Supply Chain Risk Management: Threats and Solutions

Introduction: Supply Chain Risk Management in the Global Economy Environment

Despite the fact that the reinforcement of information security and the enhancement of the data management processes is reasonably viewed as the key priority by a number of organizations at present, the improvement of the existing supply chains w and the relevant supply chain management (SCM) processes will require that a change in the design of the urban environment should be carried out, with the emphasis on the creation of a smart city.

Thus, the transfer to the A3 framework as opposed to the current EPI one and the further enhancement of the data management quality will become a possibility. Consequently, the primary SCM stages, including the ones associated with the communication with suppliers, customers, shareholders, etc., will be carried out in a more efficient manner.

Furthermore, the quality of the end product will be improved significantly due to a reduction in the percentage of errors occurring due to misunderstandings, as well as the number of defects produced by organizations. Thus, the redesign of the urban environment with the subsequent adoption of the API model and the focus on improving the repeatability and reproducibility of the SCM-related processes must be viewed as a priority by modern organizations operating in the realm of local markets.

Information Management and Security: IT Issues and the Danger of Cyberattacks

External Threats and the Means of Addressing Them: Reinforcing Security

The issue of information security is, perhaps, among the most common threats that a company operating in the context of the global economy may experience. Indeed, the instances of cyberattacks are growing increasingly more numerous, and the malware produced by cybercriminals is becoming more sophisticated (Larson 14). Therefore, there is a consistent need for providing the staff members with the necessary training that will help them avoid the standard traps created by malefactors.

Internal Threats and the Means of Addressing Them: Promoting Active Knowledge and Skills Acquisition

However, in some cases, the threats associated with the data management come from within. For instance, the infamous mislabeling incident that occurred at Target due to the faults of the Egyptian cotton product suppliers could have easily been avoided with the introduction of the tools that allow for a rapid and efficient transfer of the relevant data from one company department to another. The use of IT tools as the means of information management would have allowed for an increase in the repeatability and reproducibility levels during the production process and, therefore, led to the improvement of the SCM process (Revelle 212-214).

API as an Alternative to EDI: Electronic Data Interchange Is Over

In order to introduce a new solution to the issue of data management within a supply chain, Electronic Data Interchange was designed. With all due respect to the quality of information management that the specified tool provides, one must admit that the process turns out to be extraordinarily costly. Consequently, the popularity of EDI seems to have been dropping at an escalating rate, whereas the emphasis using a new and improved approach known as (API) has been placed recently.

It should be noted, though, that the transfer to the use of API instead of EDI is bound to be beyond challenging. The EDI format as the means of information management and the tool for transferring the existing records into digital data has been in use for a substantial amount of time, which means that the introduction of a new approach will require even more time. Not many organizations may be willing to take the expenditures required to introduce the new approach into the framework of their operations. Furthermore, the incorporation of the API technology into the operations of an organization is bound to slacken down a range of processes due to the nature of the framework (Hyysalo et al. 127).

That being said, the API tool does offer numerous advantages compared to the standard EDI format. For instance, the presence of the value-added network (VAN) in the context of the EDI framework suggests that outsourcing from a third-party provider must be used to manage the specified issue. API, on the other hand, does not require that the specified actions should be taken. Therefore, it can be deemed as a superior tool compared to EDI. The necessity to translate the format of messages sent by customers from the default one to EDI and then back to the default format, in its turn, is also likely to cause significant inconveniences and lead to problems in the management of the data. Apart from time issues, the identified process will require extra costs, whereas the API framework will not imply suffering the related expenditures (Strasser et al. 326).

The ease of use by which API can be characterized is bound to make it a much more efficient and, therefore, increasingly more popular tool in addressing the issues associated with the information transfer in the context of the SCM process. Furthermore, the tool is becoming increasingly more popular due to its scalability, which should also be listed among the primary advantages that will make API a more efficient framework for data management for a range of small and medium businesses (SMEs).

Changes and How to React to Them: Companies on the Verge of a Major Reconstruction

Corporate Changes

As stressed above, the introduction of the API system into the design of modern organizations will require a rapid change due to the need to integrate the existing corporate systems with the new data management tool successfully. The connectivity of legacy technologies, which the use of API provides, can be considered one of the primary advantages to the business and, therefore, the opportunity worth pursuing. For instance, in case a new tool for retrieving the relevant data (e.g., a mobile application) is introduced into the company’s framework, the API layer will help transfer the essential information over the EDI protocols and, therefore, contribute to a faster and a more successful connectivity process (Teegalapally et al. 1246).

