small disaster, this belief doesn't always hold true in the real world. Security issues can be prevalent at any point in a company's procurement, production or logistical processes and prove to have disastrous consequences for businesses.
A company that purchases electronic equipment to use for businesses processes or as a component in a final product needs to be aware that counterfeit goods are prevalent. A business that procures routers or network management tools from a suspicious supplier may find its systems are easily accessed by unauthorized individuals once the products are installed. This can lead to the loss of valuable business information, sensitive data being leaked and confidential financial records being made available to hackers.
Similarly, a company that sources memory chips, hard drives or other components for electronic gadgets may inadvertently procure counterfeit components, leading to a problem for consumers who can lose valuable personal information to hackers able to access their devices. It is essential that companies trust their suppliers and have policies in place that ensure their partners are providing quality components.
Even if a company is certain its strategic sourcing initiatives are sufficiently handling the procurement of essential components, it needs to be well-aware of the security policies implemented at the end of its supply chain. Logistical operations present many challenges to business leaders looking to ensure their security won't be compromised.
When corporations aim to get their goods to market, they often contract out different segments of their logistical operations. This may appear to result in short-term cost savings, but it can pose a serious security threat in the long run. Having more carriers and workers handling valuable product results in more opportunities for theft or damage, and a company may have no idea at which point in its logistical supply chain the losses occurred, making it difficult for it to pin blame or cut ties with one provider.
To mitigate this risk, businesses should have a firm grasp of which companies are handling their logistical operations and ensure all individuals working for the carrier have been screened and approved to carry such product. While such security measures may seem unnecessary, they can help prevent a business from incurring huge losses and having to rework its logistical operations in the future.