If a business finds that a particular supplier is constantly letting them down, there are several steps they should take:
- Firstly, identify whether you can employ some similar external suppliers or contractors to reduce reliance on a single source.
- Secondly, an organisation should communicate their security concerns and needs across the supply chain. This may include documenting criteria for any third party supplier, ensuring they are aware of any limitations and minimum security requirements. This may include things like sub-contracting, particular freight routes or particular checks that must be in place.
These requirements may differ depending on the supplier and where they are within the supply chain. Evidence may be required from all parties involved that minimum requirements have been met.
This may not be possible for some suppliers, but you may maintain supplier relationships by providing support and training where necessary. It is also good practice for a business to adhere to their processes and make them as simple to follow as possible — ensuring clear communication channels and that any documentation is sent out regularly.
3. Check arrangements
This part of the process is based on maintaining a business’s good practices across the supply chain. At this point, we will have identified any non-compliance by vendors. Companies may have adjusted their supply chain security to either accommodate those suppliers or have found new partners to work with.
It’s vital to implement contracts with these partners and build any security processes into the contract, along with “the right to audit”. These procedures may be cyber security like software or certification requirements or a particular process to protect products and services.
Establishing key performance indicators across supply chains encourages good behaviours in suppliers, leading to reduced cyber threats and physical threats, improving overall physical security in offline supply chains.
4. Continuous improvement
Any smart organisation should have supply chain security that’s constantly evolving. Just as a business changes, the risk management of a supply chain will change along with it. A further risk assessment should take place each time something changes in a business’s supply chain and include close collaboration with the vendors involved.
By working closely with suppliers, companies can understand any limitations that a supplier encounters and make allowances within their timelines for adjustments. You should clearly communicate timelines along with any concerns. The better the lines of communication are, the more likely companies and suppliers will work together to improve security. This may require flexibility in some cases. Communicating regularly will build trust and understanding of the expectations at each step of supply chain security.
If an organisation values the safe arrival of goods, the protection of products and services and ensuring that customers’ data is secure, then supply chain security is essential. This begins with supply chain management, a hugely valuable service for maximising the efficiency and ROI of a supply chain.
