Companies exposed to supply chain threat

Singapore - The supply chain is left largely unprotected even in the face of terrorism, with only 0.2% of the average company's revenue spent on security, says a Lloyd's Register Quality Assurances executive.

Speaking at a recent Singapore Logistics Association training centre launch, industry expert Danny Tan, business manager of Lloyd's Register Quality Assurances says the supply chain industry could do more to improve security measures with the global issue of terrorism here to stay.

So far, attack on the global supply chain network has amounted to US$160 billion. Yet in the recent Beijing Olympics, only 2-3% of the US$60 million spent was allocated to security, Tan says.

"Companies should be more aware of the consequences of a major security incident. The harm cause to businesses could be insurmountable in the form of tangible assets such as property, products, infrastructure and personnel. This could ultimately harm the company's reputation and market standings," he says.

To reduce risk, companies could conform to the ISO 28000:2007 which was developed and approved as an international standard guideline to enhance the global security management system.

With the ISO 28000:2007, companies would experience greater quality assurance in the transferring of goods between modes of transports and locations. At the same time, risks to personnel and cargo will be reduced by addressing security issues such as terrorism, fraud, sabotage and piracy.