Understand the key components of the supply chain and what it takes to keep your people, products, and operations protected.
The old saying about not appreciating a good thing until it’s gone was proven in a big way with the global supply chain crisis in 2021.
A direct result of the disruption caused by the pandemic, the supply chain crisis brought empty shelves, delayed construction, soaring prices, and frustrated people around the world. Things calmed down eventually, but the supply chain, which was once low on the list of concerns for many, has retained a more prominent place in the spotlight.
While there isn’t always a lot that can be done by companies to prevent global pandemics, trade wars, or natural disasters, companies can mitigate the impacts of another potent problem: security threats.
Manufacturing security is crucial, but, like the supply chain itself, it has so many layers to it that it can be difficult to know where to begin. Read on for the six core components of the manufacturing supply chain, the benefits and challenges of each, and strategies for how to mitigate those risks.
The core components that make up the manufacturing supply chain include:
Each component is integrally connected with the others, but they each present their own set of security challenges.
Includes: raw materials, finished products, and equipment
The inventory created through the manufacturing supply chain is the reason the supply chain exists in the first place, but the raw materials, expensive machinery, and products themselves are the biggest draw for thieves.
“More criminals are turning from traditional crime, [and] the reason why they’re attracted to cargo theft is that it’s very, very low risk and very, very high reward,” the founder and CEO of a supply chain integrity company said in a CNBC article. The supply chain offers criminals the chance at a large volume of goods to steal, and often these goods are already conveniently packaged for transportation.
It’s not just the loss of product that is a cause for concern, however; sabotage and vandalism can lead to major financial losses. Bad actors who damage production line machinery can cause extensive problems, with costs far outpacing the actual repairs between delayed timelines and frustrated customers.
What’s more than this, recurring thefts or acts of sabotage can cause doubt that a company is really up to the task of protecting its lines, costing future business opportunities and threatening current contracts.
The protection of assets relies on strong security in every other aspect of the manufacturing supply chain.
Includes: manufacturing facilities, warehouses, and distribution centers
Each manufacturing facility, warehouse, and distribution center plays a crucial role in the supply chain. Unfortunately, each of these also represents yet another location where raw materials or goods can be stolen.
Since the job of these facilities is to create or store product and then send it on to the next phase of the supply chain, these are places of constant motion, making it easier for wrongdoers to slip through the cracks.
To protect the employees, goods, and machinery housed in these locations, it’s important to implement strong plant security systems from the outside in. Securing the perimeter of the building can create an important barrier against trouble.
Facility protection strategies:
Includes: any mode of transport used for products
Without transportation of goods between locations, the manufacturing industry would be completely unable to function. The transportation element is where goods are often most vulnerable, however, as thieves can break into shipping containers, intercept shipments, or even present false documents and make off with a truckload of goods without resistance.
A key element of manufacturing security is protecting goods as they make their way through the supply chain, but that’s often easier said than done, especially considering the advancing tactics of bad actors. Companies must consider every element of the transportation process when implementing security measures, from tracking to storage to surveillance.
Transportation security strategies:
Includes: cyber-physical elements, supply chain data, intellectual property stored digitally, communication systems, and any other digital elements
The addition of digital management and communication to the manufacturing supply chain has completely revolutionized it. Instant file sharing, remote commands, improved processes, and more are all possible because of the cyber side of things. This increased efficiency and instant communication comes with significant cyber risk.
Because of the digital and remote integration, nearly every part of the manufacturing supply chain is potentially vulnerable to a cyberattack. Hackers can gain access to vital internal infrastructure through virtual backdoors built into commercial or open-source software, or they may even get in through phishing scams fallen for by unsuspecting employees.
However hackers gain access, cyberattacks can cause a significant disruption in operations, impacting the entire line and delivery times. They can also lead to the loss of critical information, such as personal data or intellectual property. In turn, the loss of intellectual property can result in reputational damage, the loss of competitive positioning, and more.
Cybersecurity solutions:
Includes: regular employees and temp. workers
Manufacturing security needs to both protect employees and protect from employees. The manufacturing industry is known for its high turnover rate, which can easily equate to a lack of loyalty and a high likelihood for intentional and unintentional problems.
While it’s important to believe the best of employees, it’s also important to stay realistic in terms of the damage those very employees can cause through theft, sabotage, or even simple acts of carelessness.
Employee security strategies:
Includes: suppliers for materials, vendors who handle different parts of the production process, and vendors who offer software or services
Working with suppliers and other vendors is a regular part of the manufacturing supply chain, but it opens the door to a host of potential problems and other issues. Each vendor has its own employees, policies, and practices, and if any problem arises, those issues fall squarely on the shoulders of the company employing them. Not to mention that weaknesses in vendor security also represents potential product losses and increased cyber threats.
It’s vital, therefore, to work with reputable vendors who are transparent and thorough about their employees, practices, and security measures.
Vendor security strategies:
LiveView Technologies® understands the value of security on both a physical and digital level. Protecting people, products, and businesses as a whole is the reason why we offer a top-of-the-line mobile security unit. Interested in how our mobile security units could help protect your manufacturing supply chain? Contact LVT for more information today.
