Day: August 11, 2022

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What Is Supply Chain Security?

supply chain security

A supply chain can vary significantly from one another. A company that manufactures electronic devices has a different supply chain than one that manufactures sports goods. So, the definition of what is supply chain security can not be explained under one set of rules and recommendations. 

In general, supply chain security involves protecting a supply chain against any physical threats or risks. It also considers the regulations set by local and international governments for the integrity of supply chains.

We noticed that many companies showed little to no interest in cybersecurity in the past. Companies did all in their might to protect their supply chains from physical threats, such as sabotage, theft, and terrorism. Factories would be visited by independent auditors, regulators, and corporations who do background checks on employees. Cargo would be documented, secured, and examined before and after shipping to prevent fraud or theft.

Physical attacks are still avoided by tracing shipments and rechecking regulatory documents. Vendors are also told to obtain shipments specified by quality criteria, and a company may employ multiple vendors to ensure a nondisturbed supply of commodities.

What Are We Neglecting?

While we don’t discourage anyone from paying much heed to physical supply chain security, we do not encourage them to focus on physical security alone. The recent supply chain attacks in covid-19 are an excellent example of the need for excellent cyberdefense in today’s world. Just as the cyber pandemic began spreading in 2020, the global supply chain started feeling the strain, which will continue into 2022. Millions of people started to use internet shopping as their primary, if not sole, method of acquiring items, resulting in a surge in transportation demand.

The computer components supply chain is an excellent example of this. The computer chip deficit is one of the worst situations in the present supply chain problem due to work-at-home situations, internet games and entertainment, and public demand.

The market forces for specific components were never higher for both manufacturers and buyers. Computer lovers are now enrolling in year-long waiting lists for graphics chips, while automakers report losses in millions owing to chip scarcity. 

5 Ways How You Can Ensure Better Cybersecurity

Risk Assessment:

It’s critical to understand where your new suppliers stand on cybersecurity before entering into supplier partnerships. What kind of safeguards do you and they have in place? What procedures and policies are in place to maintain data security? You want to know that sensitive client information will be kept safe in any data you share with your suppliers. You should secure all your partners, but those who play a critical role in your supply chain will be at higher risk and require greater caution.

Train Your Staff:

The most common cause of cyber attacks is still human error. As a result, it’s one of the most critical issues to address. While you should constantly strive to create a cyber security-aware culture inside your organization, this practice should also be supported throughout the supply chain. A good method to do so is sharing resources with vendors to educate their personnel about cyber threats.

Take Necessary Security Steps:

A supplier policy can effectively encourage an open relationship with your suppliers and set clear expectations between you. You can devote parts to cybersecurity and data protection in such a document, laying out what level of security your vendors should be able to demonstrate. Asking your suppliers to align themselves with an existing set of cybersecurity standards and certifications is one of the simplest ways to do this.

Be Cautious:

Small firms must evaluate the security of their suppliers and maintain a high level of cybersecurity to persuade more significant partners that they are not a security concern. Many firms, particularly in the public sector, are now demanding their suppliers meet specific security criteria before gaining contracts with them.

Transfer Data Safely:

Data must be transferred through secure channels and kept secure at all times in the supply chain. Because hackers are most likely to intercept data as it moves from one location to another, maintaining adequate security during this process is critical. Encrypting data before it is transferred is an excellent approach to reduce this risk.

Companies should also ensure that they have a thorough picture of the various types of data in their supply chain and where it all resides. Internal data (together with backup systems) and data that your suppliers have access to are included.

Conclusion:

Managing cyber threats in the supply chain doesn’t have to be difficult, but it is critical to accept responsibility for your own risk and adhere to standardized cybersecurity standards. Understanding all partners’ security processes, rules, and solutions is in everyone’s best interest. These actions lower risk throughout the supply chain and show clients, partners, and stakeholders that their secrets are secure with you.

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What is breakbulk cargo?

blue white orange and brown container van

Breakbulk is a type of shipping process that is used frequently in the transport sector of the services industry. It is used for transporting goods that can’t be shipped into the average containers, breakbulk usually contains drums, barrels, bags, boxes, various kinds of instruments and devices, as well as crates and uneven containers. This means that the items in a breakbulk cargo are easy to handle and are loaded on the ship with ease.

