Information Security Risk in the E-Supply Chain

Abstract

Collaboration between supply chain partners, facilitated by integration of information flows, has created more efficient and effective networks. However, the benefits of interconnectivity are not gained without risk. Though essential to support collaboration, increased use of information technology has removed internal and external protective barriers around an organization’s assets and processes. Thus, supply chains are better able to satisfy the needs of customers while more vulnerable to an array of IT-specific risks. This chapter identifies the sources of IT threats in the supply chain, categorizes those threats, and validates them by means of a survey of 188 companies representing a range of supply chain functions. Analysis suggests that supply chain risk is affected by IT threats, and therefore the benefits of collaboration facilitated by IT integration must exceed the increase in risk due to IT security threats.