With the recent bill passed by the US government on its citizen’s limited data accessibility to countries of some risks, supply chain operations are at the cornerstone of foreseeable challenge.
Home > Insight> 2024 U.S. Personal Data Order: Impact on Supply Chain
Customized experience.
The term alone harnesses a company’s future and how well its offerings and services are attuned to it. An organization funnels a lot of capital in ensuring customer retention is always at its peak. From putting the complete focus on logistics operations and ensuring timely delivery of the order to accounting for the reverse transaction (returns and reorder of the consignment) – metrics are well defined to SCM and the process’s stakeholders involved. However, all of the user experience and how a target group will react to the company's services is generated from the data gathered by the organization. Think of it from an e-commerce point of view. Conglomerates from Amazon to Flipkart gather their userbase details, which covers identity (Name, gender, phone, etc.), engagement (CTR, bounce rates, conversions, etc.) and behavioral patterns (purchase history, abandoned shopping carts, session duration, etc.), to adapt to the best of their ability to deliver the ultimate user experience. All this customization has one key element attached to it: to what degree is the user’s information available to an enterprise?
With data being a prized asset equal to the levels of oil, it is indeed no wonder that authorities are now keeping a close check on to what degree the conglomerates are utilizing the information, or in fact, in some cases, exploiting it for their gains. A sentiment that recently found more voice with the US putting restrictions on personal data usage in the supply chain. The executive order is designed to limit the transfer of personal facts of US demography to certain countries on grounds of safety. While the government has mentioned the law isn’t intended to impact international trade, it is understood that the limitation of insights will have a somewhat domino effect on how businesses operate, the technology at play, and the consumer experience.
Which brings us to the question which needs addressing. How does data security play itself out in value chain logistics, and why is it essential?
Almost every function churns out vast sets of information daily, and these repository, when left unsecured, can be problematic for the company. The importance of data security stems from the fact that from every logistic application to the IoT device involved, there are streams of intelligence running concurrently, highlighting the over-reliance on information and its timely usage. Since logistics functions require real-time feed for tracking devices onboard, the tech at work remains equally vulnerable to disruptions and possible theft.
To understand the implications of the recent order by the US govt., let us first put the spotlight on how data and its safety are handled in the value chain industry.
When SCM designs the security framework for information and its usage, there are three vital components that are kept in mind. These are data confidentiality, integrity, and availability. An IT section of an organization ensures that whatever laws are being applied adhere to the pillars mentioned above as it helps prevent unauthorized access, transfer of sensitive info, and any unwarranted changes. However, when it comes to constant monitoring and daily utilization, quite a few measures have to be kept in mind for efficient usage and utmost compliance.
Now, with the management’s role defined, it brings us to the context of this write-up on how the limited transfer of US audience data will disrupt the global supply chain operations. While the subsequent impact will be visible in the time to come, leaders across the globe have analyzed the crucial pillars of value chain functioning that stand to be affected.
The change in the recent data law will surely push conglomerates to the avenues of adaptability. Leading to smart innovation, which, when backed, can be infinitely rewarding to the supply chain industry. All that now remains to be seen is how the industry aces the challenge on hand.