Breakbulk covers a vast array of goods, items such as steel beams, paper reels, steel slabs, manufacturing machinery, construction material, vehicles, and all the heavy materials are considered breakbulk. For a long time, the traditional process of shipping that is; simply put, the cargo into containers and boxes that’ll make it easy to ship, has been quite successful. But regardless of its success, it still has numerous limitations, that provides breakbulk a breakthrough, especially in recent years in which, this process is being used more often.

A huge reason for its rise is the shift in the manufacturing, construction, and transportation industry. With industry revolutionization at its peak, it makes the shipment of heavy machinery and diverse equipment (that is difficult to put into containers or boxes), will be more than ever.

In terms of volume, almost half of the world’s cargo is shipped and received as breakbulk. And it is expected to maintain these numbers, as the experts don’t foresee any drastic changes in the industry, anytime soon.

ADVANTAGES OF BREAKBULK CARGO

Now that we’ve grasped the concept of breakbulk, let’s move toward its significance and benefits in the shipping industry;

CHEAP TRANSPORTATION:

One of the biggest advantages of breakbulk is that the cargo is moved on wheels rather than boats and ships. This saves a lot of resources and revenue; goods are shipped as a whole which is much easier as compared to small containers and boxes which requires a lot of time and meticulous planning. 

EQUIPMENT AND CARGO TOO HEAVY OR DIFFICULT TO MOVE:

The most significant feature is that we can easily load, unload and ship the items that are problematic and complex to break down. Shipping big products or goods that are uneasy to divide into smaller parts has always been an issue, so the only way to solve it is to find a way to the shipped item as it is.

Strong barges are used to roll on and roll off most of the shipments. Other than that, the vessel carrying breakbulk has the capability and the tools (such as high-strength cranes) to load and unload all the items that are either too heavy to lift for containerized shipping or goods that are unusual and can only be shipped in their original state without any altercations. 

 

SAVES TIME AND SIMPLE PROCEDURE 

Breakbulk is a cheap way of moving goods, other than saving shipping costs, it also saves the time of loading and unloading, as most of the items are rolled off and don’t need to be detached or broken down into parts. 

IT DOESN’T REQUIRE THE LATEST DEVELOPMENTS ON THE PORT 

It can be easily loaded and unloaded on ports that are underdeveloped because it doesn’t require the latest technology advancements. The tools required to unload products are already mounted on the ships.  

LESS HECTIC 

Breakbulk is simple, it doesn’t need the items to be separated, and shipped in different containers. All the hefty and difficult items are simply lifted by cranes and loaded and unloaded from ships, making the process less hectic.  

WHAT’S THE FUTURE FOR BREAKBULK?

Although Breakbulk has many advantages and benefits, it also has some downsides, rolling down containers and items can require a lot of manpower, but other than that; using old methods can sometimes risk the safety of items, as it doesn’t have the standard packaging. 

But despite ups and downs, the breakbulk method is here to stay, at least, for a while. It’ll remain in use unless all the ports around the world are equipped with the latest technology and machinery and it’s not happening any time soon. So, the combination of both containerization and breakbulk will remain in effect!

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What is a customer-centric supply chain?

birds eye view photo of freight containers

A customer centric supply chain is quite self-explanatory. As the name suggests, it focuses on the customer’s feedback, reviews, and suggestions. Customer-centric supply chains make constant changes to enhance the customer experience, the products and services provided by the company are altered and redesigned to fit the customer’s criteria as accurately as possible. This assists the company in reaching a higher satisfaction rate as they continue to innovate the products, and offer customers what they are looking for!  

 

The crucial point in running successful customer-centric operations is data analysis. Understanding your product or service’s market is vital, data analysis provides you a firm base for making a decision and shaping the product’s direction. Along with data analysis, general customer reviews and social opinions are also brought into the discussion, the idea is to exceed customer expectations by providing them with the product they want before they even ask for it.  

 

HOW IS A CUSTOMER-CENTRIC SUPPLY CHAIN DIFFERENT FROM A TRADITIONAL SUPPLY CHAIN? 

