The weakest link: The supply chain security
Today’s increasing and evolving global threats are strong indications for companies to re-evaluate and reinforce their supply chain security.
Praesidio Group guides companies seeking to heighten their supply chain security through enhanced facility defense, secure freight containers, and employee vetting, as examples of identifying and addressing the weakest link in the chain. Such upgrades will not only expedite the client’s application to programs such as CTPAT and the EU’s Authorized Economic Operator (AEO), but shows deep rooted commitment to the business itself.
“Supply chain security is not a cost for business, but a long-term investment.
A smart security plan prevents you from losing your business.
That is a mindset which companies should cultivate in order to secure their present and future,” says Susanne Skov Diemer, Founder and CEO of Praesidio Group.
“Security awareness must be anchored in upper management for it to be effective. This is the only way to really stay one step ahead of the rising and ever-changing global risks targeting the weakest link in the supply chain,” continues Richard Klugman, Vice President at Praesidio Group.
Counterfeit goods comprise 3.3% of world trade and an alarming 6.8% of imports into the EU. It is estimated that between 2012-2016, legitimate companies lost €92 billion to intellectual property rights (IPR) infringement and an increase in counterfeit production due to low risk of detection and high profits will likely continue. “The production and distribution of counterfeit products are alleged to be associated with criminal gangs… [which] are set up across borders… and seek to take advantage of weaknesses in supply chains… and factory over-runs”¹.
Company identity theft, compromised storage areas, and factory over-runs (unauthorized manufacturing of goods by licit suppliers outside the licensing agreement) are growing concerns to companies of all sizes. As the average cost of combating counterfeit goods per company is €115317² the damages caused by lax security are heavy. “Prevention is not an investment; it is a way to assure success. Otherwise your business potential could be destroyed overnight by a security breach, your supply chain manipulated by criminals, and your brand name tarnished from the publicity therefrom,” notes Richard Klugman.
Praesidio Group assists companies globally in closing these gaps by identifying weak links in their systems. It prides itself on finding the right solution for its clients’ security risks, whether they be supply chain security, commercial fraud, customs fraud, internal theft, embezzlement, IPR violations, or questionable business partners.
“Security is so much more than guards and fences. Criminals are creative and we should be ahead of their game, rather than chasing after them. Threats change at all levels of the supply chain and in all aspects. Yesterday’s security risk plan can be redundant tomorrow – we need to keep revolving with the times,” states Susanne Skov Diemer.
¹ Organization for Economic Co-operation and Development (OECD) and the European Union Intellectual Property Office (EUIPO), Executive Summary – 2019 Status Report on IPR Infringement.
² Id. At 25.