Taking the high road to C-TPAT (page 4)

-- Logistics Management, 9/1/2005

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Security programs are rapidly evolving, and both Carrier Mexico and its supply chain partners have given much thought to future developments. For example, Carrier's customers have not yet made C-TPAT membership a condition of doing business, but Rodarte expects that eventually they will.

Garrick Taylor, director of policy development for the Border Trade Alliance, a non-profit organization that addresses North American trade issues, foresees higher expectations by both CBP and C-TPAT members. "Companies will want to see more tangible benefits in the form of FAST lanes," he says. "In turn, CBP's requirements are growing—look at the new minimum security requirements announced in March. I think you'll continue to see give and take."

It may prove difficult, though, for CBP to raise the C-TPAT bar when the agency appears to be struggling to keep up with the demands of the program. Dan Hastings believes the agency is hard-pressed on that front. "My company was C-TPAT certified in February of 2003, and we haven't been verified yet," he notes. (Verification is the final approval stage.)

So what happens if Homeland Security puts out a red alert before Carrier Mexico achieves C-TPAT membership? Rodarte has had a plan in place for a while. He recently held a "Southern Border Summit" attended by logistics, security, and customs compliance officials from Carrier Corp.; Dan Hastings; and representatives of Carrier Mexico's trucking and third-party logistics providers. The group met for three days to discuss the best ways to keep supply lines flowing.

Flexibility and quick reaction to changing circumstances will be critical if Carrier Mexico is to continue to meet customers' delivery requirements. "If there's a catastrophic event at a port, that port will be shut down—not the entire southern border," explains Hastings. Thus, if Laredo becomes bottlenecked, the shipper will divert goods to other nearby crossing points.

Rodarte believes that his company's reputation will also be important in facilitating shipments in time of emergency. "Carrier has a good name with CBP," he says. "They know we're a company that's not going to be doing things we shouldn't." And he wants to make sure that it's clear to everyone, both within and outside the company, that Carrier is deeply committed to security compliance. "We want to be viewed as a company that has fully implemented and really lives C-TPAT," he says. "We want to be a role model for other Mexican manufacturers."

Editor's Note: For more information about BASC, go to www.wbasco.org. Complete details about C-TPAT are available at www.cbp.gov.

Author Information

Veteran business journalist John Kerr writes frequently on international logistics and supply chain strategies.

Carrier's Road to C-TPAT, BASC Certification

Carrier Mexico, a subsidiary of Carrier Corp., is taking a number of steps to become a member of C-TPAT, the Customs-Trade Partnership Against Terrorism. Here's the company's game plan:

Earn certification by the Business Anti-Smuggling Coalition (BASC), an industry group that helps shippers prevent their cargo from being stolen or used for drug smuggling.
Apply ISO 9000 quality principles to cargo security measures
Assign full- and part-time staff to manage cargo security
Design new facilities with cargo security in mind
Work closely with its motor carriers, third-party logistics company, and customs broker, as well as customs authorities on both sides of the border to ensure security is maintained from factory to final delivery.
To become a member of BASC, Carrier Mexico is following these steps:
Join BASC affiliate; receive training materials and communicate BASC plan internally
Carry out pre-audits with self-administered gap analysis, then undergo pre-audit by BASC inspectors
Ensure compliance with all necessary standards and completion of gaps identified in BASC pre-audit
Undergo formal BASC audit
Apply for certification (assuming the audit is passed) with a letter to BASC confirming commitment to live by the principles of the organization

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