A supply chain risk can vary broadly, from volatile global politics to natural disasters, from terrorism to DDoS attacks or data breaches. A disruption anywhere along the supply chain could have serious ramifications for business continuity potentially costing an organisation millions. Additionally, the size and scale of operations means that there are often numerous vulnerabilities.
Open Source Intelligence (OSINT) is an invaluable tool for both security teams and supply chain managers. It allows them to gain oversight over often vast and complex supply chains, monitor risks and threats, and gather real-time data that is essential for coordinating an effective response.
Many supply chain risks and threats are in association with fears around break downs within logistics operations or supplier disruptions. Additional concerns also relate to financial and legal exposures, uneven market demand for product, mounting competition, and natural disasters.
Protecting Business Continuity from Supply Chain Risks
Even as product complexity expands supply chains continue to stretch into developing countries where labour and natural resources are plenty, but the infrastructure is undeveloped or insufficient. Meanwhile, advanced planning and sourcing practices which aim to maximize efficiency and minimize costs, stretch operations to a point of fragility.
Any disruption can result in organizations and consumers worldwide feeling the impact via loss of suppliers, delayed or destroyed goods, product release delays, and ultimately, customer dissatisfaction and brand damage.
To mitigate the damage of potential threats, both physical and cyber, specific resources need to be designated with the goal of maintaining business continuity in the face of disruptions. One of the most essential resources for security teams and supply chain managers alike is relevant insights and intelligence to assist in assessing potential supply pitfalls.
Key Supply Chain Disruptions to Monitor with OSINT
Traffic
Even something as seemingly mundane as traffic can cause havoc with supply chain management as supply chains are heavily reliant on good transportation networks. Security professionals and supply chain managers need to know fast if key transportation networks are endangered.
For example, if a freight hub such as Hong Kong International Airport which sees nearly 3.7 million tons of freight through its gates each year were to encounter a serious disruption the ramifications would be far reaching. It’s not just physical disruptions though that teams need to monitor as cyber attacks can have equally far-reaching consequences.
Weather
It’s hard to predict where and when a tornado, hurricane, severe thunderstorm, or debilitating snowstorm will hit. However, in certain parts of the world such as Southeast Asia, these severe weather events occur more seasonally.
For example, in 2015, the top 4 typhoon events in Southeast Asia caused an aggregate of over $33.5B in damages, more than 138 days of recovery time, and impacted nearly 7,000 supplier sites. In response to the increased risk of extreme weather events organizations must confront the complexity of their operations and improve visibility to go beyond just their immediate vendors.
Only when an organisation has a complete picture that incorporates the variety of potential risks and has invested in specific responses and contingency plans can it adapt as needed to mitigate the impact of extreme weather events and maintain strength in the marketplace.
Mergers and acquisitions
A single organisation may work with hundreds of independent suppliers from all over the globe. It’s important to have clear oversight of their operational capabilities as well as retaining an awareness of how global events such as extreme weather or in this scenario a merger or acquisition might affect their output.
What organisations cannot do is assume the best case scenario. Like other threats mentioned in this article, this supply chain risk is exacerbated by the scope of the operation. A single delayed part, for example, could bring assembly lines to a halt causing a build-up of undelivered orders ultimately resulting in dissatisfied customers and a long-term loss of revenue.
With potentially hundreds of suppliers and thousands of parts it’s not practical to maintain frequent communications with every single supplier, nor is it possible to manually oversee the entirety of the supply chain.
Fire and the Unexpected Physical Disruptions
While some events can be predicted and planned against, others can’t. A fire in a warehouse for example. Or as we have seen recently COVID-19 which has caused havoc across supply lines with factories either temporarily shutting down or reducing the scale of their operations with limited workforces.
Such unexpected crises can have a big impact causing costly delays. Organisations need up to date and real-time information on all their respective suppliers if they are to react fast and mitigate the potential financial impact of these supply chain risks.
Cyber Threats
There are multiple threat vectors that cyber attackers could target. And as operations get more complex and they focus increasingly on utilising technology for increased efficiency, these vulnerabilities become progressively more concerning. Attacks could take the form of anything from customer data breach, to leaked information pertaining to sensitive company data or even as in the case of Maersk, a rogue malware completely taking down an organisations IT systems.
Related: Securing the Supply Chain: The Role of OSINT in Logistics
Conclusion
New demands and pressures are constantly stretching supply chains and forcing supply chain managers and security teams to adapt. The stakes are high and security is a critical factor. Major concerns such as an unstable global economy, aggressive market competition, extreme weather conditions, demand volatility, and production failures place revenue growth, reputation and overall business operations at great risk.
Understanding the nature of potential vulnerabilities and keeping current on disturbances that can impact processes can help teams better handle and mitigate problems related to global supplier concerns, brand protection, and financial risks.
Open Source Intelligence monitoring solutions like Signal enables teams to gain a clear oversight of the entirety of their logistical operations. This means they have details of potential disruptions or cyber-attacks before, or as, they are happening, allowing security teams and supply chain managers to implement their contingency plans in a timely fashion and prevent unnecessary financial losses.