Supply%20Chain%20Security/Supply%20Chain%20Preparedness

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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
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Supply Chain Security

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

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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
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Supply Chain Security

• Whats the cost of 9/11 to the Supply Chain?
• Fortune Magazine - 50-80 billion a year
• inefficient supply chains
• higher transportation costs
• increased inventory

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Problem?

• Terrorism/Piracy
• Obsolescence
• Pilferage
• Information Breach
• Proprietary Data Camera Phones Thumb Drives
• Cyberspace Security
• RFID Data Security
• 66 of Sealift Containers arrive at 20 Major
  Ports
• gt58 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

7/18/2019
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Supply Chain Security/Disruption Headlines

• IMB identifies rash of false shipments into North
  Africa
• Pirates intensify attacks in new areas
• New High for Piracy
• Russia Sends Warship to Somali Coast to Fight
  Piracy Bloomberg.com
• UN adopts new Somalia piracy resolution

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Supply Chain Headlines

• New Budget includes 10.2 Billion for Border
  Security.
• Major Data Theft Leads to Major Legal Problems
  Baseline Magazine
• Polo Ralph Lauren Lost Point of Sale Data

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Examples

• Major Distributor, Dec 2006
• Locks on trucks
• Security and Accountability for Every Port Act -
  SAFE Port Initiative
• Scanning of Containers
• C-TPAT

Threats in the international market-place know no
borders.
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IMB Piracy Reporting Centre in 2012 Worldwide
Incidents updated on 27 Oct 2012Total Attacks
Worldwide 252Total Hijackings Worldwide
26 Incidents Reported for SomaliaTotal
Incidents 71Total Hijackings13Total Hostages
212 Current vessels held by Somali pirates
Vessels 9 Hostages 154.
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Jakarta Anchorage Type of Attack
Boarded Narrations 03.11.2012 2100 LT
Posn 0600.4S - 10654.6E, 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.
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Risk

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

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Risk Assessment

• Terrorism
• Theft
• Port Security over 14 million containers
  annually to the US 500 million world wide
• Port Security 300 US Ports
• Longshoremen Strike 2002/potential strike 2012
• Potential Airport Attack LAX MPS LGA
• Potential loss of attack to major port - 20
  billion estimate

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Problems?

• 66 of Sealift Containers arrive at 20 Major
  Ports
• gt58 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

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New Problem?

• There were no secure rear areas. General
  Joseph Heiser on Vietnam Logistics
• Sun Tzu Chapter 1, The Art of War
• Native Americans
• American Civil War Great Train Chase
• Pirates of the Caribbean

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Supply Chain Security

• A Global Perspective

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Top 5 European Ports

• Rotterdam 9.743 million TEUs in 2009
• Hamburg 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)

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Other Key Ports

• Singapore 25.87 million TEUs
• Shanghai 25 million
• Hong Kong 20.9 million
• Shenzhen 18.25 million
• Pusan 11.98 million

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SAFE Port Act

• The 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 Credentials
• Establishment of interagency operational centers
  for port security

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Safe Port Act

• Container Security Initiative
• Foreign port assessments
• Customs Trade Partnership Against Terrorism

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Container Security Initiative

• CSI 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.

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Containers - Concerns

• Cost to X-Ray containers
• Manpower
• Delays
• Radiation

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C-TPAT

• Voluntary
• November 2001
• gt 10,000 members
• 50 of all imports
• Mutual Recognition Agreements New Zealand,
  Korea, Japan
• Canada has a program very similar to C-TPAT named
  FAST Free and Secure Trade.

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Orlando International Airport

• No staffing of doors for employee entrance to
  baggage claim areas
• Guns smuggled into planes by employees
• no requirement for us to staff those doors OIA
  Spokesperson TSA not my job!
• Identified as security issues in 2004
• 2006 ½ 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
  toothpaste

Source Mike Thomas, Orlando Sentinel, Mar 15,
2007, p. B-1
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Food Security
Salmonella
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BioTerrorism?

• Dole Foods recall April 2012
• Peter Pan Peanut Butter e coli 2007
• E-coli from fresh Spinach 2006
• Chi Chis e-coli from green onions 2003
• Taco Bell e coli 2005
• None were terrorist attacks but impacted supply
  chains
• US Salmonella/e-coli scare 2008
• Salmonella epidemic 2009 - gt3921 separate items
  recalled

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Summary

• Direct link between supply chain security and
  homeland security
• Logistics costs are large part of manufacturing
  costs
• Savings in supply chain costs to bottom line
• Supply chains need to be prepared for man-made
  and natural disruptions