1 Module 7 Chapters 20 lessons Advanced

About this course

Security is the condition of an individual, a community, an organization, a societal institution, a state, and their assets (such as goods, infrastructure), to be protected against danger or threats such as criminal activity, terrorism or other deliberate or hostile acts, disasters (natural and man-made).

Course Structure


Supply Chain Security

Security is the condition of an individual, a community, an organization, a societal institution, a state, and their assets (such as goods, infrastructure), to be protected against danger or threats such as criminal activity, terrorism or other deliberate or hostile acts, disasters (natural and man-made).

Overview Of Supply Chain Security

Need for Supply Chain Security

Securing information, material, cash and process is the most important aspect of the supply chain. The supply chain security combines physical security and information flow/cash (electronic fund) flow security elements with a process orientation, for making decisions about actions which should be taken.

Payoff From Supply Chain Security

Tangible and intangible benefits of supply chain security are rarely fully discovered and assessed.

Evolution of Supply Chain Security

For the first 25 years of its lifespan, security was given a low priority in supply chain. As the challenges and threats in the supply chain have become complicated, security level has also increased in the supply chains.

Comprehensive Supply Chain Security Framework

One of the biggest benefits of this course is that for the first time on earth you can see the full picture of all the elements of supply chain security in one simple to access framework. 

Threats To Supply Chain Security

Security-based disorders can occur at various points along the supply chain. One of the major sources of security concerns in the supply chains are cargo containers, as these vessels can be used for smuggling illegal immigrants, terrorists, weapons and drugs. For example, In Italy, a suspected terrorist was found in a container with a false aviation mechanic's certificate, maps of airports, and security passes (he later escaped while on bail) (The Economist 2002). The consequences of the use of a WMD (weapon of mass destruction) or discovery of such a device in a container can be serious; estimates suggest that a WMD explosion and the resulting port closure could cost $1 trillion, while a twelve-day closure following discovery of an undetonated WMD could cost $58 billion (O'Hanlon 2002, Gerencser et al. 2002).

Risk Evaluation in Supply Chain

Risk evaluation is done on the basis of the threats/ risks for the supply chains which are mentioned above in detail. Evaluation of risk is necessary to have an efficient supply chain strategy and also show the readiness of the supply chains, if any unwanted accidents. Kidnapping of key personnel, damage of goods during transportation, thefts (such as information, goods) occur during supply chain processes.

Regulations Affecting Supply Chain Security

The aim of these supply chain security programs/regulations is to identify security risks in advance to the movement of materials/goods. They are essential to government agencies (such as customs administrations) to make efficient use of limited enforcement resources, improve controls at the state/country borders and ensure that trade continues while extending controls up and down the supply chain. To meet these objectives, enforcement agencies (like Customs) aim to become an integral part within the supply chain.

Allies to Help Secure Your Supply Chains

The allies in a supply chain security are the regulations, organizations, partner companies and the government bodies which assist in reinforcement of laws for ensuring value chain’s security. Given below is the list of key allies for the internal and external security elements of the supply chain security.

Elements Of Supply Chain Security

Elements Of Supply Chain Security – Internal and External Elements

Global Supply Chain Group has identified elements of the supply chain security to enlighten security vulnerability across the supply chain which can be broadly divided into two major classes of elements, internal and external elements.

Internal Elements of Supply Chain Security 1 – Personal, Asset and Process Security

Two key remaining internal elements are monetary and information security. 

Internal Elements of Supply Chain Security 2 – Monetary Security and Information Security

Visibility is the main factor that directly effects customer satisfaction and volume of business. Visibility itself means several things. Clearly, it means "where are things located?" That is kind of a universal concept, but also visibility can mean other things and it often does. It often means specificity.

External Elements of Supply Chain Security Part – I

External elements are the elements involved from outside in the supply chain security such as regulations and cross border logistics. These factors are considered while framing supply chain strategies.

External Elements of Supply Chain Security Part - II

Securing the supply chain is one of the prime concerns of the partners in the value chain. With evolution of the supply chain strategy, security has attained significant importance in the supply chain in the current scenario.

Impact Of Business Decisions On Supply Chain Security

Impact of Procurement Decisions on Supply Chain Security

Composition of the raw material is another key aspect of procurement. If the raw material is not in the right composition, it would affect the quality of the product which is planned and designed by the research team of the company.

Impact of Manufacturing Decisions on Supply Chain Security

Manufacturing processes need to be improved to reduce the damage of goods during manufacturing operations. Other requirements to be improved in manufacturing process are product handling, checking the product right from work in progress status to the finished goods. Whenever the product is found damaged or not in the right condition to proceed towards the finished goods section, it should be taken off from the running process, modify and reuse this damaged material for preparing another product.

Impact of Marketing and Distribution Decisions on Supply Chain Security

Optimum level of visibility is required as too much visibility can make supply chains vulnerable to attack while too less visibility may reduce customer satisfaction.

Role Of Technology In Supply Chain Security

Role Of Technology In Supply Chain Security

Network encryption by applying protections above the data-link level but below the application level, network encryption can use existing network services and applications. Network encryption is generally handled through Secure Sockets Layer (SSL), but IP Security (IPSec) can be used for large-scale systems. Data protection covering transactions both in transit and in storage, this control helps to ensure data integrity and reduces the risk of fraud.

ROI On Supply Chain Security

ROI On Supply Chain Security

Implementation of supply chain security measures involves a huge capital investment by the company. However, these implementations have led to greater information and cargo security and consequently increase ROI. Measures such as use of RFID technology, implementation of regulations (CTPAT) are widely used across various industries in global supply chains.

Case Studies in Supply Chain Security

Case Studies

Case studies of implementing supply chain security measures and variation in ROI after implementation are given below in detail. These cases studies are demonstrated to explain the impact on ROI after implementing security measures of the supply chain.

Best Practices in Supply Chain Security

Best Practices

Global Supply Chain Group identified best practices according to the elements of the supply chain security. These practices are migration strategy which should be implemented at all the levels of the supply chain to ensure secured supply chains.