Top 3 ISO standards to feed into your ISO supply chain management
In today’s competitive business landscape, having the correct ISO standards for your supply chain management can transform how your organization operates. ISO accreditation is not just a badge; it signifies a commitment to quality management that extends beyond your internal processes to your suppliers who play a crucial role in your business's success.
Understanding that compliance cannot occur in isolation, ISO standards for supply chain management advocate integrating quality management practices with those of your suppliers. Let's explore the top three ISO standards that can help you enhance your operations, strengthen control, reduce risk, and embed security throughout your ISO supply chain.
ISO 22301 and business continuity
What would happen if a key supplier suddenly went bankrupt? Or if a critical shipment was delayed beyond its deadline? Or if you experienced a power outage?
ISO 22301, the business continuity standard, equips you with the strategies to handle such scenarios effectively.
Accreditation involves:
- Pinpointing critical processes that your business needs to remain operational
- Assessing associated risks through a Business Impact Analysis
- Developing and testing continuity plans to ensure critical processes continue uninterrupted
Managing supply chain risk is integral to ISO 22301. An auditor will want to see that you've planned for events that could disrupt your suppliers' operations, from transportation issues and natural disasters to financial challenges and technological failures.
Achieving ISO 22301 certification helps your business adopt a more resilient approach toward suppliers, preventing any irreversible disruptions in your supply chain. By involving your suppliers in shared continuity plans and transparent risk assessments, you fortify your business continuity management system (BCMS).
ISO 27001 and information security
Long, complex, and international supply chains can compromise the security of information traveling through them, exposing your business to cyber threats and regulatory penalties. In a 2018 survey, 56% of organizations reported a security breach linked to vendor access, with an average of 471 third-party accesses to sensitive data per company.
To mitigate these vulnerabilities, an ISO 27001-certified information security management system (ISMS) is essential. This standard helps you manage the risks associated with both hardware and software systems, especially cloud-based solutions provided by third parties. By securing your ISO supply chain, you protect your business from potential cyber threats.
ISO 14001 and environmental management
For businesses aiming to reduce their environmental footprint, driving supply chain compliance with ISO 14001 is vital. One client leveraged their purchasing power to shift their supply chain toward more efficient, low-waste suppliers and processes, achieving both environmental benefits and significant cost reductions.
Studies indicate that profitability and public benefit can coexist. In fact, according to Bloomberg, ISO 14001-accredited businesses with environmentally conscious supply chains outperformed others by around 10% on the stock market in 2018.
Implementing ISO 14001 involves setting common objectives and KPIs, using the Plan-Do-Check-Act cycle for performance maintenance, and establishing a shared improvement plan. These efforts drive sustainability throughout your supply chain, resulting in broader positive impacts known as the 'green bullwhip effect'.
Conclusion
By adopting these ISO standards—ISO 22301, ISO 27001, and ISO 14001—you can enhance your ISO supply chain management, reduce risks, and drive sustainable business practices. These accreditations not only improve your operations but also position your organization as a leader in quality, security, and environmental stewardship.