Introduction
In the modern age, implementing information system technologies in organizations
seems to handle functions globally. It facilitates the exchange of information between supply
chain partners and within businesses (Gölgeci, & Ponomarov (2015). The need for information
in the supply chain is met by this safe exchange, which can improve the performance of the
supply chain procedures and resolve the problems that can lower inventory and boost
availability expenses associated with management (Attaran, 2007; Kurdi et al., 2022).
Furthermore, there are other concerns that could affect the entire sector. (Hamadneh and others,
2021). These dangers could be from a new competitor or from new technologies upending the
entire market, in the same industry and with a comparable business model (Kumar et al., 2019;
Lee, Azmi, et al., 2022a; Shamout et al., 2022). Transporting goods throughout the world is a
time-consuming and challenging task.
Managers continue to be ignorant about the essential actions to enhance their logistics
security initiatives in view of emerging challenges in controlling the effectiveness of the
electronic supply chain (Joghee et al., 2021; Alshurideh et al., 2022). Without sacrificing the
efficiency of the supply chain, the security Manufacturers' and transportation companies'
interests need to be taken into consideration. In the e-supply chain, information security is
required for every step of the procedure (Lee, Romzi, et al., 2022b; Rafati, 2022). The
distribution and logistics sector has to Take into account the standards to improve the way that
technology is adopted (Falasca et al., 2008; Sindhuja, 2014). In the technological age for home
delivery, businesses are becoming more conscious of the need for safe delivery.
global supply chains. Efficiency is not only an operational goal but also a critical
determinant of economic health and competitiveness. metropolitan planning and expansion are
essential for supply chain efficiency, traffic reduction, and transportation route optimization in
metropolitan areas. Global supply chains are complex networks with a wide range of
participants, including governments, businesses, charitable organizations, and private
individuals. These stakeholders are involved in everything from local communities to major
international trade routes. Because of the increasing risks associated with transportation in this
intricate network, supply chain management must prioritize security. Urban resilience must be
continuously enhanced by strategic planning and state-of-the-art security systems to guarantee
the well-being of urban residents during interruptions. protecting the supply chain ecology
necessitates protecting sensitive data, guaranteeing the secure transportation of goods, and
upholding confidentiality.
This study offers a supply chain risk model that accounts for the origin of attacks as
well as the e-supply chain connections and activities that are vulnerable to IT risks logistics
and distribution sector. The global supply chain may be disrupted by major risks and issues in
international company operations, despite the fact that suppliers from many nations and tiers
are properly coordinated to lower the overall cost of the supply chain. Thus, the key elements
that can aid in observing the risk and the organization's efforts to mitigate these risks to
competitiveness will be included in this study.
• Threat
1. Cybersecurity Threats
Intentional attempts to use digital technology to gain access to, harm, steal, interfere
with, or destroy computer systems, networks, devices, or data. These attacks are
typically carried out by people, organizations, or groups for a variety of reasons,
including activism, espionage, sabotage, or financial gain.
2. Data Breaches
Is an instance where an unauthorized party accesses, divulges, or steals private,
sensitive, or protected information. This may happen as a result of intentional attacks,
inadvertent data exposure, or flaws in an organization's security protocols.
3. Third-Party Risk
Refers to the possible risks or weaknesses that appear when a company depends on
outside partners, suppliers, or service providers to carry out certain tasks. These risks
are brought on by the deeds, mistakes, or security lapses of outside parties and may
have an effect on the business's operations, standing, data security, or financial
stability.
4. Fraud and Counterfeiting
Refer to unlawful practices that use deceit to obtain money or to deceive people,
frequently by creating false information, goods, or services.
5. Technology Failures
Refer to circumstances in which hardware, software, or technology systems fail to
perform as intended, resulting in data loss, business process harm, or operational
disruptions. Numerous things, including bugs, design flaws, security breaches, or
technical malfunctions, might cause these failures.
