Supply chain security (also "supply-chain security") activities aim to enhance the security of the supply chain or value chain, the transport and logistics systems for the world's cargo and to "facilitate legitimate trade". Their objective is to combine traditional practices of supply-chain management with the security requirements driven by threats such as terrorism, piracy, and theft. A healthy and robust supply chain absent from security threats requires safeguarding against disturbances at all levels such as facilities, information flow, transportation of goods, and so on. A secure supply chain is critical for organizational performance. Typical supply-chain security activities include:

Overview

According to the Office of the Director of National Intelligence in the United States, "adversaries exploit supply chain vulnerabilities to steal America’s intellectual property, corrupt our software, surveil our critical infrastructure, and carry out other malicious activities. They infiltrate trusted suppliers and vendors to target equipment, systems, and information used every day by the government, businesses, and individuals." Local police departments often lack the resources to properly address supply chain security.

Transit theft

Theft and shrinkage can take place anywhere in the logistics chain: from the shipper, carrier, or consignee. It may be packages, pallet loads, and full truck loads. It can involve individuals with an opportunity to take cargo or can involve organized crime. Security systems involving surveillance systems, tracking systems, and broader corporate security are needed to reduce the theft of material.

History

The terrorist attacks of 9/11 were the defining event for modern supply chain security. Before 9/11 supply chain security was primarily the concern of the insurance and risk management industries; after the attacks more structured approaches were implemented. Early efforts were dominated by concerns over the use of maritime shipping to deliver weapons of mass destruction. From 2001 to 2006 efforts focused on the physical security of goods and shipments but from 2012 on focus shifted to cybersecurity as the awareness of cyber threats grew. The European Union also treated the 2010 transatlantic aircraft bomb plot involving packages being sent from Yemen to the United States, as a significant factor in relation to supply chain security. The European Union's regulation on the Community Customs Code (2008) includes reference to supply chain security in its outline of the mission of each EU customs authority:"Customs authorities shall be primarily responsible for the supervision of the Community's international trade, thereby contributing to ... overall supply chain security." In February 2021 US President Joe Biden made supply chain security one of his administration's priorities.

Key initiatives

There are a number of supply-chain security initiatives around the world, including:

International agreements

Supply chain cyber security

Supply chain cyber security is a subset of supply chain security which focuses on the digital aspects of the traditional supply chain as well as the supply chain for electronic and digital goods.