Understanding supply chain security

When businesses are trying to get a handle on their supply chain efficiency, one of the biggest areas for improvement is security. Simply put, too many companies see it as a component of their operations, but may not ascribe it the importance it necessarily deserves. There are many different components to such an effort, and all of them may need an extra look for any firm to truly control its various supply chains.

Among these issues is the increased threat of a hacking attack, which have become more prominent as hackers around the world get a better understanding of the potential value these targets provide, according to CSO Online. In the past several months alone, a number of major companies both in the U.S. and abroad have been hit with attacks, and government agencies the world over are becoming more proactive in fining affected businesses above and beyond the financial obligations that come with remediating such an attack.

Hackers pose a grave threat to supply chains.

This issue is a particular problem for companies that partner with third-party service providers and other outside businesses - a crucial part of many supply chains, to be sure, the report said. Even if everything is in order with a company's own security issues, it can be difficult or even impossible to enjoy such certainties when it comes to partners at any given step of the supply chain. However, all necessary efforts must be undertaken to get as much assurances as possible around supply chain security.

A bird's-eye view
The more companies can do to get a handle on third-party attacks, which by some estimates have risen by as much as 50% in recent years, the better off they will be as it relates to mitigating hacking risk, according to Infosecurity Magazine. While all involved will have to accept a certain amount of delegation in this regard, a concentrated group effort throughout the supply chain will at least provide more visibility into all aspects of risk and operations, which may be key to spotting potential vulnerabilities.

This is, of course, a complex and potentially costly process, but more buy-in from all participants
provides not only the security those involved need, but also reduced risk of accruing the expenses associated with a data breach cleanup effort and potentially greater regulatory oversight, the report said. In many cases, this may require collaboration, spelling out goals and so on, but the end result would typically yield peace of mind and cost certainty.

What's being done?
Today, those in a position of authority have a greater understanding of the threat they face and are willing to invest appropriately to address it, according to the new Future of the Supply Chain survey from Vuealta. More than 4 in 5 U.S. businesses now believe the increasing complexity of the supply chain poses a risk, and more than half have at least five other companies in those processes. Not surprisingly, more than 2 in 5 say they are relying on new technology to help insulate them from risk.

The more your company can do to identify threats and move to address them collectively, the better off all involved will be.