Less than 20% of the German companies surveyed have inadequate action plans for important dangers and crises. As regards cyber risks, a survey conducted in Germany has shown that 48% of the participating companies were directly or indirectly affected by cyber interference in the last five years. A similar situation has been found in Austria, where 80% of the companies have already been confronted with IT incidents in the past, whereby a third of these being attributed to cyber-attacks. 24% of the cases, according to the SORA study, were due to negligent behavior on the part of employees or management. Many of these companies, regardless of size, are working in global supply chains and managing the latter has increased the data being exchanged among the companies. This increased data exchange bears several risks as illustrated above. As further risks, severe damage of data and/or IT infrastructure, the loss of proprietary knowledge and unintended revelation of crucial business insights to other supply chain actors can be named. Against the impact on SMEs in all European economies, the project will address risks small and medium-sized enterprises (SMEs) may be exposed to due to digital interactions in supply chains. The main objective of the project is to develop a VET training called “SMEs: Be prepared for supply chain risks” intended to better prepare SMEs for identifying and handling supply chain risks. The project targets SMEs, in particular, because they are important actors in value chains and a vital component of EU economies, but at the same time, they typically have limited resources to address and manage the supply chain risks properly. Additionally, the project addresses young professionals to prepare them for starting a position in an SME or even starting a new venture. The proposed project will be carried out transnationally as a supply chain - which is a connected chain involving several actors in the upstream and downstream flow of products, services, finance and information, extending from the point of origin to the point of consumption. Furthermore, it increasingly involves a dynamic transnational network to perform the activities. Thus, supply chain risks are also a transnational challenge and one can see different stages of maturity in different countries and industries. For example, in the automotive or pharmaceutical sectors supply chain integration is quite advanced while in the fashion or furniture industries this is not the case. For this reason, the project is based on a diverse set of industry sectors to which the “be prepared” VET training will be deployed. The methodology used in this project is based on a collaborative approach, thus our target groups, the SMEs, in particular, are involved from the beginning of the project, they thus function as sparring partners to increase the actual use of the be prepared training after the end of the project. The development of the training itself is supported by and takes advantage of recent eLearning techniques and learning labs. The outputs will be a best practice report and a motivational video to raise awareness regarding the project and its relevance. The “be prepared” training package and a practical guidance toolbox to support the successful implementation of the training package. As supply chain works across countries, firms can benefit from cross-national solutions. In this project, SMEs working in Austria, Estonia, Germany, Greece, Italy, and Portugal will be involved. The partners have been chosen deliberately based on their in-depth experience regarding SMEs, supply chain management and knowledge management at the research, teaching and practical level as well as their long-term experience in adult education. Furthermore, different types of countries in terms of size, industry structure, cultural and legal contexts, and ICT policies are involved. As the world has become much riskier, a focus on supply chain risk management is of utmost relevance not only for (small) companies but for societies at large.
The overall objective of the project was to develop a "Be Prepared" VET training. To reach this, three sub-objectives (intellectual outputs) were formulated: - The development of a best (good) practice report and a motivational video; - A Be Prepared "Awareness" Training Package; and - A Practical Guidance Pack. The primary target group were SMEs working in Austria, Estonia, Germany, Greece, Italy, and Portugal. Thus, the partners acknowledged on one hand the vital role of SMEs in EU economies and on the other hand the situation that SMEs typically have limited resources to address and manage the supply chain risks properly. The VET training is considered useful for young professionals as well as many of them will work in SMEs and thus they will get critical skills and competencies. Considering the situation outlined in the background section, with the implementation of the project, the partners wanted to make a contribution to developing stronger SMEs so that they are in a better position to cope with present and upcoming challenges (i.e., risks) that can result from the involvement in supply chains.
The main motivation behind the project's application was the situation that supply chains had become more connected and globalized. As a consequence also the data exchange within these supply chains has increased triggered by the advancements in Information and Communications Technology (ICT). This increased connectivity can contribute to certain benefits such as improved processes and planning but it also bears several risks such as the loss of proprietary knowledge or unintended revelation of crucial business insights to other market actors. Additionally, the increasing digital integration of supply chains bears the risk of being in the focus of cyber-attacks. The consequences of the pandemic and the invasion of Ukraine have reinforced this development. Threats such as not to know which business insights or critical knowledge can be derived from shared data and to be the target of a cyber-attack have become major concerns of companies regardless of size and type. The Allianz Risk Barometer 2020, for example, ranked cyber incidents for the first time the number one business risk. While the Allianz Risk Barometer 2022 named cyber, business interruption and natural disasters as the top three business risks globally in 2022. Similar reports showed, e.g., Hiscox Cyber Readiness Report 2019, that small and medium-sized enterprises (SMEs) have become equally vulnerable. Consequently, the partners behind this project concluded that a sound understanding of risks that can occur in supply chains is essential for developing and strengthening the digital competences of SMEs so that the decision-makers in these firms can act in confident, critical and responsible ways. In terms of the needs while taking into consideration the different countries involved in the project, the partners addressed the needs of raising awareness regarding risks associated with supply chains in SMEs. In addition, the partners developed practical tools SMEs could apply for developing or expanding their skills and comptences regarding supply chain risk management. All outputs produced in this project have a clear SME focus and thus meet the needs of the target group.