Supply Chain Security is a part of supply chain management that focuses on the risk management of external suppliers, vendors, logistics and transportation. The purpose is to identify, analyze and mitigate the risks inherent in working with other organizations as a part of a supply chain. It includes both physical security relating to products and cyber security for software and services.
There is no single set of established supply chain security guidelines or best practices, as the supply chains can differ greatly from group to group and involve many different organizations. A complete supply chain security strategy requires following risk management principles and cyber defense in depth. It considers account protocols set by government agencies like the Department of Homeland Security or customs regulations for international supply chains.
How does Supply Chain Security work?
Risk management is an essential part of supply chain security as it helps to identify, analyze and mitigate the potential effect of incidents. Technology and physical security controls are also foundational components of supply chain security.
Supply chain security solutions are optimized to address a range of vulnerabilities and threats that target supply chains. Cyber security within a supply chain is a subset of supply chain security. This includes the IT systems, software, and networks that are used and the associated management controls.
Importance of Supply Chain Security
Supply Chain Security holds an important position in organizations, as breach within the system could damage or disrupt the operations. Vulnerabilities within a supply chain could lead to unnecessary costs, inefficient delivery schedules and a loss of intellectual property. In addition to this, delivering products that are tampered with or are unauthorized could prove to be harmful to customers and lead to unwanted lawsuits.
Security management systems can help protect supply chains from physical and cyber threats. However, threats cannot be completely mitigated, supply chain security can provide more secure, efficient movement of goods that can recover from disruptions rapidly.
What is Global Supply Chain Security?
Global Supply Chain Security is a conclusion of supply chain security that takes into consideration the unique and complex challenges of international trade. Trade outside the borders of the United States is vulnerable to increased risks associated with natural hazards, geo-political threats, accidents, and malicious digital and physical incidents that can threaten security and disrupt operations.
How are Supply Chain secured?
Along with IT security solutions and processes, the following should be used with a focus on supply chain security.
- Attack surface monitoring
Attack surface monitoring helps to identify third-party security risks, such as supply chain security vulnerabilities around cloud solutions throughout third- and fourth-party networks.
- Data encryption
Organizations shall use strong encryption to protect data at all times-at rest irrespective of where it resides and in transit, and no matter how it is transferred.
- Identity and access management
Strong access controls should follow the principle of least privilege. Supply chain security protocols should define that no user has access beyond what is minimally required to perform their duties.
- Network segmentation
Networks should be logically divided on the basis of purpose and trust level to isolate sensitive information and prevent lateral movement across networks.
- Penetration testing
Supply chain security systems and processes should periodically undergo penetration testing, both automated and human- administered. This includes applications, IT infrastructure, and people (such as with simulated phishing attacks) along with threat response tactics.
- Software composition analysis (SCA)
SCA tools are used to obtain visibility into applications’ code and observe for supply chain security vulnerabilities or potential backdoors.
- Security audits
Ongoing audits are performed to assess supply chain security and identify vulnerabilities. These can be a combination of self-guided audits and on-site audits.
- Vulnerability scanning
Vulnerability scanners are used to reveal known and unknown vulnerabilities. Performing vulnerability scans on a regular basis helps to accelerate threat detection and response and reduce supply chain security risks.
Supply Chain Security Risks
Organizations of all sizes are vulnerable to supply chain security breaches. Following are some of the supply chain security risks that can lead to these security breaches:
- Dormant backdoors
Cybercriminals often deploy backdoors during a malware attack to evade detection by supply chain security systems and leave them for future use. Security teams are distracted by the attack and do not notice the backdoor that is exploited at a future date.
- Lack of visibility over third parties
Organizations lag to observe how third parties manage their IT resources, without any proper control. This results in significant risks, because even the best supply chain security solutions cannot protect what they cannot see.
- Flaws in application code
Applications pose a risk to supply chain security. The applications are mainly created using many third-party components, where developers rarely have complete visibility into all of the code. Thus, the attackers successfully exploit vulnerabilities that are buried deep in an application to compromise security and gain unauthorized access to systems and networks.
- Over provisioning of third-party access rights
A common weakness in supply chain security is caused by permitting excessive access rights to third parties. Generally, organizations grant access to systems to the third parties. Most often, they over extend their privileges and fail to retract access privileges when they are no longer required.
- Partners with breached supply chain security
Supply chain security is as strong as its weakest link. This requires just one partner to have a breach to put all others at risk. Once compromised, even a very small partner can provide a point of entry for cyber criminals to obtain entry into other partners’ systems.
- Poor data protection practices
When organizations fail to securely use, store and protect data systems and processes, there might be a probability of exposure of sensitive and confidential data. If supply chain security is not extended to all sensitive data, it is at a verge of being compromised.
Supply Chain Security Best Practices
Following are the supply chain security best practices to be considered:
- Create a test lab
Make use of a test lab to uncover hidden hardware and software vulnerabilities.
- Develop and maintain a threat response plan
Create a threat response plan to take swift action and take action effectively in the event of a supply chain security incident. Try to work with a cross-organization team to develop the threat response plan considering all areas of supply chains, including all third and fourth parties. The plan should be a detailed one, consisting of specific actions to be taken, the manner in which they should be taken, and what teams and individuals are responsible for each function.
- Engage in threat hunting
Search proactively for unknown vulnerabilities and identify supply chain attacks that have resulted in unauthorized access to systems.
- Prioritize third-party risk management
Prepare third-party management a priority with resources, which focuses on supply chain security risks. This involves continuous monitoring and analysis of the risks that can arise from relationships with third-party providers, including vendors, suppliers, contractors and other business partners.
- Use blockchain
Blockchain systems manage rust, transparency, and provenance into supply chains. Using blockchain supports supply chain security and lowers fraud by ensuring authenticity.
Final Thoughts
Supply Chain Security works as a complement to overall security and shall be included in the list of high priorities for an organization. The ripple effects of failures in supply chain security cannot be overstated from operational disruptions and revenue losses to reputational damage and adulterated products.
The inherent delicacy of security across sprawling supply chains needs attention and purpose-built solutions that considers the nuances of complex security requirements. Resources that are dedicated to supply chain security deliver an exponential return on investment, along with avoiding compromises and overall security is enhanced.
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