6. Lack of Transparency and Visibility
Refers to a scarcity of information on decisions, activities, or processes inside a
system, project, or organization that is easily comprehensible, clear, and accessible. It
implies that stakeholders (including staff members, clients, or investors) could not be
fully aware of the inner workings, tactics, or results of operations, which could cause
ambiguity, mistrust, and even inefficiency.
7. External Disruptions
Refer to uncontrollable circumstances or occurrences that have the potential to
seriously affect an organization's performance, operations, or stability. External
factors such as natural disasters, economic upheavals, geopolitical shifts, technical
breakthroughs, or societal changes are often the cause of these disruptions, which
might present unforeseen difficulties and require swift organizational adaptation.
8. Regulatory and Compliance Challenges
Allude to the challenges businesses encounter in following the rules, laws, and
industry standards that control their activities. These difficulties occur when
companies have to negotiate intricate legal and regulatory frameworks that are
frequently changing and differ between markets, industries, and geographical areas.
Legal repercussions, monetary losses, harm to one's reputation, or interruptions in
business operations may arise from noncompliance.
• Vulnerabilities
1. Internet of Things (IoT) Vulnerabilities
Refer to vulnerabilities or defects in IoT ecosystems, networks, or devices that an
attacker could use to jeopardize the system's availability, confidentiality, or integrity.
IoT systems, which link different devices to share data online, are vulnerable due to
design faults, insufficient security measures, or operational shortcomings.
2. Outdated Technology
Refers to devices, software, systems, or procedures that, as a result of technological
breakthroughs or modifications to industry standards, are no longer regarded as
effective, safe, or efficient. These technologies are less dependable and may be more
susceptible to security risks since they frequently lack contemporary functionality,
compatibility, and support.
3. Data Security Weaknesses
Allude to weaknesses or vulnerabilities in the procedures, frameworks, tools, or
regulations intended to shield data from unwanted access, disclosure, alteration, or
destruction. These flaws have the potential to jeopardize the availability,
confidentiality, and integrity of sensitive data, which could result in data breaches,
monetary losses, harm to one's reputation, or noncompliance with regulations.
4. Geopolitical and Regulatory Risks
Allude to possible risks to corporate operations, supply networks, or investments
brought on by international relations, political unrest, or modifications to laws, rules,
and governmental policies. These risks have the potential to alter market dynamics,
have an effect on company plans, and provide regulatory issues for companies that
operate across borders.
5. System Downtime and Disruptions
Refer to times when operations are disrupted due to the unavailability or malfunction
of vital systems, services, or applications. These incidents, which frequently cause
operational delays, monetary loss, and harm to one's reputation, can be caused by
hardware malfunctions, software bugs, cyberattacks, natural disasters, or maintenance
procedures.
6. Physical Security Risks
Allude to possible dangers that could endanger the infrastructure, people, or material
assets of an organization. These risks include unauthorized entry, theft, damage, or
destruction of physical resources, including buildings, machinery, and sensitive
materials. These events are frequently brought on by human activity, environmental
conditions, or technical malfunctions.
7. Overreliance on Automation and Technology
Refers to the over-reliance on technical tools, software, or automated systems to carry
out operations or duties that ordinarily call for human oversight, judgment, or
involvement. Although technology and automation have many advantages, such as
improved precision and efficiency, an excessive dependence on them can be
dangerous, particularly if systems malfunction or are not properly monitored.
8. Lack of Incident Response Planning
refers to the lack or insufficiency of a systematic plan and processes for locating,
handling, and reducing security events, interruptions, or crises inside a company.
Organizations may find it difficult to identify, address, and recover from security
breaches, cyberattacks, natural disasters, or other significant events without a well-
defined incident response (IR) plan. This could make the impact of such catastrophes
worse.
