The impact of implementing CSI and C-TPAT security initiatives on Supply Chain : Adding Value to the Supply Chain

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<ul><li> 1. The impacts ofCSI and C-TPAT security initiatives on supply chain: Adding value to the supply chain Presented By: Ziyad Alharbi 3 rdyear undergraduate student</li></ul> <p> 2. Overview </p> <ul><li>Maritime security background </li></ul> <ul><li>Container security initiative (CSI) </li></ul> <ul><li>US Customs-Trade Partnership against Terrorism (C-TPAT )</li></ul> <ul><li>Impact of CSI and C-TPAT on Supply Chain Management</li></ul> <ul><li>Security adds value to the supply chain</li></ul> <ul><li>Conclusion </li></ul> <p> 3. Maritime security background </p> <ul><li>Many factors could raise the awareness of security threats in the maritime supply chain: </li></ul> <ul><li><ul><li>O pen nature nationally and globally </li></ul></li></ul> <ul><li><ul><li>Complexity </li></ul></li></ul> <ul><li><ul><li>Important forglobal trade</li></ul></li></ul> <p> 4. Container Security Initiative (CSI) </p> <ul><li>Strategic program developed by</li></ul> <ul><li>US Customs after the events of</li></ul> <ul><li>September 11, 2001</li></ul> <ul><li>24 hour rule </li></ul> <ul><li><ul><li>requires ocean container carriers to send a manifest to US Customs authorities that includes detailed information about container cargo at least 24 hours prior departure from foreign ports.</li></ul></li></ul> <ul><li><ul><li>requires containers bound to US to be scanned 24h prior loading onboard vessel </li></ul></li></ul> <p> 5. USCustoms-Trade Partnership against Terrorism (C-TPAT) </p> <ul><li>Objective: </li></ul> <ul><li>For businesses participating</li></ul> <ul><li>in the supply chain to partner</li></ul> <ul><li>with U.S Customs in order to </li></ul> <ul><li>improve security throughout</li></ul> <ul><li>the supply chain and to ensure</li></ul> <ul><li>container integrity all the way</li></ul> <ul><li>to the origin of shipper</li></ul> <p> 6. Scope of IMO and US Maritime Security Initiatives across a Supply Chain 7. Impact on supply chain(Efficiency) </p> <ul><li>Negative</li></ul> <ul><li><ul><li>Delays and congestion </li></ul></li></ul> <ul><li><ul><li>Increased transit time </li></ul></li></ul> <ul><li><ul><li>Higher inventory levels </li></ul></li></ul> <ul><li><ul><li>Higher transportation costs </li></ul></li></ul> <p> 8. Efficiency (cont) </p> <ul><li>Positive </li></ul> <ul><li><ul><li>Early reporting </li></ul></li></ul> <ul><li><ul><li>Reduced time to resolve documentation issue </li></ul></li></ul> <ul><li><ul><li>Time sensitive operations </li></ul></li></ul> <ul><li><ul><li>Cargo availability </li></ul></li></ul> <p> 9. Impact on supply chain(cost) </p> <ul><li>Negative </li></ul> <ul><li><ul><li>High technological investments </li></ul></li></ul> <ul><li><ul><li>Expertise and manpower </li></ul></li></ul> <ul><li>Positive </li></ul> <ul><li><ul><li>Accurate info exchange </li></ul></li></ul> <ul><li><ul><li>Early reporting </li></ul></li></ul> <ul><li><ul><li>Increase service and documentation reliability </li></ul></li></ul> <ul><li><ul><li>Reduced errors and service variability</li></ul></li></ul> <ul><li><ul><li>Avoid compensation cost (Damage and accidents) </li></ul></li></ul> <p> 10. Impact on supply chain(Management) </p> <ul><li>Negative </li></ul> <ul><li><ul><li>Costs</li></ul></li></ul> <ul><li><ul><li>Increase prices of services provided </li></ul></li></ul> <ul><li><ul><li>Challenge for small and medium sized firms </li></ul></li></ul> <ul><li><ul><li>Complex networks &amp; relationships </li></ul></li></ul> <ul><li>Positive </li></ul> <ul><li><ul><li>Increased collaboration</li></ul></li></ul> <ul><li><ul><li>Facilitate trade &amp; attract shippers </li></ul></li></ul> <p> 11. Adding Value to supply chain </p> <ul><li>Information sharing and technology </li></ul> <ul><li><ul><li>Better shipment visibility </li></ul></li></ul> <ul><li><ul><li>Better understanding of customers wants and need </li></ul></li></ul> <ul><li><ul><li>Reduced order cycle time </li></ul></li></ul> <ul><li><ul><li>Reduced error </li></ul></li></ul> <ul><li>Collaboration and integrity </li></ul> <ul><li><ul><li>Share information and risk, </li></ul></li></ul> <ul><li><ul><li>Eliminate excess inventories</li></ul></li></ul> <ul><li><ul><li>Reduce lead times and uncertainty</li></ul></li></ul> <ul><li>Improved SQ &amp;customer value </li></ul> <p> 12. Adding Value to supply chain (Cont) </p> <ul><li>Improved performance and enhanced service quality </li></ul> <ul><li><ul><li>Through encouraging time sensitive &amp;</li></ul></li></ul> <ul><li><ul><li>efficient operations</li></ul></li></ul> <ul><li>Harmonized and secure trade </li></ul> <ul><li><ul><li>Security along the entire supply chain </li></ul></li></ul> <ul><li><ul><li>e.g. T he events of September 11, 2001 resulted in significant financial impact on US supply chains estimated at USD 150 billion a year due to increased inventories, filled warehouses, border closures, increased lead times </li></ul></li></ul> <p> 13. Conclusion </p> <ul><li>Compliance with CSI and C-TPAT requirements may affect supply chain performance positively and negatively </li></ul> <ul><li>Players in the supply chain should consider effective security management in order to benefit from security initiatives as much as possible and reduce its negative impact</li></ul> <ul><li>CSI and C-TPAT can play a critical role in adding value in the supply chain through facilitating information sharing, technology, integrity and collaboration as well as enhanced efficiency and harmonized trade</li></ul> <p> 14. THANK YOU ANY QUESTIONS?</p>

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