The world today is more of a global village, and more than ever, supply chains are more complex and depend on digital systems.

Although these developments have introduced several opportunities for efficiency and scalability, they have posed a considerable threat, particularly in document security.

Sensitive data such as contracts, invoices, and shipping forms should be locked to avoid unauthorized access.

The article examines the five most popular document security errors committed by organizations within the supply chain industry and provides ways of reducing such risks.

1) Use of Paper-Based Documentation

Although the world is moving towards digitalization in most sectors, paperwork documentation is a widespread phenomenon in supply chain activities. Purchase orders, shipping manifests, invoices, and so on are still usually processed, stored, and physically exchanged. This dependency on paper introduces several security threats to businesses.

Risks:

• Loss or damage: Paper documents are very easy to lose or be damaged because of natural calamities, accidents, or mismanagement.
• Lack of authorization: Paper documents may be accessed by anyone not authorized to access them, further enhancing the likelihood of breaching data.
• Inefficiency: Dealing with paper is time-consuming, and is very likely to slow down important decision-making because of searching through physical documents.

Solution:

Digital document management systems (DMS) are recommended to reduce these risks in the business. A document management system is an organised and accessible mechanism that offers privacy, information preservation, and management. Further, DMS platforms maintain an audit trail that tracks all document activities.

2) Lack of Adequate Access Controls and User Authentication

Lack of proper access control and authentication procedures to digital documents is one of the most common security errors. Most organizations provide wide access to sensitive information to employees without restrictions. Due to this, there is a greater risk of internal and external threats to organizations.

Risks:

• Unauthorized access: Weak passwords or a lack of multi-factor authentication (MFA) can give access to confidential files from unauthorized users.
• Internal threats: This refers to employees with too much IT access misusing or sharing sensitive information mistakenly.
• Violations of compliance: Lack of proper access controls can lead to the violation of data protection laws such as GDPR or HIPAA.

Solution:

It is imperative to install strict access control rules. To limit access to documents that employees may access, businesses should implement role-based access control (RBAC). Besides, the MFA feature is an additional protection implemented, which involves verification through various means to enter the system. Access rights of users should also be audited regularly to observe adherence to the principle of least privilege.

3) Failure to Encrypt Documents

One of the most appropriate methods to ensure the security of documents during transit and rest is encryption. Nonetheless, encryption is not applied or implemented by many organizations. This laxity exposes records to hacking, intrusion, and violations.

Risks:

• Data interception: Documents passed across the network without encryption can be intercepted and accessed by other malicious individuals.
• Breach of data: Leaving sensitive documents in an unencrypted form exposes the possibility of a data breach due to unauthorized access.
• Legal implications: There are a number of regulations mandating the encryption of sensitive data, such as GDPR and HIPAA. Violation of this may lead to severe punishments.

Solution:

In order to ensure effective protection of documents, companies should apply encryption procedures to data in transit, as well as data at rest. To illustrate, end-to-end encryption is applied in situations where documents are being relayed so that only the recipient can decrypt the message. To store the information, encrypted file storage systems are used to secure papers against unauthorized access. In addition, some services that redact PDF online also provide full encryption solutions that cover both the transmission and the storage of your supply chain documents. This also supports document automation in supply chain and logistics by making processes faster and more secure.

4) Nonexistence of Document Version Control

Contracts, orders, and invoices are some of the documents that are frequently revised during the supply chain operation. Nevertheless, version control is not applied in many businesses, and, therefore, outdated or erroneous documents are used. This may lead to misunderstandings and expensive mistakes in the supply chain activities.

Risks:

• Operational errors: The supply chain is vulnerable to mistakes related to using outdated documents, resulting in wrong deliveries or other financial errors.
• Compliance risks: It has been noted that regulatory requirements may require that the latest versions of some documents be used. The non-observance of this may result in legal penalties or fines.
• Confusion: In the absence of version control, employees would not know which version of a document to use, resulting in miscommunication and inefficiencies.

Solution:

In order to resolve this, a firm must adopt a document management system that contains automatic version control. This makes all the revisions of a document be saved and readily available. The versions must be well marked with the date and version number to prevent confusion. Moreover, the employees should be instructed about the necessity of using the latest version of the document to eliminate the risk of making mistakes.

5) Poor Back-Up and Disaster Recovery Plans

Data loss is also a critical issue, as any computer can get lost or damaged because of a cyber attack, hardware malfunction, or any natural disaster, so backup and disaster recovery plans are paramount. Nonetheless, most organizations fail to have appropriate backup procedures in place, endangering their important documents.

Risks:

• Loss of data: Without scheduled backups, vital supply chain records can be lost forever in case of a system crash or failure.
• Operational time loss: Data recovery following a breach or failure may consume lots of time, resulting in the loss of money through downtime and delayed shipment or orders.
• Reputational damage: Long periods of downtime or lost data can negatively impact a company’s image, particularly if client orders are delayed or disrupted.

Solution:

To regulate or manage data loss, it is important to have a well-established backup and disaster recovery plan in place. Make sure a backup process takes place regularly, and the data is stored in a secure off-site location. Along these lines, the recovery plan must be tested at all times to ensure its efficiency during an emergency. Companies can save their documents in cloud storage solutions so that they can access them from various places. These options will help minimize the loss of important data.

Adopting a Secure Digital Document Management System is Ideal

The activities associated with the supply chain are going to be more digital, yet the protection of important information continues to be considerably behind schedule. Companies can enhance their documents’ security by ensuring the above-mentioned mistakes are taken note of, so data leakages, errors, and disruption in operations can be curtailed. With proper strategies, organizations can improve the security of documents, management operations, safeguard data, and streamline their process efficiency.