Tag Archives: supply chain security

How Does Coronavirus Impact Global Supply Chains?

The highly contagious virus known as COVID-19, which originated in Wuhan, China, has now been declared a global pandemic by the World Health Organization. With hundreds of thousands of people infected globally, the coronavirus revealed itself as a huge threat not just for the health industry, but also to the global economy. Supply chains, in particular, are being affected by coronavirus.

Coronavirus impact on the global economy

One of the first to feel the damaging economical impact of the infection was the stock market. The UK index plunged more than 10 percent, making it the worst day since 1987. In France and Germany, the drop was even bigger, falling 12 percent. With Japan’s Nikkei 225 index settling at 4.4 percent lower, the U.S. shares experienced a significant drop on Wednesday, with the Dow Jones plunging by 5.8%. This is the greatest stock fall off since the 2009 financial crisis.

How does coronavirus affect global supply chains?

Such a substantial economic disruption couldn’t leave the supply chains and freight industry untouched. In fact, more than 75 percent of companies have declared their supply chains were disrupted by the unraveling of COVID-19. According to The Harvard Business Review, the peak of the infection hasn’t even started yet, at least in the U.S. It is uncertain what the final damage will look like. But supply chains need to take precautionary measures, and the sooner the better.

To stop the spread of the infection, governments are taking restricting measures to prevent further damage. Particularly, in the U.S., President Trump has suspended all travel from Europe to the U.S. for 30 days.

How to handle the coronavirus disruption:

Despite that the situation is uncertain, companies can take measures to hinder the damaging effect of the crisis:

  • Have an extended network of carriers and suppliers
  • Analyze and check the parties you are working with, define where exactly they ship from, is it safe, and what safety measures they are taking
  • Think of inventory in advance and buy more supplies if possible
  • Stay in touch with your customers and clients – make sure to provide them will all the necessary information about the changes in operations and other important factors.

With the majority of companies having suffered severe disruption due to this global phenomenon shows just how unprepared supply chains are to such events. Eventually, this proves that risk management, supply chain resilience, flexibility, and safety policy will be among top priorities and trends for businesses in the upcoming years. Most likely, the crisis in the economy will prolong and companies will need time to recover the operations, depending on the current damage they are facing.

Why Supply Chain Cyber Security Is Important?

Why is supply chain security important?

As digitalization takes over the world, there is a raging demand for transferring loads of data to cloud storage. The transportation industry is no exception, considering the exponential growth of the e-commerce sector. Logistics companies and businesses are constantly working to stay ahead of new industry trends and technology but may often overlook one important aspect that is becoming a crucial part of the logistics industry – supply chain security, and cybersecurity in particular. ­

Cybersecurity in the supply chain

The consequences of cyber attacks on a business can be devastating: taking data into hostage for a money refund, digital infections that can immediately destroy all information, breaking the supply chain and causing money loss. Many logistics companies should consider shifting their focus on data security to provide their customers with the safest transportation solution.

supply chain security

Although it is impossible to provide 100 percent protection against digital threats, there are many different ways companies can significantly raise the state of their cybersecurity. Not all of the cases of cyber attacks occur due to crime. A survey by the 2013 Trustwave Global Security Report says that 25% of digital infections turn out to be unintentional and can be caused by employees, suppliers, system errors, or other internal factors. Accordingly, the intensification of cybersecurity doesn’t mean investing in IT alone. Companies should take a step in developing high-quality risk management strategies and train their employees to identify potential threats and avoid these types of situations. Companies can take precautions to help ensure their data safety.

How to improve supply chain security?

Employee training

Working staff must be highly aware of what potential cyber interfering looks like. Opening suspicious attachments from unknown users, answering uncertain emails and phone calls, inserting untested USB memory sticks – every employee should keep an eye out and watch their own actions carefully.

Software and firewalls

Using only tested, up-to-date software with a strong security system that provides password safety, a complex chain of authentication and user control will help aid in a company’s data protection. Regular data back-ups to external servers is also a great strategy to help save data in the case of a cyber-attack.

Investing in a cybersecurity expert

According to Gartner Survey, only 65 percent of companies have a cybersecurity specialist. Bringing on a skilled technician to constantly test software and protection systems can keep the company ahead of possible cyber-attacks.

Risk management

Implementing long-term, well-operated strategies to reduce the possibility of malware invasion is crucial in a company’s cybersecurity plan.

In the end, no one is 100% safe from possible hacker attacks. If your company hasn’t developed a plan to help ensure cybersecurity, you should consider doing so to protect the company as a whole.

 

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