Sample Case Study on The Impact of 9/11 on Global Logistics

The Impact of 9/11 on Global Logistics

Introduction

Following the 9/11 attacks, different organizations and companies have been faced with the fear of sudden disruptions in global supply chains. This is because of the reactions of the US government in the development of policies against terrorist attacks. The global supply chain was also compelled to introduce structural changes in response to terrorism. The main objective of this paper is to assess the impact of 9/11 attacks on global logistics. This will be through answering questions related to security-oriented culture to supply chain, and the role of RFID technology in boosting security measures in the global supply chain.

Security Oriented Culture and the Global Supply Chain

Security plays an important role in safeguarding, and this explains why the companies involved in the global supply chains are in the process of enhancing their security structures. Security oriented culture is considerd a course of good business because it minimizes the possibility that supply chain structures will be targets of terrorist activities (Craighead et al, 2007). In addition, companies within the supply chain that are perceived to be in possession of the most comprehensive security strategies are in the process of undertaking extensive  programs. This is related to the assumption that terrorist attacks against such infrastructure are often due to the sporadic nature of such attacks. Furthermore, enhanced security measures are also based on an understanding that it is relatively impossible to protect the entire supply chain on a global platform (Closs et al, 2008).

Despite this impossibility, the development of competent security measures are often perceived to be a demonstration of the ability of the supply chain to resume and restore operations after any security related disruptions. Security measures in the supply can therefore be perceived as profitable moves considering that through the resilient structures, companies have the ability to develop a spontaneous attitude wherever their survival is endangered (Craighead et al, 2007).

What are the benefits of viewing security issues beyond the individual firm?

Viewing security related issues beyond individual companies is essential to the supply chain. This is because it is one way through which companies and organizations within the chain can develop a homogenous and a structured way on how to manage terrorist threats. In addition, the development of a central viewpoint on matters of security also provides the management with a platform of developing policies, procedures, and technologies that are relatively effective (Closs et al, 2008). It also leads to the development of an understanding that the protection of the supply chain does not stop with the development of protection measures on gates and different doors, but extends to the protection of products and the customers (Closs et al, 2007).

With the development of globalization and liberalization of different markets, companies within the supply chain are interconnected in terms of the nature of their products and the transportation infrastructure they use (Craighead et al, 2007). This leads to the connotation that any form of disruption may go beyond an individual firm, hence the need to create a broader and a dense supply chain defense framework. This not only helps in the protection of the customers and the public but also protects brand equity (Craighead et al, 2007).

The Role of RFID Technology in Securing a Supply Chain

The development and implementation of Radio Frequency Identification (RFID) data security is based on the assumption that the security of the infrastructure and the population is critical and can only be addressed through effective technical and business procedures (Closs et al, 2008). The importance of this form of technology to the supply chain is influenced by the ability of the technology to include all spectrum of wireless in erratic capabilities, power, and intricacy (Craighead et al, 2007). Through RFID technology, companies in the supply chain are often able to secure data from cyber related attacks. In addition, this technology also help businesses in the development of standardized procedures on matters related to security, such as the use of information pointers instead of actual information as a data security measure.

Security Competencies

One of the most difficult security competencies to implement is a comprehensive security plan. This is due to the incomplete dominance of potential and actual security measures. In addition, it is also due to insufficient knowledge on the possible impacts of the available procedures on the performance of security (Closs et al, 2008). A comprehensive security plan would also require elaborate security infrastructure. This investment requires large financial resources, which not all companies in the supply chain may be able to afford considering the expenses required and the envisioned. The difference in the level of concern in the implementation of elaborate security measures may also derail the ability of all companies within the supply chain to ensure the development of a comprehensive security plan (Closs et al, 2008). Companies with strong brands, for instance, may be more concerned with such plans since failure to ensure efficient security measures may negatively affect the performance of their brands on the global market (Closs et al, 2008).

 

 

Conclusion

Security plays an important role in safeguarding and this explains why the companies involved in the global supply chains are in the process of enhancing their security structures. The development of an all-inclusive security strategy creates a continuous flow of information from the external and internal areas of the supply chain, hence preventing the possibility that any form of disruption will collapse the entire supply chain system. Through RFID technology, companies in the supply chain are often able to secure data from cyber related attacks.

 

References

Craighead, C. W., Blackhurst, J., Rungtusanatham, M. J., & Handfield, R. B. (2007). The severity of supply chain disruptions: design characteristics and mitigation capabilities. Decision Sciences38(1), 131-156.

Closs, D. J., Speier, C., Whipple, J. M., & Voss, M. D. (2008), “A Framework for Protecting Your Supply Chain”, Supply Chain Management Review, 12 (2), 38-45.