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The recent weaponization of pagers and radios in Lebanon serves as a powerful wake-up call to CEOs and governments worldwide; businesses must improve supply chain visibility now.
Pagers and hand-held radios used by the Lebanese militant group Hezbollah exploded across Lebanon this week in what is speculated to be a result of complex supply chain infiltration. Combined, the attacks killed at least 14 people and wounded over 3,000 people, including Iran’s ambassador to Lebanon. It is widely believed that explosive materials were added prior to the devices being imported and detonated in a coordinated attack against Hezbollah, who used the devices instead of smartphones to communicate to avoid Israeli electronic surveillance.
Following these attacks, “Every CEO and board has woken up to the fact that the products they make could be weaponized if they’re not careful,” says Resilinc CEO Bindiya Vakil. What does this mean for the future of supply chain risk management? In this blog, we explore the background behind the attacks, including the web of companies and suppliers mentioned. Then, examine how this new risk affects companies across the globe and underscores the dire need for enhanced supply chain visibility.
Who Manufactured the Pagers and Radios?
Explosives were planted inside approximately 5,000 AR-924 pagers imported to Lebanon from Taiwan. While the pagers came from the Taiwan-based company Gold Apollo, the company denies making them, saying that they were made by the Hungarian company BAC, which was authorized to use their brand. However, BAC has also denied making the pagers, with the Chief Executive stating, “I don’t make the pagers. I am just the intermediate.”
The hand-held radios, or walkie-talkies, are reportedly IC-V82 radios manufactured by the Japanese firm ICOM. However, ICOM discontinued this model in 2014, even releasing a warning on spotting counterfeits. According to Brussels-based military and security analyst Elijah Magnier, Israel would have needed access to the supply chain of the devices to embed an explosive trigger. Although Israel has not made a direct statement regarding the explosions, two U.S. officials and a senior diplomat in the Middle East informed NBC News that Israel was responsible for the attack.
Possible Aftershocks on Global Supply Chains
- Increased Supply Chain Mapping Mandates: Government agencies and industry leaders worldwide have been discussing the issue of supply chain security for some time. During the Obama administration, the Department of Homeland Security expressed concern that hostile countries could embed malicious parts in devices to spy. The recent attacks in Lebanon have escalated these already heightened concerns. As a result, we expect to see increased supply chain mapping mandates implemented around the world.
- Impacts on Brands: The Japanese and Taiwanese companies at the center of this have been thrust into the spotlight, highlighting the risk for all businesses. Events like this can have severe impacts on company brands. For example, if ICOM is not complicit, this event could still impact their brand, business, customer trust, long-term agreements, etc. This company has been around since 1964, and its products were weaponized. Companies have dealt with counterfeits before, but not this problem.
- Heightened Political Tensions: According to Resilinc’s latest EventWatchAI alert, heightened geopolitical tensions between Hezbollah and Israel could destabilize the region, affecting trade routes and increasing risks for shipping and logistics companies operating in or near Lebanon and Israel. Additionally, the incident might prompt tighter security measures and trade restrictions, leading to delays and increased costs.
Why Companies and Governments Need Better Supply Chain Visibility
These events put the spotlight on supply chain risk management shortcuts that are taken every day, creating an urgent need to map the supply chain and collaborate with suppliers. Too often, companies are focused on checking a box that says they have mapped their supply chain without taking the time to truly understand where parts come from. Today, the products we use are more connected than ever and incredibly vulnerable, with components sourced from a global network of suppliers hidden by third-party relationships.
In the wake of these events, companies can no longer simply check a box. They must dive deeper into the sub-tier supply chain to reveal these third-party relationships with distributors, resellers, contract manufacturers, and subcontractors, which create blind spots. Only by working with suppliers directly across multiple tiers and building strong connections can companies truly feel comfortable that they are protected.
How to Enhance Supply Chain Visibility with Mapping
Resilinc was founded to help companies build a resilient, sustainable, fair, and secure supply chain. For the last 14 years, we have been working on this problem, one supplier, one product, one part at a time. From our experience, we know that enhanced supply chain visibility comes from mapping your supply chain and understanding exactly where every part comes from.
This starts with collecting data using either AI or Supplier-Validated Data. We recommend using a hybrid approach that leverages the speed and broad reach of AI Mapping with the accuracy and depth of Supplier-Validated Mapping. Read our blog to learn more. Companies also must start including a software bill of materials (SBOM) when mapping their supply chains. An SBOM is a comprehensive list of all the items required to build a product’s software, including raw materials, assemblies, parts, components, and quantities of each.
Invest in Supply Chain Risk Management Today
Now is the time for companies to take responsibility for the products they make by working directly with suppliers deep in their sub-tier supply chain—there is no shortcut. They must not rely exclusively on distributors or contract manufacturers but take the time to verify who they are working with. Companies must make budget, time, and room for supply chain risk management and resilience programs on a continuous basis. These capabilities cannot be spun up overnight after a crisis happens. They have to be rolled out over time and become part of the organization’s DNA. Otherwise, your product and brand could be compromised.
Resilinc enables companies to quickly and effectively illuminate their global web of suppliers, so they can not only have peace of mind, but also the network and resources to act quickly when disruptions occur. Learn more about our Multi-Tier Mapping solution today.
