Understanding the SOC for Supply Chain Report

Supply chains were pushed to their breaking point through the global COVID-19 pandemic, and geopolitical tensions, economic instability, and increasing cybersecurity concerns continue to threaten the global supply chain. As a result, supply chains are evolving and becoming more complex in an effort to prevent a situation similar to what we have seen from 2020-2022.

Understanding the fragility of our supply chain and its vulnerability to cyberattacks, the American Institute of Certified Public Accountants (AICPA) recognized the need for members of the supply chain to have a better understanding of controls in place within supply chains. With this goal in mind, the AICPA created the System and Organization Control (SOC) for Supply Chain framework to allow companies to communicate information about their processes and controls to detect, prevent, and respond to supply chain risks. In order to better understand the importance of supply chain controls, it’s crucial to understand the emerging trends that are reshaping the supply chain.

As organizations look to avoid the risks of fragile supply chains by utilizing digital transformation, diversifying their suppliers, and forming new relationships, it is imperative that they know the risks upon entering into new relationships. Having access to relevant data will allow organizations to make informed decisions on the entities they partner with and have the reassurance that controls are in place to protect sensitive information.

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