Supply chain security refers to various efforts to improve the overall security of the entire supply chain or value chain. It combines the current security needs dictated by external threats like terrorism, theft, and piracy with traditional management practices of supply chain management. It is focused on the detection, tracking, and response of security risks at the source of the supply chain to ensure optimal productivity.
Supply chain security comes into play when there are issues with production. Security issues arise when the product, service, or inventory is being improperly handled. This could involve issues with labor, equipment, finances, or any number of other components. When issues are identified, they must be addressed and resolved to ensure that the company is able to continue to produce a product in high quality and timely fashion. Once issues are identified, they must be handled as quickly and effectively as possible to minimize potential damage.
The most common and immediate threat is the company’s reputation. Most people associate a company with their products. If an issue is brought to their attention, they will immediately attempt to remedy the situation, including issuing a public announcement. They will typically also contact their customers through a customer service phone call or email. When issues with quality are brought to their attention, they will also try to resolve the problem before a public announcement is made. Their goal is to ensure that no one is inconvenienced as a result of their issue.
In addition to protecting the company’s reputation, security issues also help to protect the products they distribute. Products that have been tampered with, fraudulently purchased, or shipped to customers have been known to be in a position where they cannot be delivered. By detecting these problems early, manufacturers can reduce the risk of having their products lost or delayed in delivery.
However, supply chain security involves more than just preventing products from being lost or stolen. It also includes ensuring that merchandise is stored securely when not in use and that it reaches its intended destinations. It involves the implementation of adequate training for all personnel involved in the handling of merchandise and in the safe storage of merchandise that cannot be distributed or sold.
Supply chain security is very important in the modern age because of how vital the worldwide trade in goods and services is. Without the proper supply chain management, a company cannot be expected to deliver on its promises. With the proper planning and the right resources, companies can avoid security issues.