Introduction
Following the adverse effects of the September eleventh terrorist attack in the US, the security of citizens and businesses has become the main concern in both the public and the private sectors of the economy.
Security regulation has become an integral part of logistics at the global level in order to prevent acts of terror by ensuring that contraband goods and unauthorized weapons are not being transported illegally. The security protocols contribute to economic growth by preventing the losses attributed to terrorism, theft and negligence. This paper will focus on analyzing the security situation in the supply chain industry.
Analysis
Security Oriented Culture
A security oriented culture exists in the supply chain industry. The firms in the industry no longer concentrate only on the security of their goods. They have also focused on the protection of their personal who handle the supply chain activities. This has been done through training on security matters.
A lot of emphasis is currently being placed on document protection by restricting access to sensitive documents (Zalud, 2010). In order to achieve the desired security standards, the culture of collaboration is being promoted by firms in the industry. They are working together by sharing knowledge on security issues that affect all stakeholders in the supply chain. The development of trust has also become an integral part of the corporate culture in the supply chain industry (Closs, Speier, Whipple, & Voss, 2002).
This is based on the fact that the firms can not monitor all the actions of their partners in order to ensure security over their products. Thus they focus on building trust by sharing the responsibility of ensuring the security of their goods. Besides, promoting the culture of learning through sharing security related knowledge has become a priority in the industry.
Benefits of Viewing Security Issues beyond the Individual Firm
Viewing security issues beyond the individual firm has three advantages which are as follows. First, a supply chain is characterized by interdependence among firms (Closs, Speier, Whipple, & Voss, 2002). This means that a security problem in one firm, can spillover to the entire chain and cause a much bigger loss. Thus articulating the security issues at the industry level enables firms to avoid the losses and the damages that can result from security lapses in other organizations.
Second, articulating the security issues beyond individual organizations promotes cooperation and collaboration. This helps in forming partnerships that bring together the investors, regulators, clients and the government representatives to address security concerns. Such partnerships help in generating knowledge that can not be realized by a single firm. Finally, the cost of addressing security concerns reduces as firms work together to achieve a common goal in protecting their goods.
Importance of RFID Technology
The importance of RFID technology in supply chain management includes the following. To begin with it enhances visibility by providing real-time access to information about goods (Zalud, 2010). Such information helps in tracking the products or goods throughout the supply chain in order to ensure their security.
The technology facilitates efficient inventory management in the supply chain. This is because it gives accurate and up to-date information about the stock of goods. The RFID system improves the overall efficiency in the supply chain by automating the data verification process (Mentzer, 2001). This translates into a reduction in fixed costs as the RFID system assumes the responsibilities of data verification clerks.
Security Competencies that can be Difficult to Implement
First, implementing the process technology is likely to be difficult. This is because it involves acquisition and application of sophisticated technology such as a RFID system to track goods (Closs, Speier, Whipple, & Voss, 2002). Implementing the use of such technology requires talent and a lot of financial resources.
However, most organizations lack the needed talent and financial capital. Second, identifying the metrics for managing security can be very difficult (Closs, Speier, Whipple, & Voss, 2002). This is based on the fact that the success of a supply chain depends on the cooperation among firms. Thus synchronizing the supply chain activities will be very difficult if the firms develop varying security metrics.
Besides, the metrics are usually developed by the government and they become difficult to implement if their benefits to a firm are minimal. Finally relationship management is also likely to be difficult to implement. This is because most firms in a supply chain will always prioritize their interests at the expense of their partners. This undermines the efforts to establish positive relationships among the firms involved in a supply chain.
Conclusion
The above discussion indicates that security management is an integral part of a supply chain system. This is because inadequate security can lead to unforeseen losses or damages (Mentzer, 2001).
Due to the interdependence of firms in a supply chain, the firms have embarked on collective responsibility in addressing security concerns. This has been achieved by promoting a security oriented culture that facilitates collaboration and sharing of information. Besides, modern technologies such as RFID systems are being adopted in supply chain management in order to improve efficiency.
References
Closs, D., Speier, C., Whipple, J., & Voss, D. (2002). A framework for protecting your supply chain. Security, vol. 47 (9), 45.
Mentzer, J. (2001). Supply chain mangement. Ney York: SAGE.
Zalud, B. (2010). Every link in the chain. Security, vol. 47 (5), 28-33.