Fine-tuning your security strategy
Few corporations fully understand all of the risk management assistance that’s now available. To make this task a little easier, our customs expert offers a brief update of emerging technology, organizations, and best practices that every security-minded supply chain professional should know.
By Suzanne Richer, Customs & Trade Solutions Inc. -- Logistics Management, 11/1/2009
The evolution of cargo security standards within international supply chains has brought with it the development of many best practices programs. The United States is leading the way with its Customs-Trade Partnership against Terrorism (C-TPAT) program, while other countries around the world are now joining in with similar initiatives such as the European Authorized Economic Operator (AEO) and Canada’s Free and Secure Trade (FAST).
In all cases, these programs seek to provide guidelines on the protection of freight as it moves from one country to another. But at the same time, these programs must strike a balance between commerce and the flow of goods and the need for stronger security measures that inevitably slow that process.
Participants, particularly shippers, receive benefits that improve the flow of commerce upon arrival at a U.S. port. In many cases, it moves them to the head of the line for both clearance and exam requirements. Service providers benefit from the marketing advantage of participating in security initiatives, as it improves their ability to support the shipper through customs and creates more of a business partnership.
Maintaining cargo security programs remains a challenge for most firms as the guidelines require the input of many departments within the firm—from HR and IT to supply chain and security personnel. This challenge is enhanced during economic strife, as resources are scarce and the benefits of updating the program are not seen as immediately affecting the bottom line.
Furthermore, immediate attention is being levied on the pending implementation of ISF—or 10+2 data elements—which requires time and money, leaving the maintenance of cargo security programs at a disadvantage. However, for firms developing or maintaining a cargo security program, knowing where to turn for the latest resources to support a strong security base is now absolutely critical.
It’s no secret that exploring the new technology and software available today requires time for research and follow-through, yet few corporations break the mold by offering support to key concerns within their own organizations to fully understand all that’s available. To make this task a little easier, here’s a brief update on some of the emerging technology, organizations, and best practices that every security-minded supply chain professional should know.
Risk management and ISF resources
New developments in technology have sought to decrease the effort needed to maintain and monitor international supply chains. One program shippers should become aware of is C-TPAT Connection Inc., a group that offers assistance in both securing the supply chain while collecting the much needed data for 10+2 or ISF filing.
C-TPAT Connection Inc. offers corporations the ability to collect supply chain security data on business partners worldwide and give shippers an immediate feedback mechanism regarding their “risk” as a business partner for meeting C-TPAT and FAST guidelines. The difference between this program and related programs is its ability to capture data in six different languages, making worldwide partners more capable of providing information and remaining engaged for long-term security improvements.
In short, this group allows participants to email questionnaires to their business partners around the world. Responses are translated back into the sender’s language and an immediate risk assessment is provided, mirroring the Customs and Border Protection (CBP) color security rating now in effect in the United States. In addition, the program captures ISF filing data and allows users to download the information into spreadsheets for sharing with ISF filers (www.c-tpatconnection.com).
Anti-piracy protection
For companies moving product in international waters preyed upon by pirates, the newly introduced SEAL Security Solutions, a Houston-based firm managed by a team of former marines, logistics professionals, and former military personnel, offers corporations cost-effective programs to prevent merchandise from being stolen in route.
SEAL has formed an alliance with the Sharaf Shipping Agency, a Dubai-based group that specializes in arranging for the movement of supplies to and from vessels. Together, these two firms provide vessel owners and shippers a highly trained security team comprised of people and assault dogs to provide around-the-clock observation with advanced optics and technology. With a 24/7 patrol team on deck and a tactical leader with radio communication, they aim to prevent pirates from boarding a vessel.
These security teams are available at strategic ports in areas of high piracy. With ransom of up to $3.4 million paid per vessel, and the cost of insurance in these areas skyrocketing or even unavailable, this service provides a cost effective way to ship through these areas of concern. Furthermore, it provides peace of mind to ship workers whose lives are at risk in these situations.
RFID update
For firms focused on security issues tied to tracking and tracing product, the updated electronic seal, also known as an “e-seal”, provides the technology required to monitor shipments from origin to destination.
Regulations in some industries require a traceability element, especially in the food and pharmaceutical industries. Using RFID capabilities, shippers will not only be able to track the shipment, but they’ll also be notified when the security of the cargo has been breached.
The U.S. Department of Defense will soon be using RFID tags, having recently purchased $6.6 million in RFID products from Savi Technology, a unit of Lockheed Martin. Savi is a founding member of the DASH7Alliance, a broad coalition of technology developers, manufacturers, test laboratories, and government organizations whose goal is to expand the commercial use of wireless sensor networks.
Look for RFID technology to soon be implemented in Munich International Airport, as the Wi-Fi RFID and GSP capabilities will be united via a tag that will be affixed to all passenger baggage dollies. This technology will allow the airport to begin monitoring its assets—and ensure that it’s charged cargo companies appropriately for their use.
Best practices
While the advances in technology will outline an easier path for monitoring security breaches, cargo security best practices still require a strong foundation of fundamental programs.
Developing and maintaining the minimum standards of C-TPAT means a corporation must first focus on threat awareness and then identify and prioritize the vulnerabilities in its supply chain. From there, it’s essential to develop a multidisciplinary team that’s focused on cargo security standards and trained to work together to target and reduce risk.
These are two basic steps a corporation should take before embarking on additional enhancements in supply chain security. At that stage, the need to embrace a continuous cargo security improvement plan is critical, as these programs tend to remain stagnant when they don’t produce results or boost the bottom line.
From a government-to-government point of view, this means developing true global standards that are capable of thwarting terrorist threats and adaptable by all corporations internationally. Customs agencies worldwide must be aligned for greater sharing of data and resources and develop a more trustworthy approach to confidentiality that will encourage greater participation in government-to-business programs.
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