9. Insufficient Training and Awareness
Is used to describe how employees or stakeholders lack proper training, skill
development, and knowledge of important systems, procedures, security measures, or
organizational dangers. Especially in areas like cybersecurity, compliance, operational
processes, and safety standards, this knowledge gap can result in mistakes,
inefficiencies, and vulnerabilities.
• Solutions
1. Enterprise Resource Planning (ERP) Systems
Are integrated software platforms that businesses utilize to automate and manage
essential business operations. By offering a consolidated system for data and
procedures across several departments, including finance, human resources, supply
chain management, inventory, sales, and customer relationship management (CRM),
these systems aid in streamlining operations.
ERP systems are made to make it easier for information to move across departments,
enhance decision-making, boost operational effectiveness, and give corporate
managers access to real-time data.
Are crucial resources for companies of all sizes, aiding in the integration and
optimization of procedures across many departments. Organizations can save money,
increase compliance, improve efficiency, and make better decisions by utilizing a
single system.
2. Blockchain Technology
Is a distributed, decentralized ledger system that safely logs transactions across several
computers without the need for a central authority or middleman, guaranteeing the
data's integrity and transparency. Although it is most well-known for being the
technology that powers cryptocurrencies like Bitcoin, its uses go much beyond virtual
money.
Data in a blockchain is kept in "blocks," which are connected chronologically to create
a "chain." To guarantee the immutability and security of the entire ledger, each block
comprises a collection of transactions or data entries along with a cryptographic
reference to the block before it.
Provides a decentralized, transparent, and safe method for recording and confirming
transactions in a variety of applications. Its advantages are especially noticeable in
fields like supply chain management, smart contracts, and cryptocurrencies that need
efficiency, security, and data integrity. But before the technology can realize its full
potential, it must overcome obstacles relating to scalability, energy consumption, and
regulatory concerns.
3. Cloud-Based Solutions
Relate to infrastructure, software, and services that are not hosted on local servers or
personal computers but are instead made available and accessed online (the "cloud").
With the benefit of scalable, on-demand resources, these solutions enable users to
store data, access and use programs, and carry out a variety of business tasks remotely.
Businesses and individuals employ cloud services offered by third-party suppliers,
frequently on a subscription or pay-as-you-go basis, in place of managing actual gear
and software internally. The cloud service provider usually maintains and updates the
cloud infrastructure, guaranteeing scalability, security, and dependability.
Provide cost-effectiveness, scalability, and flexibility, making them a crucial piece of
technology for contemporary companies. They lessen the need for on-site
infrastructure maintenance while allowing users to access services, communicate in
real-time, and efficiently manage resources. Notwithstanding certain drawbacks, like
security issues and a need for internet access, cloud solutions are now essential to
businesses all over the world as they undergo digital transformation.
4. Supply Chain Management (SCM) Software
Is a kind of business application made to streamline, automate, and facilitate the
movement of products, services, and data from suppliers of raw materials to final
customers throughout the whole supply chain. In order to increase productivity, lower
expenses, and boost customer satisfaction, supply chain management (SCM) software
assists businesses in coordinating and integrating a range of supply chain operations,
including production, logistics, inventory control, procurement, and customer support.
Plays a vital part in contemporary company operations, allowing companies to
effectively manage intricate supply chains. SCM software assists companies in
increasing operational performance, cutting expenses, and adjusting to the constantly
shifting needs of the market by utilizing automation, real-time data, and analytics.
5. Robotics Process Automation (RPA)
Is a technique that automates repetitive, rule-based tasks that are typically completed
by humans using software robots, or "bots." Without requiring major modifications to
current systems or infrastructure, these bots replicate human interactions with digital
systems, including logging into apps, entering data, carrying out computations, and
producing reports.
By relieving human workers of repetitive duties, RPA improves operational efficiency
and frees them up to concentrate on more intricate and strategic jobs. It is frequently
used to increase productivity, accuracy, and cost-effectiveness in sectors like supply
chain management, healthcare, finance, and customer service.
