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Supply chain in transport & logistics

Transportation and logistics companies are facing an era of unprecedented change as digitization takes hold and customer expectations evolve. Our supply chain standards can help organizations adopt best practices to mitigate and manage supply chain risks and ensure future success.

Improving supply chain transparency, safety and efficiency

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How can transportation organizations protect and improve their supply chain?
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How can transportation organizations protect and improve their supply chain?

As organizations continue to grow their supply chains, they rely heavily on their transportation and logistics providers to protect and deliver their shipments. Transportation companies must ensure their shipments are properly monitored at all times to avoid the risk of cargo theft, hijacking, and smuggling incidents.  One of the major challenges transportation providers face is the use of subcontractors and agents and not knowing their compliance levels and overall risk.  This sector is also faced with the threat of natural disasters interfering with its operations, which could cause delays or damage to goods. In order to mitigate these risks, transportation providers must be able to identify and react quickly to global threats to maintain the integrity of their customer’s shipments. Risk management standards can be adopted by all stakeholders to mitigate the threat of risks such as cargo theft through the global supply chain.  Cargo theft in Europe case study: What’s the risk? The lack of secure parking for cargo trucks is a major driver of cargo theft trends in Europe. All major countries of concern for cargo theft in the region, such as the United Kingdom and Germany, lack a sufficient number of secure parking locations.  Regulations that limit the length that cargo truck drivers can operate before taking a mandatory break also exacerbate the lack of secure parking and often force drivers to stop in vulnerable locations. This issue can also be seen in both the modality and types of cargo theft that BSI recorded in Europe during the first half of 2018, with thieves targeting cargo trucks in an overwhelming 86 percent of incidents and using the slash and grab tactic in 48 percent of incidents.  The high number of unsecured vehicles available for targeting helps explain the low number of facility thefts that BSI records in Europe. It is much easier for thieves to target an unsecured cargo truck than it is to infiltrate and steal goods from often more-secured warehouses and other types of supply chain facility locations.  The prevalence of soft-sided trailers in Europe also promulgates this trend and primarily explains the high frequency of the slash and grab tactic, in which thieves cut into the tarpaulin covering trailers in order to quickly remove goods.  BSI frequently records slash and grab thefts throughout Europe. Although not as common of an occurrence in Europe as in other regions in the world, namely South America, companies operating in certain countries in Europe should be aware of the potential for hijackings to occur. BSI most commonly records cargo truck hijackings in Italy and France. To read about the importance of a road safety management system, click here. The importance of managing transport supply chain risk Due diligence is of utmost importance in all business undertakings. A primary objective is to protect your business from non-payment for services or to ensure that the customer you are acting on behalf of is legitimate and not partaking in fraudulent business activities. In this context, it can also assist in developing a sound understanding of the type and value of cargo your customer is shipping which will afford you the opportunity to fully assess the risk of theft.  A perhaps less obvious objective of performing due diligence is to protect your business from falling victim to the fraudulent activity of service providers and sub-contractors, which can give rise to cargo theft. It is vital to fully understand who you are subcontracting with and that they are a viable and reputable company. If a robust selection and management process is not in place, then there is an increased risk of exposure. It is recommended that freight operators develop and implement a robust approved contractor process which should be adhered to always, regardless of time pressures and temptations that are borne out of convenience to short cut around it. Freight operators should endeavour to source a sufficient number of approved sub-contractors to cope with peak volumes.  Due diligence should be performed prior to any appointment, no matter how time-sensitive the delivery may be. The exposure, both financially and commercially, for late delivery will almost certainly be outweighed in the event of cargo theft. Risk management standards that support the transport supply chain There are several key standards that transportation organizations can adopt to help mitigate supply chain risks: BS ISO 28000 is the international standard that specifies the requirements for a security management system, including those aspects critical to the security assurance of the supply chain. It was developed in response to industry demand for a security management standard. Its ultimate objective is to improve the security of supply chains.  It is a high-level management standard that enables an organization to establish an overall supply chain security management system. It requires the organization to assess the security environment in which it operates and to determine if adequate security measures are in place and if other regulatory requirements already exist, with which the organization complies. BS EN ISO 22301 details the requirements of a business continuity management system (BCMS). It enables organizations to prepare for disruptive incidents that might otherwise prevent them from achieving their objectives. Users will be better prepared for disruptions and will recover more quickly, minimizing the impact on employees, customers, and suppliers. BS ISO 44001 specifies requirements for the effective identification, development, and management of collaborative business relationships within or between organizations. It is applicable to private and public organizations of all sizes, from large multinational corporations and government organizations to non-profit organizations and micro/small businesses. Ensure your transportation organization is minimizing risks within its supply chain by adding these risk management standards to your collection today. Discover BSI Knowledge There is no doubt that using standards can ensure the efficiency and reliability of your transport and logistics services, building crucial trust between you and your supply chain and consumers. With a BSI Knowledge subscription, supply chain stability is at your fingertips with instant access to over 100,000 best practice documents. Request to learn more.Read more
Social responsibility and the global supply chain
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Social responsibility and the global supply chain

