For many businesses, the supply chain is essential and operating a secure supply chain is critical to success. Without measures in place to secure your supply chain, your organisation is at risk.

The security of your supply chain is an integral part of supply chain management that looks at the risks associated with external suppliers, vendors, and others. Supply chain security aims to identify, analyse, and mitigate the risks that come as part of working with other organisations. 

Working in the manufacturing, engineering, and construction sectors, you will be aware of the continued supply chain difficulties being experienced in your industries. Major concerns such as an unstable global economy and post-pandemic recovery mean businesses face uncertainties. So, making your supply chain as secure as possible should be a high priority.

What can you do to create a secure supply chain? Here are some key points to consider: 

Choosing your suppliers 

It can pay to build a good relationship with your suppliers. Choosing a supplier based solely on cost could mean poor quality so it is important to check the quality of supplies is consistent. Your supplier needs to be reliable, a late delivery could cause delays and let your customers down.

Look at the benefits of having a diversified supply network. It is important to weigh up the cost of keeping your supply chain closer to home against longer lead times and shipping costs of international sourcing. 

When choosing and negotiating with suppliers do your due diligence before entering into a contract. Consider their value for money, service, reliability, and quality. If you can, go and visit suppliers on their premises to ensure they are the right fit for your business. 

Risk planning 

Supply chain risk management enables businesses of all sizes to take advantage of best practice strategies that mitigate risk and set them up for success. Having increased visibility over your supply chain helps identify risks or potential issues that may arise and can help you prepare and respond effectively. 

This could mean having an alternative supplier identified as a backup in case your regular supplier lets you down. This ensures you can guarantee order fulfilment and keep everything running. By adopting a mindset of continuous assessment and improvement, your organisation can mitigate future risks and recover quickly if a disruption occurs.   

Communication is key 

Communication plays an integral part in supply chain management. This is evident in the construction industry with contractors, subcontractors and suppliers involved at every step. Without a proper line of communication, clear expectations on tasks and traceability of materials and equipment, projects are likely to be delayed and over budget.

Being able to easily communicate with your supply chain makes it easier to regularly audit your suppliers and enables better quality management, with efficiency minimising waste and keeping costs down. 

Cyber security and the supply chain

Over the last few decades, technology has revolutionised the way we do business, including playing an important role in supply chain management. With pressure to reduce carbon emissions and expectations of efficiency improvement, organisations are leaning on technology more than ever before. New technologies, such as virtual meeting spaces and digital management systems, are being utilised for better management of a supply chain. 

However, cyber security threats and technology come hand in hand. According to a report from Accenture, 40 percent of cyberattacks are now thought to originate in the extended supply chain. Therefore, it’s essential that organisations implement adequate procedures and policies to mitigate cyber threats.

Whilst technology evolves, so must an organisation’s cyber security, which requires regular review of your cyber policies and procedures to ensure they remain effective.

With outside suppliers also heavily leaning on technology, organisations must ensure they have checks and systems in place to protect their business from technology used by an outside supplier.