Building the Secure Supply Chain

By Andrew K. Reese

Created:

The threats may be new, but the tools and processes for ensuring your company's supply chain is secure are the same solutions you have been using to keep your goods moving efficiently through the chain.


The threats may be new, but the tools and processes for ensuring your company's supply chain is secure are the same solutions you have been using to keep your goods moving efficiently through the chain.

iSource Business June/July 2003

A Monumental Challenge









Who Pays for Security?







Security in Practice







Toward Standards







Strategies for a Secure Supply Chain











Read the Magazine article "Risky Business" for a CIO's view of supply chain security.

[SIDEBAR] New Rules of the Game



  • 24-hour Manifest Rule (24-hour Rule) — U.S. Customs rule requiring carriers to submit a cargo declaration 24 hours before cargo is laden aboard a vessel at a foreign port.

  • Automated Commercial Environment (ACE) — Update of outmoded Automated Commercial System (ACS). Intended to provide automated information system to enable the collection, processing and analysis of commercial import and export data, allowing for moving goods through the ports faster and at lower cost, as well as detection of terrorist threats.

  • Customs-Trade Partnership Against Terrorism (C-TPAT) — Private-public partnership offering supply chain security guidelines. By complying with the voluntary guidelines and submitting to inspections, importers can qualify for expedited Customs clearance for incoming goods.

  • Container Security Initiative (CSI) — U.S. Customs program to prevent global containerized cargo from being exploited by terrorists. Designed to enhance security of sea cargo container.

  • Fast and Secure Trade (FAST) — U.S. Customs program that allows importers on the U.S./Canada border to obtain expedited release for qualifying commercial shipments.

  • Smart and Secure Trade Lanes (SST) — Private initiative of the Strategic Council on Security Technology, an assembly of executives from port operators, major logistics technology providers, transportation consultancies, and former generals and public officials. Aims to enhance the safety, security and efficiency of cargo containers and their contents moving through the global supply chain into U.S. ports.

For more information on government security programs, go to www.customs.gov or www.dhs.gov.

[SIDEBAR] New Threats, Same Old Tools



  • Existing Solution: Supply Chain Process Management (SCPM)/Network Connectivity
    Application: Connectivity with trading partners; "real-time" visibility to inventory, demand; enables companies to respond to disruptions.

  • Existing Solution: Logistics Resource Management
    Application: Up-to-date intelligence on global shipping regulations; connectivity to government systems; a central repository for all shipping documentation and activity.

  • Existing Solution: Global Trade Management
    Application: Restricted party screenings; compliance with trade regulations and documentation requirements.

  • Existing Solution: RFID Tags, Wireless Networks
    Application: "Real-time" tracking of inventory, conveyances and assets; detects tampering of sealed containers.

  • Existing Solution: Network Design, Strategic Sourcing
    Application: Reconfigure supply chains and perform "what if" analyses.

Source Adrian Gonzalez, "Trade Security: A Wildcard in Supply Chain Management," ARC Strategies, September 2002. Mark W. Vigoroso, "Vessel Manifest Rule Underscores Importance of Logistics Visibility," May 5, 2003, Aberdeen Group.

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