Preventing Fraud in the Manufacturing Supply Chain

Preventing Fraud in the Manufacturing Supply Chain

As a country with the fourth largest population in the world, household consumption has a significant impact on Indonesia’s economy.

From food items to various household goods, household consumption is a crucial component in economic growth calculations. An increase in household consumption stimulates economic growth by boosting demand for goods and services. It is also a key factor in calculating the Gross Domestic Product (GDP) and contributes to maintaining Indonesia’s economic stability.

Manufacturing and supply chains are integral parts of household consumption, where goods or products are processed from raw materials and distributed to the public.

Therefore, security disruptions such as fraud in manufacturing facilities and the supply chain pose a significant threat with substantial impacts on companies and the general public’s consumption.

So, what are the security threats in manufacturing, and what are effective prevention measures?

 

Manufacturing Security Threats

With daily activities involving the production of high-value goods in large quantities, employing hundreds to thousands of factory workers, fraud is a major threat commonly found in manufacturing facilities and their distribution processes.

Areas prone to fraud include:

  • Warehouses, both for raw materials and finished products, are susceptible to stock embezzlement. Large quantities of materials or goods make data manipulation and theft potential risks.
  • Loading docks, where goods enter or leave, are susceptible to manipulation of measuring instruments or weighing devices for incoming materials or outgoing products.
  • Transportation of goods, from raw materials to finished products, using logistics fleets is vulnerable to the risk of theft.

Other common threats include a large number of workers, allowing for planned or organized criminal activities involving multiple departments or divisions.

Hygiene factors also pose a challenge in manufacturing facilities, especially those involved in food and/or beverage production.

Additionally, waste and environmental factors play a crucial role in maintaining the security of a manufacturing facility. Areas like water treatment and waste disposal are prone to security threats that can result in environmental pollution affecting the surrounding community.

 

Integrated Security Solutions for Manufacturing Security

Security threats, such as fraud, in manufacturing facilities can be triggered by various factors. Effective security measures go beyond vigilant Manned Guarding, sophisticated CCTV, and Alarm Systems; collaboration between human and technological elements is key.

Hence, Integrated Security Solutions is an appropriate solution for manufacturing facility security.

 

Security Risk Assessment for Manufacturing Facilities

Internal Security Risk Assessment (SRA) for manufacturing facilities involves assessing threats from external sources and vulnerabilities caused by internal negligence in asset security. This includes determining security zones (public areas, restricted areas, etc.).

External SRA includes assessing socio-cultural and environmental factors. Assessment of the characteristics of the surrounding community to its political climate is essential.

 

System and Concept of Manufacturing Facility Security

After completing the SRA phase, the next step is to determine the system and concept of security for manufacturing facilities. Based on the SRA results, Nawakara can recommend an effective combination of human security elements and machine/technology.

Human security elements include Manned Guarding with a patrol system using Android (Nawakara Digital Patrol) and mitigation through routine rotation of Manned Guarding officers and supervision by a supervisor.

Meanwhile, machine/technology elements include AI-based CCTV Analytics, Visitor Management Systems applicable to various layers/zones, and Alarm Systems used to alert security actions.

These elements are then integrated into a Command Center, used for real-time visual monitoring that can mitigate sabotage actions.

 

Manufacturing Security Solutions

Nawakara’s Integrated Security Solutions provides effective and efficient manufacturing security solutions. Through an initial Security Risk Assessment (SRA) approach, we can identify vulnerable areas and individuals prone to fraud.

Our integrated services cover human security elements, machine/technology, and their integration with a Command Center, making it easier for you to focus on your business operations and avoid operational disruptions caused by security threats.

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