In a traditional supply chain, the customer is placed at the end of the cycle. It starts with the collection of raw materials, then its delivery to the supplier, followed by its transfer to the manufacturing department, and then finally distribution to the customer. Notice how this cycle involves customers only at the end? And they have no say in the entire process, they only get to see the final product. Then they make their decision of purchase based upon that.  

 

A report shows that:

  • More than 90% of customers actively track their orders online  
  • 81% of customers aren’t willing to pay a fee of $5 for same-day delivery 
  • 27% of customers have canceled their order because the same-day delivery was unavailable 

These are some of the recurring issues faced by the traditional supply chain. However, in a customer-centric supply chain, the customer’s input is put forward and taken into consideration at each step.  

 

Customer data and background, buying patterns, purchasing conditions, and required changes, all are a central part of this supply chain. Bringing change from a very early stage of raw material and manufacturing, as per the customer requirements only required and a limited amount of material is bought. Stocks for manufacturing are divided based upon customer demand in multiple locations rather than equal distribution and maintenance of inventory at all warehouses. This reduces the risk of losing unwanted material and expedites the manufacturing process. 

 

Once the product is ready, it is distributed through quick routes and multiple channels to ensure that customers acquire delivers in no time, and through the nearest pick-up points. In the case of shipping and delivery, customers are provided with the access to track their orders, which builds a sense of security that assists in building the trust of the customer.  

 

This strategy has done exceptionally well, the number of recurring customers has increased significantly, and the customer satisfaction rate has improved as well. Factors that matter the most in the customer-centric supply chain are; 

 

  • Customization  
  • Agility  
  • Building Trust for your brand  
  • Innovation  

Customization allows you to separate your brand from others, and form a unique identity. Brands such as apple have formed their fan base of users that are sold on the idea of customization.  Along with customization and tailored products, agility is very crucial.  Availability of your product in the market at a convenient time provides you with an edge over your competition. All things go in vain if you fail to build trust with your customers, Trust is the most important factor in customer-centric supply chains. Business often doesn’t make huge profits in the early stages and they rely on building a long-term relationship with their customers which prove to be more lucrative in the long run. And last but not the least, innovation! No one can sell the same product again and again and again! Innovation is necessary for brand building and customer retention. Companies that innovate their products at the right time are always successful in the market.

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Supply chain sustainability: Three essential ways to improve it.

birds eye view photo of freight containers

Supply chain sustainability is quite difficult to achieve, but if you have accurate knowledge, and an understanding of the topic, you can nail the adjustments that can enhance the efficiency of your operations by ten times! In this article, we are going to explain what a supply chain is; Go over the importance of the supply chain, and finally, learn what practical steps will help us in achieving supply chain sustainability. But before jumping on to the steps, we need to understand the basics.  

A supply chain is a complete system comprised of multiple factors such as corporations, networks, services, and all the procedures that are related to manufacturing, processing, and delivering products as well as services. 

WHAT IS SUPPLY CHAIN SUSTAINABILITY? 

When we talk about supply chain sustainability, we are referring to the measures taken by corporations to improve environmental procedures in the work environment, as well as the preservation of labor rights, and other issues concerning human and environmental health. Supply chain stability can be achieved through optimizing all the processes, from obtaining raw materials for manufacturing to streamlining production procedures, establishing automated warehouses, and then transporting goods in an organized manner.  

The main objective of supply chain stability is to minimize the use of harmful products and procedures, and maximize the efficiency of natural resources such as water, air, and utilize industrial waste. 

Now that we have an understanding of our topic, let’s dive deep and figure out why it’s important to achieve supply chain sustainability and what can we do to make a difference.

WHY IS SUPPLY CHAIN SUSTAINABILITY IMPORTANT?

The significance of supply chain sustainability goes beyond preserving the environment. Corporations and companies that operate on sustainable modules are more likely to survive and expand in the current era, because the investors and community, in general, prefer environment-friendly companies. This creates expansion opportunities, hence generating more employment opportunities and strengthening the economy. 

It also provides several cost-effective openings as well as recycling the materials helps in reducing the usage of external resources. Just a little switch in techniques and advancements in machinery makes a huge difference in the overall impact on the industries.        

