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Supply Chain Risk Management

Supply-chain risk management (SCRM) is “the implementation of strategies to manage both every day and exceptional risks along the supply chain based on continuous risk assessment with the objective of reducing vulnerability and ensuring continuity”.

In other words, SCRM is to apply risk management process tools, with partners in a supply chain or on your own, to deal with risks and uncertainties caused by, or affecting, logistics-related activities or resources in the supply chain.

LP3 SCRM will reduce supply-chain vulnerability via a coordinated holistic approach, involving all supply-chain stakeholders, which identifies and analyzes the risk of failure points within the supply chain with continuous monitoring. Risks to the supply chain range from unpredictable natural threats to counterfeit products, and reach across quality, security, to resiliency and product integrity. Mitigation plans to manage these risks can involve logistics, cybersecurity, finance and risk management disciplines; the ultimate goal being to ensure supply chain continuity in the event of a scenario which otherwise would have interrupted normal business and so profitability.


DOD Instruction 4140.01

DOD Supply Chain Material Management Policy

In accordance with the authority in DoD Directive (DoDD) 5134.01 and the July 13, 2018 Deputy Secretary of Defense Memorandum, this issuance establishes policy and assigns responsibilities for management of materiel across the DoD supply chain.

The National Institute of Standards and Technology (NIST) estimate that 80% of malicious cyber intrusions happen via supply chains and that 98% of companies will be impacted by a supply chain breach. Two primary reasons make industrial supply chains the target of choice for cyber infiltrations.

SCRM NIST 800-161

Organizations are concerned about the risks associated with products and services that may contain potentially malicious functionality, are counterfeit, or are vulnerable due to poor manufacturing and development practices within the cyber supply chain. These risks are associated with an enterprise’s decreased visibility into, and understanding of, how the technology that they acquire is developed, integrated, and deployed, as well as the processes, procedures, and practices used to assure the security, resilience, reliability, safety, integrity, and quality of the products and services.

LP3 provides guidance to organizations on identifying, assessing, and mitigating cyber supply chain risks at all levels of the organizations. LP3 integrates cyber supply chain risk management (C-SCRM) into risk management activities by applying a multi-level, C-SCRM-specific approach, including guidance on development of C-SCRM strategy implementation plans, C-SCRM policies, C-SCRM plans, and C-SCRM risk assessments for products and services.

Section 889 Compliance

Section 889 of the 2019 National Defense Authorization Act prohibits the federal government, government contractors, and grant and loan recipients from procuring or using certain “covered telecommunication equipment or services” that are produced by Huawei, ZTE, Hytera, Hikvision, and Dahua and their subsidiaries as a “substantial or essential component of any system, or as critical technology as part of any system.”

Compliance to SCRM and Section 889 regulations needs to be on-going with continuous monitoring for risk management and mitigation. Failure to implement sound security practices can lead to security breaches of internal data and/or customers’ sensitive information. Additionally, violating compliance rules can subject a contractor not only to contractual and financial penalties, but also potentially to civil monetary penalties, and criminal sanctions. Putting in place an effective security compliance program using automated tools enables you to minimize risk, comply with contract security requirements, and aid in securing new awards.

LP3 provides scanning of existing vendors & suppliers, vetting of new ones, continuous monitoring of the supply chain to include SCRM required plans to ensure compliance and continuation of contract awards.


Making the Unknown Known

LP3 SCRM, with AI technology, visualizes and assesses your supply chain as well as acts as your 24-hour news channel, reporting on relevant events that impact your multi-tier ecosystem when they happen. Our technology analyzes millions of real-time inputs from over 85,000 live data feeds to provide:

  • Up-to-date data visualizations of your ecosystem so you can understand the 3rd party of your 3rd party to the nth tier
  • Health scores, insights and firmographics of targeted suppliers
  • Real-time monitoring of events that impact your global supplier ecosystem

Enhance Supply Chain Visibility & Knowledge LP3 offers three unique features that provide rich insight into your supply chain ecosystem so that you can see your sub-tier supplier relationships, identify opportunities or risks affecting your network, and proactively manage them. SCRM Net Discovers, visualizes and analyzes multiple tiers of your extended supply chain SCRM Alert Continuously monitors your suppliers and provides insights into events impacting your global sub-tier supply chain SCRM Score Provides an indicator of health for your suppliers’ ecosystem across 5 key health factors.

Visualize Like No Other LP3 discovers and visualizes your multi-tier supply chain, so you can see your supplier’s suppliers, and beyond.

Prioritize What Matters We provide unique supply chain insights that reflect your business priorities so you can be proactive, not reactive.

Stay One Step Ahead We analyze millions of real-time inputs from over 85,000 aggregated live data feeds, producing updates specific to your suppliers.


  • Supplier Concentration
  • Country of Origin
  • Supplier Diversity

Due Diligence Accountability

  • Risk Management
  • Ethical Sourcing
  • Sustainability

Counterfeits Advantage

  • New Revenue Opportunities
  • Alternative Sourcing
  • Brand Reputation
  • Business Resilience


LP3 powered by Interos is the first and only Business Relationship Intelligence Platform to protect enterprise ecosystems from financial, operations, governance, geographic, and cyber risk in every tier of enterprise supply chains, continuously.

We are on a mission to PROTECT your data, privacy, and infrastructure

Let us help you keep your organization safe from a cyberattack.

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