E-commerce businesses can use a C-SCRM program to maintain the integrity, security, quality, and resilience of a supply chain and its products and services. It encompasses strategies to manage risks in supply chains based on continual risk assessment. These risks can include:
- Insertion of malicious software or hardware
- Unauthorized production
A C-SCRM program It involves identifying, evaluating, and mitigating risks across digital and physical supply chains. It accounts for risks at each stage of the supply chain.
The IIoT extends the IoT into industrial sectors and applications. It consists of “connected” physical objects, machines, sensors, and devices used to enhance industrial operations.
For example, e-commerce businesses can use cloud-based software to manage warehouse inventory. The devices improve warehouse recordkeeping and security and help minimize risk and prevent inventory losses.
In addition, e-commerce businesses can integrate IIoT sensors into conveyor belts, forklifts, and other machinery. They can utilize barcode scanners, label printers, and other IIoT devices. Doing so helps e-commerce companies get real-time performance and status updates. It also ensures these businesses can quickly identify and resolve supply chain issues.
Best Practices for Using C-SCRM and the IIoT to Prevent Inventory Losses
Today’s e-commerce businesses face a supply chain balancing act. These businesses must deliver products and services to customers on schedule and on budget. At the same time, the global marketplace is evolving, and e-commerce businesses must plan accordingly. Otherwise, they risk supply chain problems that hinder their productivity, sales, and revenues.
Prioritizing C-SCRM and the IIoT is key. E-commerce businesses can use both in lockstep with one another to streamline warehouse inventory management.
There are several tried-and-true best practices for e-commerce businesses to build a C-SCRM program and integrate IIoT devices into their warehouse operations. These include:
1. Look Beyond Digital Risk
Focus on cybersecurity and physical security. Conduct a cyber risk assessment to analyze a supply chain’s cybersecurity posture. This helps identify cybersecurity gaps and determine the best ways to close them.
Also, secure all IIoT devices. Provide authorized users with access to these devices. Verify that IIoT user device privileges are evaluated and updated regularly.
2. Plan for the Worst-Case Scenarios
Assume cyberattacks and data breaches will happen. Consider the potential impact of these issues. Then, a company can understand how security threats can hamper its supply chain.
Remain proactive when considering cyberattacks and data breaches. Remember, cybercriminals are frequently looking for ways to attack businesses. They will do whatever they can to exploit supply chain vulnerabilities. Therefore, a company must do everything in its power to keep pace with cybercriminals.
3. Understand Your Systems
Find out what supply chain systems must be secured. It can be beneficial to hire a supply chain management expert to audit these systems. This expert can provide a personalized recommendation on how to protect the systems.
A supply chain audit can provide insights into which IIoT devices can deliver the best possible results, and can highlight how to secure these devices.
4. Create a Company-Wide C-SCRM Program
Establish a C-SCRM program that encompasses all departments. The program can be implemented across these departments at once. Employees of all skill and experience levels can receive training on the program and how they can contribute to its success.
Along with a C-SCRM program, create a crisis management plan with predefined and approved decisions and content. The plan should detail how stakeholders can manage a supply chain crisis.
5. Monitor the Supply Chain
Keep an eye on supply chain performance. If any issues crop up, find out why they are happening. Meanwhile, if supply chain problems linger or escalate, revamp a C-SCRM program.
Be diligent in supply chain monitoring. A single issue can disrupt the supply chain and have far-flung effects on a company, its employees, and its customers. Yet, a business that monitors the supply chain closely is well-equipped to identify and mitigate a problem in its early stage. Plus, the company can take steps to prevent a supply chain issue from recurring.
The Bottom Line on Supply Chain Risk Management for E-commerce Businesses
Supply chain dangers are prevalent for e-commerce businesses. If left unaddressed, these issues can cause inventory losses and stifle business growth and development.
A C-SCRM program can transform inventory management. When developed and implemented properly, the program helps a company seamlessly identify and mitigate supply chain risks. The program ensures a business can get the most value out of its IIoT devices.
Craft and deploy a C-SCRM program that aligns with business goals. The program empowers a company to safeguard its supply chain and avoid inventory losses. It also ensures a business can keep its supply chain performing at peak levels.