WAYS TO IMPROVE SUPPLY CHAIN SUSTAINABILITY

SOCIAL AND COMMUNAL IMPACT: 

Having a better representation of your corporation means more potential to grow. When you consider the opinions and preferences of people, you include them and make them a part of your organization, it provides you legitimacy.

All the employees, workers, vendors, and customers feel like they’re a part of something bigger than them and they help in stabilizing the green culture. As time progresses, more and more people are getting aware of the environmental hazards and are willing to spend even additional money on products that are safer for the environment.    

MINIMIZING ENVIRONMENTAL EFFECTS: 

Everything seems simple on paper, but difficult to materialise in the practical field. Keeping a vigilant check on the resources of your manufacturers and all other agents, that are a part of your supply chain is necessary.  

You need to put together a team that can find the best ways to cut down the resources and maximize the number of items for the recycling process. Emplacing strict policies in the workplace can help you achieve your goals faster. It is also essential to keep your distributors and suppliers in check with their own goals. 

 

PERFORMANCE ANALYSIS AND REMODELING OF THE BUSINESS 

It is necessary to keep a track of your progress, to achieve your goals, you need to set targets on the individual levels, Key Performance Indicators (or KPIs) are used in organizations to evaluate the performance of employees. These KPIs keep a check on the rate of work done, analytical impact, revenue income, profit, loss, and multiple other factors. 

Once the numbers are in your hand, you can pinpoint the areas where you lack or areas where you can excel, and expand. Businesses grow when they get to know their strength and weaknesses, and KPIs are a valuable tool that will help you in your operations.      

Once you analyze the data and you’re ready to make big changes, it’s time for you to innovate the business model. You can now gradually shift operations to being environment-friendly, taking steps such as eliminating forced labor, stopping deforestation, recycling waste material, and minimizing the use of environmentally hazardous materials and chemicals are a few major steps that’ll remodel your business for good! But you’ve to be prepared and find suitable alternatives for each process.   

CONCLUSION

In conclusion, it is not easy for any company or corporation to go green especially if its operations are up and running. But achieving and maintaining supply chain stability is beneficial for the environment, as well as for the company. These three steps will definitely assist you in achieving the goals much faster and with fewer hurdles.

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Impact of ukraine war on supply chain and the global industry

Impact of Ukraine war on supply chain is proving to be quite destructive for both countries but more so for Ukraine than for Russia. But it’s not just Ukraine or Russia that is being affected, war of this magnitude has a long-lasting and widespread impact. This conflict will most likely disrupt the global supply chain. It already has started to show the effects to some degree. 

HOW DO SUPPLY CHAINS WORK? 

Corporations involved in global supply chain operations always maintain inventories that ensure to fulfill the customers’ requirements. Accurate and updated inventories indicate seamless supply chains. Maintaining an inventory is essential for controlling day-to-day operations and evaluating future customer needs. 

HOW DO WAR/CONFLICTS AFFECT THE GLOBAL SUPPLY CHAIN?

This is how generally supply chains work but during wars and conflicts, the risks and uncertainties involved affect inventory management in a major way. It is almost impossible to continue a supply chain in a conflicted area, other than the obvious threat of life, there are other dangers as well, such as deliveries getting ceased by the forces and there’s nothing you can do about it. And even if you make It out safe with the products, there’s still a high probability of your items getting damaged or lost. 

These are the reasons, companies and countries avoid trade-in conflicted areas, and rightfully so!  

STATEMENT OF THE SOUTH-KOREAN TRADE MINISTER 

Everyone is aware of the ongoing and upcoming chaos, and many have shown serious concerns. One of the major key players of the region South Korea is really vigilant regarding the situation. While talking to CNBC in an interview, South Korea’s Trade Minister, Yeo Han-Koo said “I think first, we are closely monitoring a spike in the energy prices,” he added that around 92% of South Korea’s energy needs are dependent upon its imports. 

Furthermore, he concluded that “Some of these supply chains in the manufacturing sector could be also exposed to these potential geopolitical risks”. So, South Korea is taking meticulous steps to ensure stability in the supply chain. 