When organizational activity is consistent with social responsibility, the advantages are significant. They include greater public trust, improved reputation and international trade opportunities, optimized risk management, and an increased competitive edge. Yet despite the best intentions, many organizations struggle to manage large, complex networks of suppliers in a way that is resilient and efficient, and that drives continuous improvement to ensure social responsibilities are met. Standards can guide your company in developing and implementing policies and practices that benefit the entire value chain, improving its resilience and helping your business maintain a leadership position on environmental, social and governance (ESG) matters. The rise of ESG More than ever, businesses are being held accountable by shareholders, investors, employees and customers for aligning their brand values with supply chain capability. Failure to demonstrate accountability and transparency can cause long-lasting damage to brand perceptions, risking the loyalty and esteem of both customers and partners. The connection between social responsibility and supply chain management also has a direct effect on financial performance. Structured properly, a fair and up-to-date supply chain policy creates a win-win situation for both buyer and supplier. What’s more, governments have begun to regulate social practices to identify and mitigate risk – making visibility and transparency a top priority all the way down the chain. Understanding supply chain challenges While companies seek to improve ESG, recent events have served to expose vulnerabilities in global supply chains. The Covid-19 pandemic caused impacts with widespread knock-on effects, while the war in Ukraine has, for example, highlighted European reliance on Russian gas and oil, agricultural products, minerals and metals.  In fact, supply chains are at risk from numerous angles. KPMG research from November 2022 found that 71% of global companies regard raw material costs as their chief supply chain threat for 2023. More than 60% expect geopolitical instability to present a risk over the next three years, and almost half consider cyber security to be an important operational challenge for their supply chains. At the same time, 67% say that meeting customer expectations regarding speed of delivery is a critical force impacting the structure and flow of their supply chains, and some 53% plan to increase their sustainable sourcing. It would be no understatement to say that risk will define supply chains for years to come. The role of standards in supply chain integrity Taking a standards-based approach is the best way to establish a strong, responsible supply chain. Standards allow organizations to do business fairly and sustainably, and to validate supply chain integrity through continuous improvement. So, what are the key standards for organizations looking to integrate ESG principles throughout their supply chain? Security and resilience BS ISO 28000:2022 Security and resilience. Security management systems. Requirements protects an organization’s goods from point of manufacturing to point of sale. Using this standard, businesses can identify risks across the supply chain and apply appropriate controls to actively manage and minimize them. It addresses potential security issues at all stages of the process, including financing, manufacturing, information management and transportation. Managing collaborative relationships With a BS ISO 28000 compliant management system in place, businesses can demonstrate their commitment to the safety of individuals and security of goods and services, improving business confidence, reputation and future growth. In order to achieve this, organizations must work together and support one another. A further standard can help: BS ISO 44001:2017 Collaborative business relationship management systems. Requirements and framework. It specifies requirements to develop and manage contractual relationships, enabling organizations to build towards a supply chain in which all parties share responsibility and approach risk management appropriately. Managing risks Another useful standard is BS ISO 31000:2018 Risk management. Guidelines, which provides a common approach to managing risk at all levels. Its structure allows businesses to mitigate social responsibility risks across the supply chain, developing plans for evaluating environmental and social compliance, as well as ethical sourcing and development. Environmental management It is also wise to consider specific standards on environmental management and sustainability, such as BS EN ISO 14001 Environmental management systems and BS ISO 20400 Sustainable procurement. Guidance. BS EN ISO 14001 puts environmental management at the heart of an organization’s operations to help meet regulations and improve efficiency and performance across the supply chain. Similarly, BS ISO 20400 helps organizations introduce sustainable procurement processes, improving the performance of all supply chain partners and ultimately increasing overall reputation and value. Ethical supply chains BS 25700 can ensure businesses develop a better understanding of modern slavery risks in their operations and supply chains. The standard provides organizations with guidance on the risks, including prevention, identification, response, remediation, mitigation and reporting. Alongside more responsive and stable supply chains, the benefits to business can include improved investor confidence, reputation, and a greater ability to attract talent and retain staff. Information risk Finally, in today’s ever-changing digital landscape it’s never been more important to apply an ethical approach to managing information risk. The ISO/IEC 27000 series, including the recently-published BS EN ISO/IEC 27001 guides the creation and implementation of an information security management system (ISMS), helping organizations to maintain effective privacy and security protocols to protect both consumer and organizational data throughout the supply chain. Discover BSI Knowledge Over 100,000 internationally recognized standards are available for simple and flexible access with a BSI Knowledge subscription. Our tailored subscription service allows you to build your own custom collection of standards or opt for access to one of our pre-built modules, keeping you up to date with any changes. With support from a dedicated BSI account manager, our subscription service helps you achieve a more coherent and effective approach to best practice. Request to learn more.
Adapting to the future of logistic supply chains
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Adapting to the future of logistic supply chains

