Secure global supply chains

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Secure global supply chains

• Dr Albert Veenstra
• Decision and information sciences
• RSM Erasmus University
• IAME 12-14 july 2006

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Background

• Security influences worldwide supply chains
• 9/11
• Madrid, London
• Security growing political issue
• Container Security Initiative, CSI, 24h Manifest
  Rule
• Customs Trade Partnership Against Terrorism,
  C-TPAT
• Containerscans, radiation detection gates
• Security measures so far focused on transport
  system
• Ships, Terminals, Ports, ...

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Starting point

• Towards reliable and secure global supply chains
• ? There has to be a win-win in striving for
  security with business efficiency gains

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• International developments

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Developments

• World Customs Organisation Framework of
  standards to secure and facilitate global trade
• US C-TPAT, CSI, 24hr rule,
• Security requirements for imports in many other
  countries (Frontline, PIP, SEP, FAST, BASC,
  Stairsec, )
• EU Authorized economic operator, regulation on
  enhancing supply chain security

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Developments
In China Red list/ black list Anti-corruption
policy Anti-overloading policy

• Netherlands safe entrepreneurship, platform
  vehicle crime, intelligence agenda,
  implementation of regulation
• Technology providers Savi networks, GE, Siemens,
  Philips, IBM, Zoca, . (RFID, seals, locks, smart
  box, anti-tampering devices, cameras, scanners,
  )
• International pilots

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Developments

• ISO RFID standards (433 MHz)
• ISO 28000/28001
• CEN security standard
• TAPA security standards (FSR, TSR)
• C-TPAT certification
• AEO screening
• Information system security

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Results on Security Measure Popularity
Source Gutierrez X., Hintsa J. (2006). Voluntary
Supply Chain Security Programs A Systematic
Comparison. ILS 2006. The International
Conference on Information Systems, Logistics and
Supply Chain. Lyon, France. May 15-17, 2006.
(submitted, under review)
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• Opinion pole among shippers and logistics service
  providers

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Terrorism what is the extent of the following
occurrences on your company
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Crime what is the extent of the following
occurrences on your company
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Summary

• Ports, airports, transportation by road are seen
  as major weak spots
• Much of the industry initiatives focus(ed) on
  transportation and ports

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• Secure supply chain strategy

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Visibility in the chain
Receiver
Bonded warehouse Europe
Inland shipping terminal
Producer
Port China
Port Europe
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Issues

• Who will facilitate information flow?
• What kind of information is useful for security
  purposes?
• What is the special role of transport operators
  and ports?

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Example Savi Technology? SST
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The Technology RFID Tag

• information gtgt barcode
• sender activated
• size lt pinhead
• cost few cents

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ISO Standards

• ISO 10374 Permanent Container Tag
• ISO 17363 e-Seal Supply Chain Tag
• ISO 18185 e-Seal Shipping-Line Tag

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Port of Hong Kong
Radiation portal monitor
Optical character recognition
(Vacis is the brand name)
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Evaluation

• 100 scanning is the future (US is contemplating
  to make this mandatory, and in some industries,
  it already is common)
• Customs exchange of information is promoted by
  WCO.
• Technical standards are not satisfactory yet
• Main interest for terminal ops and shipping lines
  is in commercial use of the information

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Example Port Infolink
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Port infolink
Port infolink Information exchange platform
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Datamining

• Port Infolink is the single entry platform for
  customs declaration for cargo coming in by sea

Suspect containers
Import declaration Sagitta Binnenbrengen
Selector/ expert
Intelligent selection system
administrative handling
Remainder
Intelligence Rules ? Analysis ?
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Port Infolink

• Platform for new data gathering
• Tracking and tracing technology
• Scanning
• Image recognition
• Dissemination of different types of data
• Document corrections
• Late data entry
• Incomplete declarations
• Partnering information
• Previous partners
• Partner status
• Additional applications of datamining

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Example Port of Rotterdam

• What is the involvement of the Port of Rotterdam
  in international container security?

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Security Policy Port of Rotterdam
Supply Chain Security
NL VITAL project Identifying critical
infrastructure objects in the port ? ISPS approach
Port security (EU directive)
Ships and terminals (ISPS)
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Security Policy Port of Rotterdam

• Does the Port of Rotterdam have a role in supply
  chain security?
• Veenstra van Nunen (2005) The port does not
  have to be secure, as long as the cargo flowing
  through it are secure
• And
• The port should facilitate whatever security
  level is required by the port users

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Port of Rotterdam
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Port of Rotterdam
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Port of Rotterdam
2nd maasvlakte Central Gate concept should the
area have single secure entry gate or not?
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Port of Rotterdam

• For the moment PoR central gate concept
• Reason lets not bother the tendering companies
  at Maasvlakte II with complications
• But Securitas has a contract to jointly secure
  ECT, Customs, power station, Lyondell, EMO,
  (end of 2005) on Maasvlakte I

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Port of Rotterdam
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Port of Rotterdam

• Dilemma
• ECT and Savi want RFID readers in all cranes, as
  well as some gates and along A15
• Siemens wants ATD readers on all nuclear readers
  as well as along A15
• Euromax terminal will have its own scanner,
  mainly for verifying if container is empty
• ? Should Port of Rotterdam facilitate this kind
  of security infrastructure?

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Thank you for your attention!