South Korea is the hub of the Semi-conductor industry, and if Russia provides most of the raw material, then it’ll be difficult for them to continue production with the same pricing and the same pace. Finding an alternative can take quite some time, and even that doesn’t ensure the product quality. So the problem on hand remains, because, without South Korea’s production of Semi-conductors, the manufacturing of hardware around the world is in jeopardy.     

GLOBAL SUPPLY CHAIN, RISK MITIGATION AND IS THERE AN ENDING NOTE TO ALL THIS?

As the war progresses, the supply chain worldwide gets more and more vulnerable on a daily basis. Along with South Korea, other countries that either import or export from Ukraine are in enormous crisis, as the country is under siege and all the production operations are shut down. 

On the other hand, European Union and the United States have also announced heavy sanctions on Russia, which means that fuel prices will skyrocket in the international market, increasing production prices around the globe. Not only that, but Russia is also a huge exporter of Minerals, Stones, Steel, Fertilizers, chemicals, and many other industry-related as well as essential household items. Russia is the largest country on the planet, and It’s rich in resources, so putting sanctions and finding alternatives would be a difficult challenge for the European Countries.      

Both countries play a huge role in the global supply chain, and if they stay at war for too long, they could initiate a spark that brings the global resource crisis. 

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Cybersecurity risks of the RUSSIA-UKRAINE crisis

In today’s global age, the knowledge and awareness of technology, its advancements, variations,
pros, and cons, is a requirement. IT has changed the world’s landscape; it brought a lot of good
to the world, but at the same time, it has also attracted negativity in the form of cybercrime,
evolving the phenomenon of cybersecurity risks.
Protecting your online assets is not as easy as you think, it takes a lot of skill, time, knowledge,
and wit to encounter a cyberattack. Countries are now paying special attention to their social
media cells and ensuring that their confidential data doesn’t fall in the wrong hands, because if
you’re in a state of war, then a little mishap can prove to be catastrophic!

What exactly is cybercrime?
There are multiple kinds of attacks or scams that could fall into the category of cybercrime, but
there are still some disagreements regarding the actual definition of cybercrime. According to an
agency named CAPI, a cyberattack is an attack that affects the crucial infrastructure, valuable
information, secret documents, creates economic disruption, or any other technique used as a
part of hybrid warfare. Spying is also an area where cybercrime is considered valuable. Tasks
such as stealing surveillance footage and tape from central as well as national buildings are a
huge concern for cybersecurity officials.

What could happen?
So, the tensions are once again, quite high between Russia and Ukraine, and anything could
happen at any given time! But for some reason, we only seem to focus on the military assets and
manpower of each country, but ever since their encounter in 2014, social media, digital media,
and the internet, in general, have played a vital role on many occasions. Wars are won off of
communication, and if either country could get a hang of the network, or a loophole, they can
exploit it for their advantage. Instances such as “NotPetya-hacking” are proof of impactful
hacking, In his particular case, a Russian hacker caused a well-renowned software company
billions of dollars worth of damage, and got away with zero repercussions.
Ever since the tensions rose between Ukraine and Russia, the number of Russian scams has
seemed to be notably higher than usual. As the west starts to impose bans on Russian trade on
the verge of war, Ukraine as well as the USA, both are anticipating back-to-back cyberattacks
from Russia.

Who’s the target?
The main target of these attacks will most likely be huge corporations that affect the country’s
economy, official government websites, confidential sites as well as data centers of both, the
USA and Ukraine. Companies need to strengthen their cybersecurity and evaluate their

roadmaps. As the situation gets tenser, the companies that are connected to Ukraine in any way,
shape, or form are getting worried about being attacked by the Russian hackers or teams.
This instability creates an enormous setback in the economy of both countries, even companies
or people that are not directly involved but somehow related to Ukraine are at a brink of great
risk. In this modern-day, where all the military equipment is also working on automation and
networking, the threat of cyberattack can really shake some trees.

Conclusion
Russia-Ukraine face-off can cause a great deal of trouble around the globe, As Russia and
Ukraine have already lost over 11,000 soldiers, since their 2014 war. This war will create
instability across the globe, the new cybercrime wave will cause a lot of damage to the
companies, and it’ll leave a long-lasting impact on the international market. And such impact; that
it may never be recovered to the fullest and back to its original heights.