Without a doubt, the e-commerce industry is booming all over the world. With more and more people shopping daily from various e-commerce sites, online retail has become a massive yet complex business. To manage the growth in e-commerce and its moving parts, the logistics sector is having to keep up. What is e-commerce logistics? E-commerce logistics refers to the process of storing and shipping goods from an online store to the customer’s destination. Logistics in e-commerce platforms also entails the management of inventory during picking, packing, and shipping any orders made online. Thanks to today’s globally intelligent logistics networks, users can purchase goods anywhere online, and track in real-time where their package is located. Such systems make it easier for users to shop anywhere in the world and facilitate the flow of information across borders, which helps boost buyer confidence. Standards for visibility of logistics So, to maintain the supply of goods globally, the logistics sector must be evermore streamlined and efficient. Not an easy task given all the complexities. Having a bird’s eye view will help optimize the management and reduce the costs of these complex and increasingly global supply chains. From logistics service providers to freight transporters and their customers, everyone needs to know exactly where their shipments are, at any moment. That’s where standards can help. Our standards enable real-time, end-to-end visibility over the entire supply chain. Companies and users can know exactly where things are at any point in time, where they have been before, and why. For Alibaba’s Zhu, who was formerly the Chair of ISO/TC 154, the ISO technical committee dealing with standardized data exchange to foster trade facilitation, the benefits of using ISO standards in the field of logistics are clear: “ISO standards remove trade barriers, improve logistical processes, and create a common language for all market participants.” BS ISO 23354:2020 Business requirements for end-to-end visibility of logistics flow aims to improve data interchange efficiency. It is based on the semantic data model of the United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT), notably the Multimodal Transport Reference Data Model (MMT-RDM). Designed to reduce the cost of interconnection between logistics information service systems (LISS) and users who need such logistics information, the standard sets out three business requirements for the visibility of logistics traffic flow: LISS network architecture requirements Visibility data interchange requirements between LISSs Visibility data interface and process requirements for a LISS network To read more about how standards are shaping the future of transport, click here. Digital trust and the importance of data standards Logistics visibility needs to be efficient and cost-effective. That’s why logistics information service systems are constantly pushing for more valuable and standardized event status data for different data users. Standard development in this area is still ongoing. Standards that aim to establish data connections among LISS networks and satisfy different data providers’ and users’ requirements will be vital in the future logistics supply chain. There are other available standards that support the flow and security of data in the logistics supply chain. For example, BS EN ISO/IEC 27001 Information technology. Security techniques. Information security management systems. Requirements helps businesses implement a robust approach to managing information security (infosec) and building resilience. In a world where protecting commercially sensitive information is critical, this standard provides an excellent framework that helps logistic organizations manage and protect their information assets so that they remain safe and secure. It helps them to continually review and refine the way they do this, not only for today but also for the future. To ensure your logistics organization is prepared to keep up with future demand, buy these key standards today. Discover BSI Knowledge Overall, standards will go a long way in helping companies scale up their business to meet customer needs and deliver value. It’s time to unlock the full potential of your supply chains. With a BSI Knowledge subscription, supply chain innovation is at your fingertips with instant access to over 100,000 best practice documents. Request to learn more.

Key Supply Chain Standards for Transport & Logistics

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