Presentation on theme: "Layers of Risk Define Layers of Security Katie Freisen Sr. Manager, Transportation Security Johnson & Johnson Global Transportation April 3, 2012."— Presentation transcript:
Layers of Risk Define Layers of Security Katie Freisen Sr. Manager, Transportation Security Johnson & Johnson Global Transportation April 3, 2012
Agenda Johnson & Johnson North American Security Evolution Risk Assessment Model Attributes Actions Key Focus Areas DDI/DNET TSA
GTO Security Evolution Identified secure carriers for critical business Implemented Freight Security program on high risk shipments Layers of security included GPS Tracking, Escorts, and other measures 2009 Implemented security program for critical inbound loads Implemented security program on additional inbound lanes that presented elevated risk Implemented security program on broader scope of lanes, evaluated balance of business Partnered with Global Security to conduct on-site assessments of several suppliers Evaluated potential security gaps in overall, high value Transportation Operations Began process of evaluating security capabilities of supplier base 2010 Continued process of evaluating ways to increase minimum security standards across all GTO managed lanes Carrier Assessments in place for majority of existing suppliers and all new suppliers 2011 Dedicated Leadership for Transportation Security established within GTO Developed robust Risk Assessment Model for assessing risk based on product, value, distance, high risk points, etc. Modified layers of security coverage based on risk assessment; Key focus is to put the RIGHT layer of security on the RIGHT load 2012 Complete risk assessment analysis on all modes, implement recommended changes Increase overall security coverage Pilot and Utilize leading technology for ground and air activity YOU ARE HERE!
Goal of Risk Assessment – to protect the loads that are at risk, with the right layer of security The Risk Assessment tool was created to model risk based on pre-determined risk criteria, in a scalable fashion: Product (Scheduled Narcotics, PSE, Ingestible, Infuseable, Implantable, Unsterilized FG) Distance (ie: >500 miles = layover for single driver) Value of the load Frequency (>1 per month?) Known Security Risk at origin & destination Prior incidents on specific lane All TL lanes in North America are completed Implemented escorts for key Destruct Loads Ocean, LTL, Air, Parcel assessments in progress 4
DNET DNET = 12:01 AM of the RDD – Carrier Quoted Transit Time Example – Order Has an RDD of 3/30 Has transit time of 6 hours 3/293/30 12:01 AM DNET= 6 PM Actual Appointment 12:01 AM 3/273/28 Order Drops “Depart No Earlier Than….Freight at Rest is Freight at Risk” PROCEED DIRECTLY TO THE DC…...DROP LOADS 24/7 AT ALL J&J DISTRIBUTION CENTERS
DDI Johnson & Johnson Cargo Handling Policy and Procedures (highlights) – All loads parked unattended overnight must be secured in a locked, fenced-in, and well lighted lot. Under no circumstances is an open lot, public street or highway, or truck stop, acceptable for overnight, unattended parking. Avoid parking in an area dimly lit and hidden from view. – Recommend that drivers do not stop for the first 200 miles upon leaving the terminal unless an emergency or has Hours of Service implications. – Drivers are responsible to lock their tractors when stopping and not have the motor running in their absence. – If in an emergency, a Johnson & Johnson load is to be dropped, it must be padlocked and the trailer backed up against a building or another trailer in such a manner that entry into the trailer is prohibited (restricted). KINGPIN or SUZY locks to be used on the “5 th Wheel” trailer coupling if trailers are to be dropped. – At the beginning of each day and stop, the seals and locks on all trailers will be checked for tampering and recorded as to date and time of check with the driver’s initials next to each entry on the Bill of Lading.
Security Escorts Implement “Depart No Earlier Than” Process at DCs Closing gaps from carrier on-site assessments All lanes, all stops vetted by WWS Embedded GPS: Active Monitoring by Logistics Security Provider (lanes & Rest Stops vetted by GS) Compliance Escorts Fleet Cutting-edge Security Equipment Embedded GPS: Exception Monitoring by Logistics Security Provider Embedded GPS: Theft recovery only by Logistics Security Provider Team Drivers External GPS & monitoring provided by premium security carriers (including advanced locks and braking systems) Carrier, driver SOPs tied to contracts Security Certified Carriers Highest Risk Lanes High Risk Lanes High Risk (components) Applies to All business groups
US Theft History – Industry * Source Freight Watch International Consumer cargo theft rose from just over 2% in 2006 to 6% in At 5% for 2011, the total number of thefts for the year was relatively flat, going from 54 thefts in 2010 to 52 thefts in Pharmaceutical cargo theft has remained at a steady % of total cargo theft between 4% and 6% year over year saw the first dip in the total number of cargo theft incidents, declining from 49 in 2010 to 35 in Factors for drop: Hardening of the supply chain Emergence of faster response times Education of drivers hauling cargo