Chapter 10: Supply Chain Security

Port security

-3D sonar to conduct routine hull and port inspection -Access Control and Container tracking devices and systems

Air cargo

-40% of the value of global trade -US and EU recognize each other's security procedures -Screen and x ray all cargo

Over the road Cargo

-Freight at rest is freight at risk common areas are truck stops, unsecured drop yards, and restaurant or shopping center parking lots -85% of all major cargo theft involves trucks ($10B) -Worst states: California, Georgia, Florida, Texas, Tennessee, New York, and Illinois

Monitor and improve security of supply chain

-Incident Management, Reporting and Investigations -Crisis Management and Disaster Recovery -Supply Chain Security Contractual Requirements for Suppliers/Business Partners -Supply Chain Security Measurement and Audit

Rail and hazardous materials

-Often carry hazardous chemicals -Must implements security plans to protect cars, tracks and bridges

Minimum security criteria

1. Choose a secure business partner 2. Container and trailer security and inspection 3. Personnel security 4. Secured procedures 5. Documentation control 6. Facility security 7. Information technology security 8. Security training and threat awareness

Strong supply chain security

1. Define potential risks 2. Determine what is needed to mitigate risk 3. Study and implement best practices 4. Audit risk mitigation process 5. Develop corrective action strategies 6. Offer risk mitigation training and remediation

Current cargo security technology

1. License plate recognition (verify trucks/open gates) 2. Geofencing (trailer moves in/out of preapproved coordinates) 3. Solar, wireless surveillance platform 4. Real time GPS locating systems 5. Hardened lock that withstands prying, cutting or impact tools 6. An integrated alarm that sends alerts when unauthorized attempts are made to access cargo 7. Knowing where the hotspots are in terms of cargo theft 8. Thieves are using duplicated container seals w 3D printing or use GPS jamming devices to overcome security efforts

CTPAT Benefits

1. Reduced number of CBP examinations 2. Front of the line inspections / Shorter wait times at the border 3. Access to the Free and Secure Trade (FAST) Lanes at the land borders 4. Business resumption priority following a natural disaster or terrorist attack 5. Access to the CTPAT web-based Portal system and training materials 6. Assignment of a supply chain security specialist to the company 7. Benefit by being recognized as a trusted trade partner by foreign customs administrations that have signed Mutual Recognition with the US 8. Eligibility for other US Government pilot programs, such as the Food and Drug Administration's Secure Supply Chain program 9. Eligibility to participate in the Importer Self-Assessment Program (ISA) 10. Priority consideration at CBP's Industry-focused Centers of Excellence and Expertise

Components of ISO 31000

1. Risk Assessment 2. Establishing and Measuring Supply Chain Security 3. Monitoring and Improving the Security of your Supply Chain

Areas of cargo security

1. Visibility 2. Validation 3. Performance 4. Risk mitigation 5. Efficiencies

ISO 31000

A management framework for building a resilient supply chain Includes an effective supply chain security program, including identifying, analyzing, and prioritizing supply chain security risks Risks from theft, product tampering, intro of contraband or weapons of terror into supply chain shipments

Customs Trade Partnership Against Terrorism (C-TPAT)

A voluntary supply chain security program led by US Customs and Border Protection (CBP) focused on improving the security of private companies' supply chains with respect to terrorism

Facility security

All cargo and storage facilities must have physical barriers and deterrents, including fencing, gates, secured parking, alarm systems, proper light, locking systems and video surveillance

Documentation control

All cargo documents must be legible and accurate. Outgoing and incoming cargo must also be verified against purchase and delivery orders, and all drivers must be positively identified

Container and trailer security and inspection

All containers and trailers require security and inspection procedures, including ensuring proper sealing, reliability of locking mechanisms and doors; and reporting and resolving unauthorized entry into containers/trailers or container/trailer storage areas

Secure business partner

All foreign manufacturers and partners must demonstrate CTPAT security criteria via written/electronic confirmation

Risk Assessment

An effective supply chain security program ensures that your company's supply chains are secure from point of origin to point of destination Most basic and important element of any supply chain security program is first ensuring you have an in-depth understanding and mapping of what your company's supply chain is Country of Origin Quantity, Value and Mode of Transportation of Shipments Historical data

Risk mitigation

Awareness and prevention of criminal activity, law enforcement engagement and assistance with recovery

Validation

Chain of custody, regulatory compliance, loss and incident forensics

Security training and threat awareness

Create a threat awareness program for employees so they can identify possible threats posed by terrorists and contraband smugglers

Information technology security

Create and implement IT security procedures and policies, such as password protection and employee training

Establish and measure supply chain security

Ensure that partners involved in your supply chain practice basic security measures to prevent unauthorized access and to fully secure your cargo from point of origin to your destination including: -Physical security and access controls -Personnel security, education, and training -Procedural security -Shipment security -IT security -Conveyance security -Sub contractor or partner selection criteria -Security monitoring of your supply chain

Cargo security

Fleets creating "positive lane and logistics" performance Five areas

Personnel security

Implement an employee identification system, as well as regular, detailed background checks for new and current employees

Efficiencies

Least cost/time/risk routing, targeted areas for supply chain improvement, carrier evaluation, shipment history and exception analytics based on the shippers' business rules

Secured procedures

Make sure security measures and procedures are in place to track and manage cargo transportation, handling and storage

Visibility

Real time cargo/asset location with environmental sensing capability for cargo integrity

Cargo Theft

Supply chain disruptions, delays and loss of goods in transit are global problems from a variety of threats -14% in Brazil -30% increase in South Africa -Daring vehicle shipment thefts in China

Performance

Transit time, estimated time of arrival, destination acknowledgment and notification

CTPAT process

When an entity joins, an agreement is made to work with CBP to protect the supply chain, identify security gaps and implements specific security measures and best practices. Applicants must address a broad range of security topics and present security profiles that list action plans to align security throughout the supply chain Members are considered to be of low risk, and are therefore less likely to be examined at a US port of entry 11,400 certified partners US importers/exporters, highway, rail and sea carriers, licensed US customs brokers, US marine port authority/terminal operators, US freight consolidators, ocean transportation intermediaries and non-operating common carriers, NAFTA manufacturers and long haul carriers