supply chain security/supply chain preparedness

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Supply Chain Security/Supply Chain Preparedness. “the single biggest threat facing American traders is supply chain security” Website for C-T PAT. Supply Chain Security. “We have proved to our management that good security is good business.” — Ann Lister of Texas Instruments. - PowerPoint PPT Presentation


  • Supply Chain Security/Supply Chain Preparednessthe single biggest threat facing American traders is supply chain securityWebsite for C-T PAT

  • Supply Chain SecurityWe have proved to our management that good security is good business. Ann Lister of Texas Instruments

  • Six vessels within a 100-mile radius of the port of New York have been waiting since at least Oct. 28, according to IHS Inc. vessel-tracking data compiled by Bloomberg News today. The tankers, also able to carry cargoes including diesel, are probably being delayed because of the storm and would normally load or unload within two days, according to Truls Dahl, a shipbroker at Astrup Fearnley A/S in Oslo.

    Nov 2, 2012

  • Supply Chain SecurityWhats the cost of 9/11 to the Supply Chain?

    Fortune Magazine - $50-80 billion a yearinefficient supply chainshigher transportation costsincreased inventory

  • Problem?Terrorism/PiracyObsolescencePilferageInformation BreachProprietary Data Camera Phones; Thumb DrivesCyberspace SecurityRFID Data Security66% of Sealift Containers arrive at 20 Major Ports>58 % of all inbound containers come through New York/New Jersey, Los Angeles, Long Beach~44% through Los Angeles/Long Beach Lengthening of Supply Chains coupled with Globalization*

  • Supply Chain Security/Disruption HeadlinesIMB identifies rash of false shipments into North AfricaPirates intensify attacks in new areas New High for PiracyRussia Sends Warship to Somali Coast to Fight Piracy Bloomberg.comUN adopts new Somalia piracy resolution

  • **Supply Chain HeadlinesNew Budget includes $10.2 Billion for Border Security.Major Data Theft Leads to Major Legal Problems Baseline MagazinePolo Ralph Lauren Lost Point of Sale Data

  • ExamplesMajor Distributor, Dec 2006Locks on trucksSecurity and Accountability for Every Port Act - SAFE Port Initiative Scanning of ContainersC-TPAT

    Threats in the international market-place know no borders.

  • IMB Piracy Reporting Centre in 2012 Worldwide Incidents: updated on 27 Oct 2012 Total Attacks Worldwide: 252 Total Hijackings Worldwide: 26 Incidents Reported for Somalia: Total Incidents: 71 Total Hijackings:13 Total Hostages: 212 Current vessels held by Somali pirates: Vessels: 9 Hostages: 154.

  • Jakarta Anchorage

    Type of Attack : Boarded


    03.11.2012: 2100 LT: Posn: 06:00.4S - 106:54.6E, Jakarta Anchorage, Indonesia. Four robbers in a small boat approached the stern of an anchored container ship. One robber boarded the ship using a hook attached with rope while the other three robbers remained in their boat. Deck watchmen spotted the robber and raised the alarm. Seeing crew alertness the robber escaped empty handed.

  • Risk Supply Chains are inherently complex, dynamic, and fluid, characterized by uncertainty, ambiguity, and friction. These characteristics cloud the operating environment: they create risks

  • Risk AssessmentTerrorismTheftPort Security over 14 million containers annually to the US; ~500 million world widePort Security 300 US PortsLongshoremen Strike 2002/potential strike 2012Potential Airport Attack LAX; MPS; LGAPotential loss of attack to major port - $20 billion estimate

  • Problems?66% of Sealift Containers arrive at 20 Major Ports>58 % of all inbound containers come through New York/New Jersey, Los Angeles, Long Beach~44% through Los Angeles/Long Beach Lengthening of Supply Chains coupled with Globalization

  • New Problem?There were no secure rear areas. General Joseph Heiser on Vietnam LogisticsSun Tzu Chapter 1, The Art of WarNative AmericansAmerican Civil War Great Train ChasePirates of the Caribbean

  • Supply Chain SecurityA Global Perspective

  • Top 5 European PortsRotterdam 9.743 million TEUs in 2009Hamburg 7.088 million TEUs (9.7 mil in 2008)Antwerp 7.3 million TEUs (8.6 in 2008)Bremen 4.565 million TEUs (5.5 in 2008)Valencia 3.65 million (3.6 in 2008)

  • Other Key PortsSingapore 25.87 million TEUsShanghai 25 millionHong Kong 20.9 million Shenzhen 18.25 millionPusan 11.98 million

  • SAFE Port ActThe SAFE Port Act codified into law a number of programs to improve security of U.S. ports, such as:Additional requirements for maritime facilities Creation of the Transportation Worker Identification CredentialsEstablishment of interagency operational centers for port security

  • Safe Port ActContainer Security InitiativeForeign port assessments Customs Trade Partnership Against Terrorism

  • Container Security InitiativeCSI consists of four core elements:Using intelligence and automated information to identify and target containers that pose a risk for terrorism. Pre-screening those containers that pose a risk at the port of departure before they arrive at U.S. ports. Using detection technology (X-Rays) to quickly pre-screen containers that pose a risk. Using smarter, tamper-evident containers.

  • Containers - ConcernsCost to X-Ray containers ManpowerDelaysRadiation

  • C-TPATVoluntaryNovember 2001> 10,000 members~50% of all imports Mutual Recognition Agreements New Zealand, Korea, JapanCanada has a program very similar to C-TPAT named FAST Free and Secure Trade.

  • Orlando International AirportNo staffing of doors for employee entrance to baggage claim areasGuns smuggled into planes by employeesno requirement for us to staff those doors OIA Spokesperson; TSA not my job!Identified as security issues in 20042006 of TSA Screeners failed test that measured how well employees could identify explosives, guns and other weapons on the scanner but can identify bottles of mouthwash and toothpasteSource: Mike Thomas, Orlando Sentinel, Mar 15, 2007, p. B-1

  • Food SecuritySalmonella

  • BioTerrorism?Dole Foods recall April 2012Peter Pan Peanut Butter e coli 2007E-coli from fresh Spinach 2006Chi Chis e-coli from green onions 2003Taco Bell e coli 2005None were terrorist attacks but impacted supply chainsUS Salmonella/e-coli scare 2008Salmonella epidemic 2009 - >3921 separate items recalled

  • SummaryDirect link between supply chain security and homeland securityLogistics costs are large part of manufacturing costsSavings in supply chain costs to bottom lineSupply chains need to be prepared for man-made and natural disruptions


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