Is developing with the use of cutting-edge technology like as machine learning (ML)
and artificial intelligence (AI), resulting in Intelligent Automation. The ability of bots
to handle unstructured data, make decisions, and adjust to changing settings is
improved by this next-generation RPA. RPA will remain essential in boosting
productivity, cutting expenses, and fostering creativity as companies embrace digital
transformation.
6. Advanced Analytics and Business Intelligence (BI) Tools
Are tools and software programs made to assist businesses in gathering, processing,
analyzing, and visualizing data in order to facilitate decision-making and enhance
operational efficiency. By utilizing advanced data analytics methods and intuitive
reporting features, these solutions help companies find hidden insights, forecast
trends, and streamline processes.
7. Supply Chain Visibility Platforms
Are software programs and digital tools made to offer end-to-end, real-time
transparency at every supply chain level. These platforms provide information about
the flow of commodities, inventory levels, production status, and possible disruptions
by aggregating, tracking, and analyzing data from various sources. Their main
objective is to make it possible for companies to keep an eye on and improve supply
chain operations while maintaining flexibility in the face of difficulties.
Enable companies to attain operational excellence through proactive risk
management, collaboration, and real-time analytics. In the intricate and dynamic
supply chain ecosystems of today, their function is vital.
8. Collaborative Platforms and Networks
Allude to digital frameworks and systems that facilitate easy resource sharing,
collaboration, and communication between people, groups, companies, or business
partners. These systems, which frequently use cloud-based technology to link
geographically separated players, enable real-time engagement, information sharing,
and task collaboration.
Centralize communication and resource sharing to enable groups and organizations to
operate more intelligently and effectively. They are crucial for contemporary
companies navigating a world that is becoming more digital and linked.
9. Smart Contracts
Are contracts that run automatically, with the terms and conditions encoded directly
into the code. They remove the need for middlemen by automatically enforcing and
carrying out activities when specified circumstances are met. Usually running on
blockchain technology, smart contracts guarantee the agreements' immutability,
security, and transparency.
Transform conventional contracts through cost reduction, process automation, and
increased efficiency. Applications and usage of blockchain technology are anticipated
to increase across industries as it develops.
10. Automated Warehousing Systems
Are technologically advanced solutions that optimize and manage the transportation,
retrieval, and storage of items in a warehouse through automation. These systems save
human labor, boost productivity, and improve accuracy in warehouse operations by
utilizing robotics, sensors, software, and sophisticated machinery.
Transform logistics and storage processes by improving safety, accuracy, and
efficiency. Even if there are obstacles like cost and complexity, new developments in
technology keep extending their potential and range of uses.
11. Digital Twin Technology
Refers to the process of creating a digital model or representation of a real-world
system, environment, process, or object. Monitoring, analysis, simulation, and
optimization are made possible by the constant updating of this digital replica with
real-time data from its physical counterpart. Digital twins are frequently utilized to
enhance performance and decision-making in sectors like industry, healthcare, energy,
and urban planning.
Connects the digital and real worlds and provides strong tools for creativity,
productivity, and problem-solving. Because of its potential and adaptability, it is
essential to the growth of contemporary industry and infrastructure.
• Conclusion
The E-supply chain integration of digital systems and technology to optimize and control
the movement of information, goods, and services along the supply chain is known as the
"e-supply chain." There has never been a greater demand for effective, transparent, and
secure supply chain procedures as companies depend more and more on digital platforms
for operations. An important development in the management and delivery of products and
services is the e-supply chain. Businesses may improve security, collaboration, and
operational efficiency by implementing digital technologies including automation, IoT,
blockchain, AI, and cloud platforms. These advantages must be weighed against the
hazards, which include third-party vulnerabilities, cybersecurity concerns, and compliance
issues. To sum up, companies who adopt and maximize e-supply chain solutions will have
a competitive advantage and more flexible operations as they better manage the intricacies
of a globalized, digitally connected market.
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