Supply chain security refers to activities to improve the overall security of the entire supply chain or value chain in the supply chain. It integrates the safety considerations of traditional supply-chain management along with the modern security demands brought about by threats such as theft, terrorism, and piracy. Although the term is relatively new, it has already been adopted by many other organizations in the supply chain, including financial, chemical and petrochemical companies, and those in the manufacturing, distribution, and assembly processes.
Supply chain security has been an evolving concept in the supply-chains for a long time now. In the early years of the 1900s, supply chain security meant the protection of valuable goods from theft by preventing them from going out of one place to another. Later on, the concept came to mean the protection of goods while in transit. However, in the current day, the term encompasses all of these aspects of security. These elements are designed to ensure the security and safety of the goods in the supply chain, as well as the organization or business that provides the services to ensure the continuity of goods while in transit.
The core goal of supply chain management is to minimize losses and minimize risks by ensuring that goods arrive at their final destination. The main goals of supply chain management are to achieve a high level of product quality, to reduce costs and increase productivity and efficiency, to control the distribution of goods, to improve customer service and customer satisfaction, to ensure compliance with federal and state laws, and to increase the value of the organization’s goods. It also aims to increase the production of a product by making it as easy as possible to create, distribute, handle, and sell. Through this process, every single aspect of the production cycle is made as efficient as possible. Thus, there is a continuous improvement in the quality of a product as well as the level of profitability.
One of the main goals of supply chain management involves the protection of valuable goods from theft. This task is usually accomplished through the monitoring of goods related movement in a warehouse or in the field. For instance, if goods in the warehouse are moving toward products that need to be shipped to a customer, then security measures should prevent the theft of the goods before it reaches the customers. Such a process can involve various different activities.
Another important component of supply chain security is the prevention of diversion of goods. In the case of transportation, goods may be diverted if they are found to have little or no use after they leave the warehouse. A diversion may be caused when they become obsolete, damaged, defective, unserviceable, or are improperly packaged. A diversion can also be caused when they are exposed to direct sunlight, moisture, heat, or chemicals. Therefore, proper procedures must be in place to ensure that the goods in a warehouse are properly packed and protected while in transit. Another thing to consider is that goods in the warehouse must always be in proper condition and packaging must be perfect. All these actions will help in avoiding the occurrence of diversion, as it can reduce the cost of transportation.
Supply chain security is also vital for the integrity of a company’s products and services. In a process where products are shipped around the world, any flaws in the packing and shipping process can cause harm to the product. It can also lead to legal problems and legal actions against the shipping company.