Organizations can take steps to strengthen supply networks
Reprints
Supply chain integrity can be disrupted by a variety of factors, but an organization can bolster itself against interruptions in its operations by taking steps to strengthen its supply networks, according to a senior insurance industry executive.
Myriad factors can affect the efficiency of supply chain activities, from geopolitical instability and catastrophes to cyber incidents, Andrea Blair, Nashville, Tennessee-based director of business resilience and continuity management services for Zurich Resilience Solutions, part of Zurich North America, said during a Tuesday session at Riskworld, the Risk & Insurance Management Society Inc.’s annual meeting in Atlanta.
Cyber-related impacts to supply chains and warehouse and logistics rose 67% in 2022, Ms. Blair said.
Many of these exposures can be mitigated by improving internal systems and tightening controls, Ms. Blair said. “Take a hard look at your internal processes. Some gaps are very easy to close,” she said, such as contract language.
“Make sure to include quality standards,” in contracts with logistics and supply chain partners, Ms. Blair said.
Technology can also help strengthen a supply chain, such as real-time tracking.
“Know where your inventory is,” Ms. Blair said, including tracking expiration dates if working with perishable materials.
Securing an organization’s data systems can help prevent some supply chain problems, Ms. Blair said. Logistics and supply partners, she said, typically have some access to client systems in order to facilitate communications.
There will likely be a cost to implementing such changes, Ms. Blair said, but they should help pay for themselves.
“This is a spend. Some of these things will cost some money,” but there is research that shows the improvements will yield a return on investment, she said.
