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.
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 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.
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.
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.