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ISO 28000 Certification and Global Supply Chain Security Management

Posted on May 13, 2011 in Articles

Successful organisations are facing increasing competitive pressures to develop new supply networks, often global and highly interdependent. Supply chain risk is high for these organisations management as they can’t afford to have any security stoppages or losses that would affect their customers.

One of the tools that can assist in managing these risks is the ISO 28000 series of standards on supply chain security management. ISO 28000:2007 specifies the requirements for a security management system, including those aspects critical to security assurance of the supply chain. Security management is linked to many other aspects of business management specifically within the logistics area, targeting threats such as terrorism, fraud and piracy.

ISO 28000 is suitable for all sizes and types of organisation that are involved in purchasing, manufacturing, service, storage, transportation and/or sales processes, and wish to implement and maintain a secure management system for its supply chain. It covers the following:

•    Establish, implement, maintain and improve a security management system.
•    Assure conformance with security management policy
•    Demonstrate such conformance
•    Seek certification/registration of conformance by an accredited third-party organisation
•    Make a self-determination and self-declaration of conformance with ISO 28000.

Increased Awareness & Adoption
There has been an increased awareness and adoption of ISO 28000 in Singapore and the region. Several organisations comprising MNCs and SMEs have recently implemented ISO 28000 to manage supply chain risks such as those arising from fraud, terrorism and piracy.

Early feedbacks from certified organisations are encouraging with some larger organisations anticipating some $200,000 savings a year in operational costs mainly from reduced loss investigations, lower inventory management costs and increased warehouse productivity. However, ISO 28000 is competing for attention with many other initiatives, particularly in the risk management field.  The greatest drive for adoption is likely to come from industry giants when they make the standard a precondition for supplier selection.

In the words of one supplier: “the standards have merit but also carry implementation costs and we are coping with a wide range of regulatory changes and supply chain risk. We don’t see there being enough competitive advantage in being first, so we will wait until our customers say they want them.”

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