Skip to content
Search

Latest Stories

Welcome! Log in to stay connected and make the most of your experience.

Input clean

Supply Chain Security

Supply Chain Security

You would probably be surprised to know what a logistical feat it is to manufacture a smart phone. The base materials are mostly silicon, plastic iron, aluminum, copper, lead, zinc, tin, and nickel. There are also a number of rare earth elements that are present in small amounts but are integral for the phone to function: neodymium, dysprosium, and many lanthanide elements. Once these materials have been collected and processed, they need to be made into the phone itself. After the phone is built, it must be programmed with the software that lets it run. The vast majority of this process takes place outside of the United States—with the assembly and initial programming usually happening in Asia and the base materials coming from all over the world—and it constitutes just a small part of the global supply chain that underlies a huge portion of our information technologies. It is truly an incredible feat of logistics, and every step of the process is vulnerable to events that can damage both the product and the enterprise.

To begin with, the base materials for most modern technologies are mined or in the developing world. This can sometimes lead to companies running afoul of international labor standards. These compliance issues usually result from operators on the ground mistreating workers in the developing world in order to keep costs low. Apple has come under fire for this on several occasions, including after a 2014 BBC report accused Apple’s assembly plants in China of perpetuating inhumane working conditions and its tin suppliers in Indonesia of using child labor. Apple has been able to avoid serious reputational harm from these criticisms, but not every organization will be able to do the same. Ensuring compliance with labor standards is an essential part of managing supply chain risk and protecting one’s business.

Keep reading...Show less
Access all of The Cipher Brief’s national security-focused expert insight by becoming a Cipher Brief Subscriber+ Member.

Related Articles

A Good NATO Summit, Though Russia Won a Round

EXPERT Q&A — NATO leaders convened in The Hague this week for a summit aiming to strengthen the alliance's defenses, with the ever encroaching threat [...] More

NATO Wins Will Have an Impact

CIPHER BRIEF EXPERT Q&A — NATO leaders convened at The Hague this week and agreed to raise the alliance’s defense spending target to 5% GDP, marking [...] More

Dead Drop: June 27

THIS WEEK: SURPRISES, SECRETS AND SPY COCKTAILS: This week’s best collection of national security gossip is filled with surprises, secrets and a [...] More

NATO Lures Trump Back - at a Cost

NATO Lures Trump Back - at a Cost

CIPHER BRIEF REPORTING – The stakes at this week’s NATO summit were sky-high – support for Ukraine, a shoring up of Europe’s defenses, and the [...] More

Report for Friday, June 27, 2025

8:11 America/Chicago Friday, June 27 [...] More

The Zbig Biography: No Small Feat!

BOOK REVIEW: Zbig: The Life of Zbigniew Brzezinski, America's Great Power Prophet by Edward LuceAvid Reader Press / Simon & SchusterReviewed by: [...] More

Report for Thursday, June 26, 2025

8:18 America/Chicago Thursday, June 26 [...] More

North Korea’s Sticking Points: Abduction and Uranium Enrichment

OPINION — In September 2002, North Korea’s supreme leader, Kim Jong-il, admitted to Japanese Prime Minister Junichiro Koizumi that North Korea had [...] More

Report for Wednesday, June 25, 2025

9:20 AM America/New York Wednesday, June 25 [...] More