“Being trustworthy is more than a virtue; it’s an essential currency for business success today. This applies not only to an entity’s public reputation and business contracts, but also to building trust in supply chains that are vital extensions of any large organization.
Managing the many types of risk in supply chains today builds resilience for smooth operations but also trust — a foundation that supports all aspects of the organization.
The complex nature of building and maintaining trust in supply chains was the topic of a recent panel by MITRE, a nonprofit group that has created a System of Trust framework for supply chains. Exiger partners with MITRE and participated in the panel.
5 Key Elements for Building Supply Chain Trust
The necessity for trust in supply chains today is bolstered by these five factors:
1. Public-private collaboration
Complex supply chains span borders and regulatory environments, necessitating a harmonized approach where public standards and private sector practices align for seamless operations. One recent example is the guidance on managing open-source software and SBOMs from the Enduring Security Framework (ESF) — a collaborative partnership among industry, academia, and government.
The U.S. Partnership for Assured Electronics (USPAE) recently named Exiger a strategic technology partner to ensure government access to resilient and trusted electronics supply chains. The partnership will focus on using the latest technology to map, monitor, and secure electronics supply chains.
2. Robust risk models
The ability to predict and prepare for potential disruptions in supply chains hinges on risk models that are comprehensive yet comprehensible, allowing for swift interpretation and action. The models must also allow for evidence-based verification and constant monitoring, which demands the kind of massive computing power, advanced analytics and artificial intelligence found in a risk management platform like 1Exiger.
“In any given day we’re screening and categorizing between 8 and 12 million records,” said Skyler Chi, Head of Enterprise Accounts at Exiger, during the MITRE panel discussion. “There’s no human-based team in the world that can review this much content.”
3. Compliance with sustainability standards
Supply chain security is intertwined with sustainability. Compliance with relevant standards, like those for eradicating modern slavery or supply chain carbon emissions, becomes part of a comprehensive risk management strategy. Adhering to sustainability standards is not only about corporate responsibility but also about ensuring long-term viability, as consumers and regulators increasingly demand ethical practices.
“Nobody really cares where the sustainability risk is coming from as it touches you,” said Erika Peters, Global Head of Innovation and Operations at Exiger. “It could cause a reputational issue and a big cost to your business. So the key is if you want to do good business, you have to go beyond just your business.”
4. Software security assurance
The security of software used in supply chains is paramount. It involves the whole spectrum from design to vulnerability management, emphasizing the need for ongoing vigilance. With the rise of digital infrastructure in supply chains, securing software against cyber threats is non-negotiable to prevent interruptions and breaches that can have cascading effects.
The growing awareness and adoption of Software Bill of Materials (SBOM) in cyber supply chain risk management (C-SCRM), for example, is shaping the procurement discipline and what it means to be a trusted supplier.
5. Investment and executive buy-in
For any initiative to be successful, especially one as complex as supply chain risk management, it requires not only financial investment but also the strategic support of top executives. There’s a need today for significant investment in supply chain security, with a clear indication that executive buy-in is critical to embed resilience into business practices.
“We’re no longer cost centers,” said Chi, referring to supply chain risk management professionals. “I think we’re seeing sort of a seismic shift that we’re protecting the reputation of the firms we work for — to both create and protect shareholder value.”
A Platform for Building Trust and Supply Chain Resilience
Managing supply chain risks is no longer just about avoiding costs but is integral to ensuring business continuity, maintaining reputation, and fulfilling regulatory requirements. Investing in supply chain risk management has a strategic component that can drive revenue and ensure longevity in the marketplace.
The 1Exiger platform uses proprietary AI and machine learning technology to track nearly 10 billion supply chains, with an extensive database that aggregates 7 billion source records of supply chain installations and 1.3 billion contract records. It offers end-to-end supply chain visibility that also categorizes and risk-ranks the supply chain threats that could impact your organization’s operations and reputation.
The future of supply chain resilience hinges on multidimensional approaches, integrating technology, data, and human expertise to create systems that are not only secure but also sustainable and transparent.
Contact us to learn more about how Exiger can help build trust in your supplier network.
