How to create security for high-tech goods across the supply chain

The reliance on multiple tiers of outsourced design, supply, logistics and manufacturing has increased the complexity of the industry’s supply chain and complexity inhibits supply chain visibility according to analyst Craig Gottleib. It provides greater opportunities for product tampering. It conceals poor-quality suppliers and counterfeit components. In addressing their cost and margin problems, OEIs (original equipment integrators ) have created a security problem.

Tech companies have made supply chain investments that have increased manufacturing efficiency, reduced transportation expenses and improved service levels, but they have not fully addressed gaps in visibility and quality that compromise supply chain security. Supply chain security requires a comprehensive solution, rooted in disciplined processes and supported by technology, that is properly aligned with the different types of products that move across the chain. A secure supply chain protects high-tech products and embedded software against purposeful tampering, component substitution and adulteration. It protects end users from product failure or sabotage and brand owners from financial and reputation losses. The multitier supply chain, with its shifting and overlapping network of global logistics, design, component and manufacturing providers, poses a unique challenge: Investments in security must be proportionate to the financial and community risk posed by the failure of the end-use application.

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