Supply Chain Security Risk
In a recent report from AMR on Supply Chain Risk Trends, supply chain security topped the list of the risks which have seen the biggest growth of the year. This is indicative of the problems faced by global supply chains involving long lead times and transits. Economic recovery seems to have reduced the risk perception around volatile energy / transportation costs and Supplier failure.
Supply Chain Security Risk has been a constant source of risk to ever expanding supply chains. A global supply chain is vulnerable to hijacking, terrorist attack, pilferage, security of field personnel, safety of equipment and vehicles etc. The approach toward supply chain security risk is to focus on physical risks at operational level. Security of product and people across the entire supply chain requires more proactive, overarching and strategic approach.
To address this, International Organization of Standardization published ISO 28000 series which was jointly developed by ISO/TC 8, ships and marine technology and other stakeholders. The series consists of -
· ISO 28000: Specification for security management systems for the supply chain.
· ISO 28001: Best practices for implementing supply chain security – Assessments and plans – Requirements and guidance.
· ISO 28003: Requirements for bodies providing audit and certification of supply chain security management systems.
· ISO 28004: Guidelines for the implementation of ISO 28000.
ISO 28000 provides critical base to established supply chain security initiatives, including C-TPAT and Authorized Economic Operator Programme, which are adopted by almost all the multinational companies in the world. Also, the terminology of ISO 28000 is very similar to other widely adopted standards like ISO 9001 and ISO 14000. Ease of cross referencing to these adopted standards makes life easier while adopting ISO 28000. The benefits of early adoptions are significant.
· Enhanced mitigation against theft, damages, smuggling etc.
· Better image, predictability and credibility due to secure supply chain.
· Enhanced performance across the entire supply chain.
· More predictable cross-border transits and process
· Better customs regulations and process compliance
· Integrated view on Enterprise Resilience & Systemized Risk Management approach.
· Aligned terminology and conceptual usage
ISO 28000 standards can be adopted in supplier contracts and international carriers may embrace them for competitive edge. But more importantly, it will be adopted as the global standard for Supply Chain Security as it is a real need of the hour. And in my guess, this will happen earlier than we expected!