Pharmaceutical Anti-Counterfeiting Amsterdam 16th & 17th February 2011

Using The Supply Chain To Maintain Product Integrity

What will we look at today?

• How the choice of transport mode affects security

• How the choice of transport provider affects the security of supply

• What safeguards already exist in the supply chain

• What are the weak points and how can these be overcome

How does the mode of transport affect security?

• Mode of transport determines how many parties physically handle the product

• Mode of transport determines how many parties receive information about the product

• More hand off points for product and date equals a higher security risk

What is the difference between the modes?

• AIRFREIGHT • Multiple parties involved• Often a low wage environment• Regular trans-shipment

• OCEANFREIGHT• Few parties involved• Can be loaded & sealed at your

own site• Stays sealed until destination• Negotiable documentation

• TRUCKFREIGHT• Inconsistent equipment quality

How does the choice of provider affect security?

• How secure is the provider• Are they part of a Government

cargo security regime (eg Known Shipper in US)

• Do they have a security policy• Are all staff vetted for criminal

records • Are all staff required to provide full

employment history (minimum 5 years)

• Do they have security procedures in place at their own premises eg

• Controlled access• Monitored access• Alarms• Security Patrols• CCTV

How does the choice of provider affect security?

• What equipment do they have• Curtain-sided or rigid vehicles• Sealable trucks• Tamper-evident entry

• Do they use sub-contractors• Are the sub-contractors subject to

the same security policies• Do they have an approved sub-

contractor list• Do they have equipment of a

suitable standard

What safeguards already exist?

• AIRFREIGHT• High security due to terrorist

threat• All freight is checked• All intermediaries meet security

requirements• Intense documentary checks• Enhanced Customs activity

• OCEANFREIGHT• Containers sealed at loading point

and seal only broken at delivery location

• En route seal checks• Little or no human access to

containers• High level of Customs activity• Negotiable document makes it

very difficult for fraudsters to steal your product

What safeguards already exist?

• TRUCKFREIGHT• Rigid trucks can be sealed• Some Customs activity• Safe truck parks are available

What are the weak points and how can they be overcome?

• AIRFREIGHT• Multiple hand offs

• Use a sealed unit such as the pod pictured below

• Use airlines with direct services rather than connecting flights

• Tell your freight forwarder which airline you want them to use

• Book your shipment as a non-consolidated shipment

What are the weak points and how can they be overcome?

• OCEANFREIGHT• Container Seals

• Load and seal the container at your premises

• Use bolt seals rather than plastic ones

• Check seal numbers prior to unloading container

• Fully investigate seal number discrepancies

What are the weak points and how can they be overcome?

• TRUCKFREIGHT• Variable Equipment

• Agree with provider what types of equipment are acceptable

• Turn away unsuitable trucks• Do this even if you are not

paying for transport – they are still your products!

• Route Selection• Agree routes with your provider• Ensure drivers use secure truck

parks – seek evidence of this

What are the weak points and how can they be overcome?

• TRUCKFREIGHT• Minimal Customs / Documentary

Checks • Use providers with full track

and trace capability• Avoid non-specialist groupage

services• Check trailer numbers noted on

CMR (international transport delivery note)

Thank you!