Supply chain risks can be costly if companies fall behind
Businesses face a variety of supply chain risks that can have significant ramifications ranging from lost revenue to damaged brand reputation.
The recent ‘Supply Chain Risk Insights 2021’, a report by the British Standards Institution (BSI), details some of the biggest threats facing supply chains today, including COVID-19[feminine, vol de cargaison, contrefaçon de marchandises, catastrophes climatiques mondiales, instabilité politique, exploitation par le travail et violations des droits de l’homme.
Basée à Londres, la BSI, âgée de 110 ans, élabore des normes techniques pour les produits et services, ainsi que des recherches, des logiciels et des services axés sur gestion de la chaîne logistique, respect des normes et cybersécurité.
Le groupe de renseignement mondial BSI, qui a mené les recherches présentées dans le rapport, fournit des analyses et des informations sur des problèmes spécifiques tels que les risques de la chaîne d’approvisionnement tels que les activités criminelles ou la durabilité, et aide les organisations à atténuer ces risques, selon Jim Yarbrough, responsable du programme de renseignement mondial de BSI. .
Dans ce Q&A, Yarbrough discute des risques de la chaîne d’approvisionnement, de ce que le rapport des informations a révélé et de ce à quoi les entreprises doivent penser lorsqu’elles se préparer à y faire face.
Quels sont certains des risques les plus importants de la chaîne d’approvisionnement auxquels les organisations doivent prêter attention aujourd’hui?
Jim Yarbrough: Ce n’est pas si surprenant, mais la pandémie a été un gros perturbateur. Une chose sur laquelle nous nous penchons beaucoup est le vol de marchandises, et la pandémie et le verrouillage ont vraiment bouleversé les choses. Par exemple, il y a eu de grands changements dans les produits qui sont généralement ciblés pour le vol. Il y a toujours des changements, mais la pandémie [spurred] in many parts of the world, the theft of pandemic-related products such as hand sanitizer and [personal protective equipment]. Now we are seeing vaccine theft – not just COVID vaccines in particular, but, in general, pharmaceuticals and vaccines are increasingly targeted by criminals.
What steps are being taken to address these supply chain risks?
Yarbrough: For things unrelated to the pandemic, the focus is much more on regulatory regimes with new laws and regulations passed and implemented around the world. We are seeing a much higher degree of attention to environmental issues and human rights issues in the supply chain. Governments are spending more time and resources addressing issues such as human rights issues in supply chains, and giving companies the responsibility to ensure they are doing all they can. to ensure that their products are not made with forced labor or mediocre labor. conditions.
Other issues such as deforestation have become important to many organizations around the world, and it is increasingly common to see regulations telling companies that they must prove that their products are not contributing to deforestation.
Has the recent Executive Order of the Biden Administration on supply chain resilience has helped draw attention to the issues?
Yarbrough: Yeah, it’s good to see that they’re making it a priority, because it’s the responsible thing to do from a government perspective. There have been supply chain regulations and programs for years in the United States, but we are now seeing that these once focused on supply chain security regimes are now expanding to include things like cybersecurity. and human rights in the supply chain, and to continue to lead. this conversation to focus on these big issues and hold people accountable.
Jim yarbroughHead of Global Intelligence Program, British Standards Institution
What are the weakest links in supply chains that increase vulnerability to cargo theft?
Yarbrough: Cargo is definitely becoming the most vulnerable in transit. You have a lot of control when you are in your own establishment, but once the products leave the establishment, things become very vulnerable. Usually ground transportation is the most vulnerable place, but air cargo is really complex. There are many more touch points to route shipments on an aircraft for shipping, so each of these touch points adds a vulnerability to product security. You will also generally be transporting more high-value goods by air freight, so air freight is getting a lot of interest, although the volume is much less than road transport.
Are there systemic ways to reduce vulnerability, such as supply chain visibility technologies?
Yarbrough: There’s an arms race between the companies that can successfully track your shipments around the world and the criminals who advance their technology to be able to hack those systems. Hacking is becoming a much bigger problem, and criminals can understand when high-value goods leave the facilities and target them much smarter than before and find the very high-value goods. So, it’s a constant effort to find out who has the upper hand over the tech right now.
What about ransomware attacks, like what happened with Colonial Pipeline, which disrupted gas delivery to the United States?
Yarbrough: What’s more worrying is that the more successful these attacks, the more the ransom is paid, the more it will proliferate. I’m trying to get away from hyperbolic statements, but this phenomenon is quite possibly the biggest concern for organizations moving forward in the near future.
How does the high visibility of Colonial Pipeline or the Suez Canal incident educate businesses and regulators about supply chain risks?
Yarbrough: These incidents and the pandemic brought risk and supply chain continuity to the fore for everyone, as many of us have felt, personally, when we couldn’t find any products from base at the store. It really pushed supply chain resilience to the top of everyone’s mind.
What’s interesting about the Suez Canal is that we’ve known for a long time that you can have a global pandemic or even a single boat causing massive disruption for an entire region. So, these single points of failure have now become relevant to the boardroom and make it all obvious to everyone involved. Previously, it was difficult for those struggling with compliance and supply chain security to get more attention and resources on this. Hopefully those arguments aren’t so hard to make any more because of all this exposure.
Editor’s Note: This Q&A has been edited for clarity and brevity.
Jim O’Donnell is a TechTarget news writer who covers ERP and other business applications for SearchSAP and SearchERP.