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Security and the Supply Chain

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Read the sources referenced on the Background page. Then, respond to the following questions:
1. Is a security-oriented culture, with respect to the supply chain, just good business? Explain.
2. What are the benefits of viewing security issues beyond the individual firm?
3. Why is RFID technology viewed by many to be an important tool in securing a supply chain?
4. Which of the 10 security competencies discussed in the Closs, Speier, Whipple, and Voss article are likely to be the most challenging to implement? Why?
Assignment Expectations:
Display an understanding of how terrorism, and other international developments, can threaten global logistics. Discuss measures that can be taken to reduce these threats.

References:
Blanchard, D. (2006 Dec.) Protecting the Global Supply Chain, Industry Week, Cleveland: Vol. 255, Iss. 12, pg. 43, 2 pgs. [ProQuest doc ID: 219748947]
Closs, D, Spier, C, Whipple, J, M. & Voss, D. (2008 Sep) A Framework for Protecting your Supply Chain, Logistics Management (2002) Highland Ranch: Vol.47, Iss. 9; pg. 45, 1 pgs. [ProQuest doc ID: 197209740]
Sheffi, Y (2001) Supply Chain Management Under the Threat of International Terrorism, International Journal of Logistics Management, Ponte Vedra Beach: Vol. 12, Iss. 2; pg. 1, 11 pgs. [ProQuest doc ID: 235866128]
Suder, G, & Czinkota, M. (2005 Fall) Towards An Understanding of Terrorism Risk in the MNE, Multinational Business Review, Detroit: Vol 13, Iss. 3, pg. 3. [ProQuest doc ID: 194181282]
Zalud, Bill, (2010 May) Every Link in the Chain, Security, Troy: Vol. 47, Iss.5; pg. 28, 3 pgs. [ProQuest doc ID: 197786976]

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1. Is a security-oriented culture, with respect to the supply chain, just good business? Explain.

Having a security-oriented culture, with respect to the supply chain, is a good business practice. If the supply chain breaks due to inattention to security issues, there could be dire consequences. A security-oriented culture, especially with regards to terrorism, are often based on the government's responses to terrorism, and not directly caused by the terrorist attack. The government's responses may include the closing of borders and halting of air transportation; in addition, buildings may also be evacuated. As a precautionary measure, these responses can continue long after the terrorist activity has occurred, and affect businesses and civilians. These responses to terrorism affect the crux of the country's economy. To operate effectively in such dire circumstances, businesses have to be prepared to operate after terrorism has occurred. In a security-oriented culture, businesses have to manage delays and inconsistencies in delivery lead times due to terrorism.

Customers who believe that an attack on the company was due to negligence and could have been avoided, may lose their respect for the company and refuse to do business with the company. This could result in a snowball of events, such as costing the company valuable market share, which could in turn cause investors to sell their shares of the company's ...

Solution Summary

The expert determines the benefits of viewing security issues beyond the individual firm.

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