Global Changes

Building the Smart City is one of the approaches toward introducing the target public to the change in the information management and taking the subject matter to a new level, where people will be able to enjoy the suggested products by using a single IT platform. However, the specified goal is fraught with numerous challenges.

Furthermore, a smart city will require extensive support from the local authorities because of the need to maintain a consistently sustainable use of resources. For instance, the development of a topographical network that will lead to minimizing the levels of resource consumption and, therefore, the enhancement of a sustainable resource usage, deserves to be brought up among the possible tools for managing the transfer from EPI to API on a statewide level.

The infrastructure of a smart city must be planned in the way that will allow for a reduction in the exertion routing applications: “While applications exist that construct routes of minimal exertion for vehicles, bicycle riders, and pedestrians, they are at core based on minimizing distance and time, as they select arcs of minimal distance and time costs to generate routes” (Payne and Dror 1200). For this purpose, one should consider the issues such as the introduction of new intersections, smart use of elevations for the further increase in the speed of vehicles and, therefore, the success of data transportation.

As a result, the delivery of the essential results is bound to be rapid and efficient. With the help of IT tools, one will be able to develop a comprehensive topogram of any city, therefore, allowing for a significant improvement in the infrastructure based on the current use of the available space. Consequently, an immediate improvement in the process of delivering the essential data and, thus, the functioning of numerous companies, can be facilitated. The change in the processing of information, in its turn, will trigger a rise in the product and service quality. Thus, the foundation for building more favorable environment for running a business and carrying out entrepreneurial activities can be provided (Payne and Dror 1203).

The identified changes are bound to affect the SCM processes positively. Needless to say, the enhancement of data management will inevitably lead to a drop in the number of misunderstandings and errors occurring in the process of delivering raw materials or products from one point of destination to another and, finally, to the end customer. Therefore, the introduction of a change in the current infrastructure of the urban environment with its further redesign toward a smart city is bound to have a tremendously positive effect on the enhancement of SCM processes and, thus, the development of small and medium businesses.

Conclusion

Active focus on the information management that has been observed in the business environment over the past few years shows that there is an urgent need in introducing a new system of transmitting data. Although the current framework delivers the services that are sufficiently good, the impetus for a gradual yet consistent improvement is required. For this purpose, the reconsideration of information management is necessary. Particularly, the use of EPI as the foundation for information processing and its further transfer will have to be revisited. Because of the expenses that it requires, the current framework needs to be challenged and, possibly, substituted with the one that will allow meeting the needs of the population more successfully.

The enhancement of the API framework will presumably allow transferring the target business environment into a smart city that will incorporate a more sophisticated infrastructure. As a result, an impressive rise in the efficacy of SCM processes across the city can be expected.

It is expected that the focus on the use of API technologies and the creation of the environment in which a smart city can be built will allow for not only improving the quality of the product but also taking the relationships between the key stakeholders to an entirely new level, where reciprocity can be achieved by retrieving feedback in a timely manner and analyzing it fast. Once all stakeholders involved are introduced to a new philosophy of data management, a gradual improvement in the operations related to the SCM process can be expected.

Works Cited

Hyysalo, Jarkko, et al. “Consent Management Architecture for Secure Data Transactions.” ICSOFT-EA 2016 – 11th International Conference on Software Engineering and Applications, edited by Enrique Cabello, ICSOFT-EA, 2016.

Larson, Stephen. “The Cyber Security Fair: An Effective Method For Training Users To Improve Their Cyber Security Behaviors?” Information Security Education Journal, vol. 2, no. 1, 2015, pp. 11-19.

Payne, Katherine Carl, and Moshe Dror. “The Development of a Smart Map for Minimum “Exertion” Routing Applications.” Proceedings of the 50th Hawaii International Conference on System Sciences 2017, edited by Ralph H. Sprague, IEEE, 2017.

Revelle, Jack B. Manufacturing Handbook of Best Practices: An Innovation, Productivity, and Quality Focus. CRC Press, 2016.

Strasser, Carly, et al. “DMPTool 2: Expanding Functionality for Better Data Management Planning.” International Journal of Digital Curation, vol. 9, no. 1, 2014, pp. 324-330.

Teegalapally, Vivek, et al. “Survey on Data Profiling and Data Quality Assessment for Business Intelligence.” International Research Journal of Engineering and Technology (IRJET), vol. 3, no. 11, 2016, pp. 1246-1247.

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