• Mr. ByteChek

What is SOC for Supply Chain?

Updated: Mar 22


Today’s supply chains are highly sophisticated and complex due to globalization, global interconnectivity, automation, and other technological advancements over the last few years. Supply chain innovation is growing rapidly. Bessemer Venture Partners predicts that “the supply chain software market will expand to north of $100 billion of SaaS revenue, primarily driven by the emergence of entirely new software categories and products that address the unmet needs of supply chain professionals.”

In 2020, the American Institute of Certified Public Accountants (AICPA) noticed the growth in the supply chain market and developed a new Supply Chain Risk Management Reporting Framework. This new framework, SOC for Supply Chain, was designed to provide supply chain risk readiness and for organizations to communicate certain information about their manufacturing, production, or distribution system and the effectiveness of controls that mitigate supply chain risks. In this post, we’ll define what SOC for Supply Chain is, how companies should use this framework today and tips to get started on with SOC for Supply Chain in your company.

What is SOC for Supply Chain?

SOC for Supply Chain is an AICPA developed framework for reporting on the controls over manufacturing, production, or distribution systems. Supply chain companies can use the reporting framework to communicate to stakeholders the processes and controls they have in place to detect, prevent, and respond to supply chain risks that may impact companies meeting their objectives.

A SOC for supply chain report includes three bodies of information that provide transparency around how supply chain companies manage and control risk. These sections will look similar to those familiar with SOC 2 or other SOC Suite of Services reports:

  • Management’s description

  • Management’s assertion

  • Auditor’s opinion

Why is SOC for Supply Chain Important?

With the increase in innovation in the supply chain industry, companies need a better way to prove how they are managing supply chain risk. This new reporting framework provides the ability for companies to communicate controls related to the Security, Availability, Processing Integrity, Confidentiality, or Privacy in a Production, Manufacturing, or Distribution System. Because the SOC for Supply Chain report includes a detailed description of the system including the principal product performance specifications, commitments, and requirements and production, manufacturing, or distribution commitments and requirements, this report is more valuable to entities in the supply chain ecosystem.

Supply chain companies can use this report as a competitive advantage by providing a layer of transparency into supply chain risks that is not found in reports like ISO 27001 or SOC 2. The global pandemic increased the number of organizations and individuals that were impacted by supply chain disruption. The continued investment in supply chain technology means there will be new companies added into the ecosystem of providers adding risk to a process that is dependent on a collection of companies. We’ve learned how COVID-19 disrupted the supply chain and how important it is to prepare for events that could lead to similar disruptions. The SOC for Supply Chain report provides an easy way for companies to provide insight into how they are mitigating risks that could affect the ability of supply chain entities to meet their commitments.


The pandemic accelerated and brought to light supply chain issues that can create risks. Supply chain software solutions are needed to accelerate innovation and help an industry that desperately needs technology. The SOC for Supply Chain report provides an opportunity for companies to evaluate how risks may impact their ability to deliver goods or services. If you’re in the supply chain industry, you should constantly look for ways to transparently communicate how your mitigating risks and the SOC for Supply Chain report is a way to do that.

Check out ByteChek’s SOC for Supply Chain offering, the only automated compliance platform helping companies earn SOC for Supply Chain reports.