Abstract-Before Sept.11, 2001, thequestion “what is supply-chain security” would surely have brought out the moretraditional areas of risk management---natural and man-made disasters;equipment and infrastructure failures; regulatory requirements; lossprevention; geopolitical events; and personnel strikes. Today, especially afterthe attacks of Sept. 11, supply chain security has taken on a whole new levelof meaning and immediacy. It’s now a primary consideration that needs to beaddressed as comprehensively as any other part of running the business. Andaccordingly, it needs to undergo the same rigorous economic analysis as anyother key activity. This paper discusses the problem of supply chain securityfrom five aspects, it starts from brief introduction, and then, discusses theimportance of security strategy within the supply chain, next, six steps ofconducting security management were analyzed; Fourth, the impacts of conductingsupply chain security management on different members within supply chain werecategorized into three category; finally, all the discussions were brought toan natural conclusion.     

Key words:supply chain,supply chain management, security 

I.Introduction

Before Sept.11, 2001, the question “what issupply-chain security” would surely have brought out the more traditional areasof risk management---natural and man-made disasters; equipment andinfrastructure failures; regulatory requirements; loss prevention; geopoliticalevents; and personnel strikes. (William, 2003)

Today, especially after the attacks of Sept. 11,supply chain security has taken on a whole new level of meaning and immediacy.It’s now a primary consideration that needs to be addressed as comprehensivelyas any other part of running the business. And accordingly, it needs to undergothe same rigorous economic analysis as any other key activity. (Quinn, 2002)

II. The Analysis of the Importanceof Security Strategy in Supply Chain 

In the past, most ofthe companies had actually experienced supply chain disruptions. Transportation& Logistics at the Massachusetts Institute of Technology (MIT)distinguishes 6 different types of failure modes.