1. Supply Chain Security/Supply Chain Preparedness
“the single biggest threat facing
American traders is
supply chain security”
Website for C-T PAT

2. Supply Chain Security
“We have proved to our management that good security is good business.” — Ann Lister of Texas Instruments

3. 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

4. Supply Chain Security What’s the cost of 9/11 to the Supply Chain?
Fortune Magazine - $50-80 billion a year
inefficient supply chains
higher transportation costs
increased inventory

5. 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
>58 % 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
5/3/2019

6. 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

7. 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”
5/3/2019

8. 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.

9. IMB Piracy Reporting Centre in 2012
Worldwide Incidents: updated on 27 Oct 2012 Total Attacks Worldwide: 252 Total Hijackings Worldwide: 26
Incidents Reported for Somalia: Total Incidents: 71 Total Hijackings:13 Total Hostages: 212
Current vessels held by Somali pirates: Vessels: 9 Hostages: 154.

10. Jakarta Anchorage
Type of Attack : Boarded
Narrations:
: 2100 LT: Posn: 06:00.4S - 106:54.6E, 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.

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

12. 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

13. Problems? 66% of Sealift Containers arrive at 20 Major Ports
>58 % 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

14. 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

15. Supply Chain Security
A Global Perspective

16. Top 5 European Ports Rotterdam – 9.743 million TEUs in 2009
Hamburg – million TEUs (9.7 mil in 2008)
Antwerp – 7.3 million TEUs (8.6 in 2008)
Bremen – million TEUs (5.5 in 2008)
Valencia – 3.65 million (3.6 in 2008)

17. Other Key Ports Singapore – 25.87 million TEUs Shanghai – 25 million
Hong Kong – 20.9 million
Shenzhen – million
Pusan – million

18. 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

19. Safe Port Act Container Security Initiative Foreign port assessments
Customs Trade Partnership Against Terrorism

20. 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.

21. Containers - Concerns Cost to X-Ray containers Manpower Delays
Radiation

22. C-TPAT Voluntary November 2001 > 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.

23. 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

24. Food Security
Salmonella

25. BioTerrorism? Dole Foods recall April 2012
Peter Pan Peanut Butter – e coli – 2007
E-coli from fresh Spinach – 2006
Chi Chi’s 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 >3921 separate items recalled

26. 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