The Security Risks of Supply Chain Issues and Labor Shortages

OPS Security Group - Security Services - Supply Chain Issues

The Security Risks of Supply Chain Issues and Labor Shortages

Supply Chain Management (SCM) is the management of all activities involved in getting a product or service from its initial production to the point when it is delivered to the customer. It includes sourcing, production, warehousing management, inventory management, and customer service. Disruptions to your supply chain can and will cost your business. That’s why you need a security partner who can perform routine risk assessments of your supply chain to ensure your business security is effective.

OPS Security Group - Security Services - Supply Chain IssuesSupply chain management is a key component of any business. When it’s done right, it leads to cost savings, better customer service, and increased employee satisfaction. What are the risks? Here are some of the more common risks to consider when planning your supply chain management strategy.

Are You Prepared for the Challenges of Supply Chain Management?

The supply chain is a complex system. It’s not easy to keep track of where all the pieces go and how they do their jobs. The cost of doing nothing is enormous: a disruption in the supply chain could lead to a product shortage, an increase in costs, or a delay in delivery. The challenge starts with understanding the risk of disruptions and what it takes to manage that risk.

Labor Shortages

Labor shortages are an issue for many manufacturing companies that need more workers to meet the demands of their production and supply chain. This is a very important problem in the current global economy because it can have a significant impact on a business’s operational performance. Although some experts are optimistic about this issue, there are still many who believe that this situation is not sustainable.

The labor shortage in the United States is one of the most significant risks that companies face today. It’s not just workers that are at risk, but the entire supply chain network which includes shipping companies, warehouses, vendors, wholesalers and retailers. The labor shortage means that there is limited capacity for all these people to do their job properly or at all.

Skilled personnel can be easily replaced. Companies spend more money on training new hires only to have them seek greener pastures. Having good compensation plans and employee benefits can give relief to the growing labor shortage. 

A lack of workers can cause a drop in product quality and even a threat to their warehousing security. With unsafe working conditions because of new inexperienced staff, product quality problems can arise along with a decrease in production efficiency. The impact of a lack of workers on warehousing security and product quality can be seen through an increasing number of accidents and injuries, equipment mismanagement, property damage, and internal theft.

Data Breaches and Inadequate Cyber Defense

When it comes to the security of your company’s supply chain, you want to make sure that it is secure while remaining efficient.

A good way to increase the security level of your supply chain is by investing in strong security services and software. This software will help you to track shipments, monitor them for any errors, and notify the sender if there are any issues.

Data breaches happen every day in every industry, but they can be disastrous for retailers who rely on consumer trust to make sales. When a company has networks that are especially vulnerable to risks, then the company has a high-risk supply chain.

A higher risk level may mean that the company’s products are more likely to be counterfeited or its message is easier to hack by competitors. A lower risk level might mean that the company has less chance of being late on delivery or late on payments.

Precautions you can take include:

  1. Have Different Passwords for Different Accounts
  2. Encrypt Sensitive Data when Possible
  3. Have Separate Passwords for Critical Systems
  4. Use Two-Factor Authentication (2FA)
  5. Encrypt All Data at Rest and in Transit
  6. Use Secure File Sharing Tools to Share Sensitive Files

Third-Party Disruptions

Third-party vendors are a common issue that companies have to face. It is a difficult problem that can not be solved by the company alone. 

The best way to combat third-party vendors is to first understand their motivations. If they are providing a cheaper service, then they might be doing so because there is not enough demand for their service due to the competitive marketplace which in turn leads to high prices and low quality of work.

Third-party vendors are mostly seen as harmless counterfeits because they sell the same, low-quality products at a cheaper price. However, some of these vendors might be hurting your supply chain and your business.

  • Create an inventory list and check product codes when you receive goods from third parties.
  • Hire private investigators to find out where these vendors are getting their products from
  • Create a brand-safe environment with strict warehouse security procedures, including fingerprinting of employees and background checks.
  • Monitor social media for potentially damaging rumors about your brand.
  • Continue to do business with third party suppliers that don’t seem to pose a threat.

Overcoming Security Risks to Your Supply Chain

Businesses are now facing a new shift in the market that is based on three main factors: the shift towards online shopping, the shift to customer-centricity, the shift to better security for their data, and the loss of labor. These are all major changes that have started to happen over the past few years.

The future trends of retail fulfillment solutions and automation will be focused on increasing margins by reducing costs and increasing productivity. This includes leveraging new technologies to optimize operations, improve customer experience, create better HR practices and training for employees, and logistical improvements.

Logistics and Data

Logistics is a critical component of supply chain management. To be able to efficiently manage logistics, it is important to have an understanding of the supply chain. Technology can assist in the management of logistics and resource coordination for companies by providing better insight into how resources are being utilized, what inventory is available, and what availability gaps exist.

AI can also provide data on factors such as equipment downtime, production delays, and shipment delays. These data points help in understanding the causes of any delays so that corrective actions can be taken before they escalate out of control. In addition, this can help in managing resources by recommending the most efficient routes for transportation based on real-time traffic information or predicting future customer demands with predictive analytics.


Although there are many initiatives to reduce employee turnover, employers must understand the underlying social and economic factors that contribute towards high attrition rates. The key is to provide employees with opportunities to grow, develop, and take on new challenges in their careers without any fear of being replaced or demoted.

A company’s human resource department is responsible for recruiting, interviewing, hiring, and retaining employees as well as providing them with an appropriate work environment and opportunities for career growth. It also ensures that there is a healthy balance between lower-level employees who do not require specialized skill sets and those who do. Maintaining a good environment like this will improve your warehouse security.


With a security partner like OPS Security, you can develop and implement a security program that can combat the warehouse security risks that threaten your supply chain. Warehousing management isn’t easy and there are many intricacies that a knowledgeable security manager can speak to, regardless of your industry. Warehouse safety training, emergency preparedness, and warehouse security risk assessments are only part of the security services we can provide. Adding outsourced security to your warehouse could mean having a better way of tracking inventory, preventing internal and external theft, establishing good cybersecurity structures, and having business security for your property.

OPS Security Group has over 80 years of combined experience protecting executives, businesses, residents, guests and government officials throughout Pennsylvania, Delaware, Maryland, Washington D.C. and New Jersey. As a regional security alternative with a service-first approach, we offer a level of customer service that international providers are too big to deliver. If you’d like to learn more, you can contact us at https://opssecuritygroup.com/contact/

About OPS

OPS Security Group has over 80 years of combined experience protecting executives, businesses, residents, guests and government officials throughout Pennsylvania, Delaware, Maryland, Washington D.C. and New Jersey. As a regional security alternative with a service-first approach, we offer a level of customer service that international providers are too big to deliver. If you’d like to learn more, contact us!

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