Monday 23 March 2015

Supply Chain Security “SECURITY”



What do you do if you are on a less than truckload shipping route and the carrier shows up with load of illicit contraband on the truck?

What do you do if your inbound shipment is stolen after it just arrived at the terminal and in route to its destination?

What do you do if your shipment arrives at your location and the seal is broken and it was not cut by customs or the carrier?

The answer to these question is nothing (in a sense), unless, you’re in a supply chain security program. In most of the aforementioned examples common sense would prevail and someone may contact law enforcement. However, there is a laundry list of people that need to be contacted and not just the shipper or insurance company.

Even if your organization is not in a government sponsored supply chain security program ie: Customs Trade Partnership Against Terrorism (C-TPAT), Authorized Economic Operator (AEO), Nuevo Esquema de Empresas Certificadas (NEEC) or Partners in Protection (PIP) you are still a part of the Global Supply Chain and therefore have a responsibility to protect it.

A supply chain is a system of organizations, people, activities, information, and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials, and components into a finished product that is delivered to the end customer. In sophisticated supply chain systems, used products may re-enter the supply chain at any point where residual value is recyclable. - Wikipedia

At some point is the manufacturing, production and delivery of your wears you need to imagine the hundreds of people involved and fleets of vehicles land, sea and air that are used to get you what you need.

The Customs-Trade Partnership Against Terrorism (C-TPAT) is a voluntary supply chain security program led by U.S. Customs and Border Protection (CBP) and focused on improving the security of private companies' supply chains with respect to terrorism. The program was launched in November 2001 with seven initial participants, all large U.S. companies. As of December 1, 2014, the program has 10,854 members.[1] The 4,315 importers in the program account for approximately 54% of the value of all merchandise imported into the U.S.

Companies who achieve C-TPAT certification must have a documented process for determining and alleviating risk throughout their international supply chain. This allows companies to be considered low risk, resulting in expedited processing of their cargo, including fewer Customs examinations. - Wikipedia

In today’s global economy we rely on each other to be a good corporate citizens to protect and preserve our way of life. Nine out of ten your wears were brought to you by someone in a Supply Chain Security program. Ultimately that someone is responsible and playing an active role in the war against terrorism. It also means that this person reaps the benefits of said program. Reduced number of inspections at the borders , priority processing (front-of-line) for US Customs and Border Protection (CBP)inspections and a several other benefits.

However, in return the CBP expects you to do your part and what does that mean. Simply stated CPB accepts you as a secure “vendor” of sorts but they want you to be sure those you do business with are also secure. CBP will have you conduct a risk assessment of your supply chain and have you advise those to either join a program or become compliant.

Wherever you are in the Global Supply Chain you have a clear responsibility. It does not take much to figure out if you should have some sort of program. Unless your wares are brought to you by one person down the street and they make from beginning to end in there facility with no outside assistance, then consider developing a program.

Remember the questions the correct answer would be:

  • Conduct or have someone conduct a risk assessment of your supply chain
  • Conduct or have someone conduct a risk assessment of you and your facility
  • Develop proper polices and procedure and enforce them
  • Train your employees in supply chain security

No comments:

Post a Comment