Freight and passenger transport facilities are frequently the targets of attacks, whether the motive be political or purely for profit. Natural disasters like the devastating earthquake and tsunami in Japan show us only too clearly just how vulnerable our transportation and logistics systems are, when, for example, key commercial harbours are taken out of commission; not to mention the far graver human suffering such events can cause. And with electronic data exchange becoming an ever-more critical part of interlinked value chains, worries about data security and industrial espionage are becoming more pronounced.
Proactive management of supply chain security is critical. This will require increased monetary and time commitments. Failure to do this will result in increased security risk, failed “validation reviews” and hold up of cargo at customs. Worst of all, in the case of an actual breach of supply chain security, a company could experience damage to brand name and bottom line.
The most fundamental areas of supply chain security management apply to virtually all parties, including value-added services transportation, storage, processing etc. These areas include:
PwC has developed a review methodology for measuring and managing supply chain security which has been used with multinational companies successfully around the world. We also developed ways to benchmark a company’s supply chain security processes against best practices and how to identify risks and spot improvement opportunities.