Walmart’s popularity boils down to one thing: keeping its shelves stocked with products people want at competitive prices. One could argue that its entire reputation rests on a highly efficient supply chain.
Hypothetically, if the company were to allow its supply chain to deteriorate, its market position would plummet. Likewise, any company that neglects to ensure that its supply runs smoothly, securely and efficiently faces unimaginable risk.
On that note, it’s sobering to admit that the number of threats that could potentially disrupt a supply chain is growing exponentially. The adoption of AI by cybercriminals, an increasingly unstable world stage and natural disasters are only part of a litany of factors elevating the danger to a new level.
In this new world, we need a new approach to securing the supply chain. In this article, I’ll discuss how a “trust-based approach” can ensure a resilient supply chain that is adaptable to today’s—and tomorrow’s—challenges.
This approach addresses supply chain security by starting from the ground and building out, ensuring compatibility with industry standards and existing protective measures. This trust-based approach is then reinforced through protocols for secure data transfer that allow system flexibility by operating at the application layer. Additionally, this approach relies on principles of “zero trust”—continuously authenticating and authorizing actions with no user or application ever being assumed to be safe.
Let’s begin by exploring the components and vulnerabilities of the modern supply chain’s computing infrastructure.
Building Blocks Of A Modern Supply Chain
Supply chain managers’ unenviable task only begins with thinking about the multiple vendors and partners they rely on. The immense complexity of the computing software and hardware infrastructure that forms the backbone of a supply chain presents a myriad of challenges that range from human error to well-planned attacks.
While a deep dive into this topic is beyond the scope of this article, a few fundamental software and hardware elements commonly form the technical backbone of a supply chain.
For example, organizations rely on numerous servers to store and manage data and applications. They also manage swaths of networking equipment—such as routers, switches and firewalls—and a wide range of mobile devices. Furthermore, barcode scanners and RFID readers are used to track assets, and many organizations have deployed vast networks of Internet of Things (IoT) sensors associated with production.
Supply chain managers must also maintain various supply chain management (SCM) software suites for managing the flow of goods and finances. These systems are typically integrated with various enterprise resource planning (ERP), material requirements planning (MRP) and customer relationship management (CRM) systems. Transportation management systems (TMS) tasked with optimizing shipping and delivery operations must also be considered, as well as warehouse management systems (WMS) for inventory.
The upside is that these tools streamline operations, improve efficiency and provide real-time supply chain visibility, enabling nimble, smart decisions. The downside is that if even one component fails, the entire supply chain may be disrupted.
Let’s discuss a few software/hardware issues that commonly upset supply chains.
Challenges In Maintaining Supply Chain Integrity
Several challenges involving computer hardware and software can impact the integrity of supply chains. For example, organizations often face compatibility issues between new hardware components and existing systems that cause broken links in a supply chain. Similarly, when optimal maintenance and upgrade schedules aren’t maintained, critical equipment can fail.
Software creates its own list of problems, particularly considering how easily vulnerabilities can be exploited by cybercriminals. Like hardware, new software often encounters compatibility issues with legacy systems, creating complex challenges that are compounded by ongoing battles with bugs and glitches. And don’t forget the threat of a regulator levying a fine or even halting a portion of the supply chain because a software component isn’t properly licensed or otherwise compliant.
In a nutshell, the growing complexity of global supply chains makes their management harder. When problems arise, the convoluted intricacy of these systems can make it difficult to promptly identify the root cause—a challenge multiplied in supply chains that rely heavily on third-party vendors.
The trend toward increasing supply chain complexity is unlikely to subside. Supply chain managers need a new approach that allows them to maintain security, efficiency and control over these sprawling, dynamic systems. I’ve already described the basics of this “trust-based” approach. Let’s dive into the details.
A Trust-Based Approach to Supply Chain
A trust-based approach can significantly enhance supply chain integrity by following a few prescribed elements.
First, trust is built into the system from the “ground up.” This is accomplished by ensuring that all hardware and software systems are compatible with existing industry standards and that they can be seamlessly integrated without compromising security. It also involves incorporating firewalls, intrusion detection/prevention systems (IDS/IPS) and various identity management systems. All this works together to create a system that can be iterated upon, component by component, along with changing needs and the availability of new technologies.
Second, trust must be enforced by application layer protocols to ensure that data is transferred correctly between systems and devices and that pre-existing security layers are safely integrated. This also plays a key role in maintaining the system’s flexibility, as it allows new components to be added without rewriting the rules of security.
Finally, the system requires an efficient framework for authorization of all communications and data transfer based on principles of zero trust, in which every action by a user or device is authenticated, authorized and continuously validated. This is a requirement, given the new capabilities of cyberhackers, which include leveraging AI to infiltrate systems and morph their identity as they move from component to component. Such a system should leverage AI to detect and prioritize activities most likely to represent security threats, identifying potential issues before they cause significant damage.
Conclusion
By adopting a trust-based approach, supply chain managers can address the key hardware and software issues that afflict the modern supply chain. Most importantly, this approach is highly adaptable and scalable, ensuring smooth and continuous operations in an ever-evolving business landscape.
Source: Forbes
