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Importance of Supply Chain Security

Posted on September 7, 2020 by admin

Supply chain security refers to efforts undertaken to improve the overall security of the supply chain or supply value chain, the logistics and transportation system in the world. It incorporates the security needs generated by threats like theft, terrorism, and terrorism-inspired violence. In a way, supply chain security is a strategic approach to reduce the likelihood of an attack, reducing the risk to goods and human life, and to prevent loss of life.

supply chain security

Supply chain security involves a comprehensive management system that ensures the security of supply chains. Its goal is to make sure that the entire process has a greater level of security. For example, if a shipment of goods to an airport is delayed, it may require further delay in shipping to another location. This further delay will increase the cost of shipping and the amount of damage to goods while in transit.

The objective of supply chain security is to reduce or eliminate the risks of human harm and loss. Supply chain security also involves reducing the risks of cargo theft and cargo loss. Security can also be provided by ensuring safe shipping of goods by using the safest methods of delivery such as air cargo, water, or land shipments. It can also involve protecting goods from natural or man-made threats like storms, earthquakes, or landslides.

There are several types of threat that can affect supply chain security. It can include terrorism, which can cause significant damage to the supply chain and may result in loss of life. It can also include natural disasters like floods and tsunamis. Other common threats include spillages from industrial equipment and fuel leaks.

The other type of threat that can affect supply chain security involves the use of weapons. This includes sabotage, which can cause major damage to the chain. It can also include theft, which can occur at any time in the production process or through the shipping process.

Supply chain security can significantly improve the security and safety of a supply chain by preventing the risk of loss of life and damage to goods while in transit. It can also provide measures that reduce the risk of damage or theft caused by natural disasters.

The United States Department of Homeland Security (DHS) and the European Commission’s Joint Research Centre have developed and implemented several measures that enhance supply chain security. These include developing a standard method for identifying and assigning an individual risk manager to a specific department in a company, improving employee training on risk analysis and hazard identification, and improving employee awareness and communication about the risk posed by their jobs, and their duties in relation to risk management, developing a database for tracking company activities and implementing a standard risk assessment process and standard procedures for managing risk.

Supply chain security can help to increase company efficiency and improve business profitability by reducing the risk of loss of life, property, and money. However, there are a number of important issues that must be addressed before it can be fully effective. To ensure the effectiveness of security measures, companies need to implement strategies that deal with all types of risk.

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