The Impact of 9/11 on Global Logistics

The Impact of 9/11 on Global Logistics
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Is a security-oriented culture applied to the supply chain just good business? Explain.
A security oriented culture as applied in the supply chain is simply good business, in light of security challenges that may derail business operations. Security issues have the potential to disrupt flow of goods on a bigger scale more than ever before because of the threat of terror. According to Blanchard (2006), manufacturers need security management as a core component of business through integration into the supply chain. It is through factoring in the role of security in business operations, that manufacturers and business operators can ensure that there is increased efficiency in the supply chain as well as improved comparative advantage in comparison to businesses which ignore the disrupting effects of security lapse.
Through adopting a security framework for supply chain activities, businesses are able to benefit stakeholders including end customers, and security measures should not simply be adopted because of legislations (Closs et al., 2008). One of the ways through which to benefit from security measures is through management technology. This technology makes it easier to detect security vulnerabilities (Closs et al., 2008). Additionally, it is easier to share timely information about security concerns. The information shared to suppliers enhances planning, and improves business relationships. Overall, integrating security concerns in the supply chain helps to maintain brand equity and reputation, showing that managing security is good for business.
What are the benefits of viewing security issues beyond the individual firm?
The advent of globalization has resulted to increased business operations across borders, with reliance on technology interconnecting firms with diverse market players across the world. The main benefit for businesses is that better security facilitates trade for all market players, as businesses are less prone to disruption. Since businesses are better organized in tackling security threats, there are also better prepared to deal with disruptions. This also improves the security measures on different industries when different individual firms are aware of potential adverse effect of security threats. Hence, there are lower losses associated with security concerns and breaches while there is also better predictability.
Another benefit of viewing security matters is that there is better forecasting and risk pooling for many firms in an industry. Estimated figures on a larger scale are more relevant to show a trend in an industry and likely impact of security concerns. Many individual firms have limited capability to carry out thorough assessment of threat levels. It is easier to pool risks through collaboration, where firms share information to trading partners on security practices (Sheffi, 2002). When operating unde...