Global supply chain design considerations: Mitigating product safety and security risks (Speier et al. 2011)

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Summary

There is a broad consensus among supply chain professionals that supply chain disruptions are very bad for business: supply chain glitches commonly lower operational performance and reduce shareholder value. Regardless of this, there is surprisingly little research on supply chain design strategies that have the highest potential to mitigate the risk of disruptions. Based on interviews with 75 US-based managers, an industry survey and a case study, Speier et al. (2011) identify types of SCS strategies and examine how contextual factors influence business managers to select a set of SCS design strategies. They argue that the depth and breadth of security initiatives depend mainly on top management mindfulness, operational complexity, product risk and coupling. The abstract is available at: http://www.sciencedirect.com.

Review by Toni Männistö (CBRA) based on his doctoral thesis.

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Full review

The paper of Speier et al. (2011) is quite theoretical and it has therefore only a limited impact on CORE work. It is useful for people for the CORE demonstrators to be aware of various supply chain design strategies and factors that support their selection. All in all, the paper introduces an interesting table that shows what supply chain factors typically affect selection of certain supply chain design strategies (see table below). The paper also includes a useful discussion about the nature of supply chain security risks. The authors point out that supply chain security covers risks of contamination, damage and destruction of products or other supply chain assets, and that these risks may arise from intentional or unintentional activities.

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Reference

Speier, C., Whipple, J. M., Closs, D. J., & Voss, M. D. (2011). Global supply chain design considerations: mitigating product safety and security risks. Journal of Operations Management, 29(7), 721-736.

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Estimating the Operational Impact of Container Inspections at International Ports (Bakshi et al. 2011)

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Summary

The US government is pushing a new 100 % screening regime for US-bound containers in foreign ports to mitigate the risk of weapons of mass destruction entering US soil. The 100 % regime, however, is a major concern for foreign port operators because the current Container Security Initiative (CSI) regime seems not to be scalable for high inspection rates. The paper of Bakshi et al. (2011) simulate impacts of two container inspection regimes (the CSI and a new one) in terms of port congestion, handling cost and dwell time. To carry out the simulation, the authors use discrete event queuing network simulation with real container movement data from two of the world’s busiest container terminals. The analysis shows that cargo inspections many times disrupt optimized logistics processes at seaports. In particular, inspections extend the transportation leadtime because shipments lose time as they (i) are moved to an inspection site, (ii) queue for inspection to start, (iii) pass inspections themselves. Download the abstract here: http://pubsonline.informs.org.

Review by Toni Männistö (CBRA) based on his doctoral thesis.

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Full review

This paper is highly relevant for CORE demonstrations that involve screening in seaports (WP10-11 and WP13-15 and WP17). The research illustrates the impact of the security integration on speed, cost, and predictability of the seaport logistics. Bakshi et al. (2011) observe that security inspection at port entrances (quayside for ships and city-side for trucks) with drive-through inspection portals, does not delay nor divert the routine container handling process, in which a crane unloads a container from a ship or a truck and deposits it to a stack where the container waits until it is its time to leave the port. But if a container is inspected a few hours prior its scheduled departure, as is currently done under the US Container Security Initiative (CSI) regime, the routine handling process gets disrupted, (see Figure 6). Remarkably, the only value-adding security activity “non-intrusive inspection” (11) requires three preceding activities (8P10) and another three following activities (12-14), none of which add value from security or service standpoints. Other valueless activities, which do not appear in the illustration, include searching of the shipment selected for screening and verification of its documentation. The extra activities consume time and money but add no value to the shipping service. The first approach with drive-through portals eliminates the non-value adding supportive logistics activities (8-10 and 12-14) and therefore enhances logistics speed and efficiency without necessarily lowering the security level.


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Reference

Bakshi, N., Flynn, S. E., & Gans, N. (2011). Estimating the operational impact of container inspections at international ports. Management Science, 57(1), 1-20.

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Supply chain security orientation: conceptual development and a proposed framework (Autry and Bobbit 2008)

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Summary

Even though supply chain security has become an increasingly important managerial domain, there is little understanding about what security aware firms are, what enables and drives security awareness, and what are the outcomes of supply chain security (SCS) orientation. Autry and Bobbit (2008) set out conceptualize, validate and operationalize the construct of SCS orientation. Based on 31 interviews with US-based managers, they conclude that SCS orientation comprises four general categories of security solutions: security preparation and planning, security-related partnerships, organizational adaptation and security-dedicated communications and technology. The authors write that these security solutions “could result in supply chain risk management-related efficiencies, such as decreased lead times to customers, greater product reliability, waste reduction, and increased delivery reliability, due to the lessened need for operations workers to perform security-related tasks such as redundant container checking, securing shipments, or other similar tasks.” The abstract is available at: http://www.emeraldinsight.com.

Review by Toni Männistö (CBRA) based on his doctoral thesis.

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Full review

The CORE demonstrators could a learn lesson from the research paper of Autry and Bobbit (2008) that organizational commitment to security plays a critical role in the fight against supply chain crime. Ideas and findings of the research paper also contribute to the development of the CORE educational and training material (WP19). The article shows that top management support, employee security attitudes, employee integrity/loyalty are key internal factors that strengthen the SCS orientation. External contributing factors include political political/legal factors/support, partner cooperation, and partner support. Strong SCS orientation is expected to translate into higher business performance, customer satisfaction and supply chain chain continuity.

Reference

Autry, C.W. & Bobbitt, L.M., 2008. Supply chain security orientation: conceptual development and a proposed framework. The International Journal of Logistics Management, 19(1), pp.42–64.

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Interview with Ms. Sarma on the US CSP-program

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28.6.2016: Today’s CBRA Interview with Ms. Dace Sarma from CRDF Global focuses on the U.S. Department of State’s Chemical Security Program

 

Hi Dace, and thanks for joining CBRA Interview. Can you please tell first a bit of your background and what you do today?

I work at CRDF Global, an independent nonprofit organization that promotes international scientific and technical collaboration through grants, technical resources, training and services. At CRDF Global, I work in partnership with the U.S. Department of State’s Chemical Security Program, CSP in short, on programming collaborating with government, security, academic, and industrial communities around the world to strengthen their ability to thwart chemical attacks. Prior to working with CSP, I supported and implemented the Department of State’s Office of Weapons of Mass Destruction and Terrorism, WMDT in short, projects within the scope of CRDF Global support for the WMDT.

 

Thanks for sharing that. Can you explain more about CRDF Global and the Chemical Security Program, CSP, by the US State Department?

CSP works with a number of implementing partners, including CRDF Global, to promote chemical security through sponsorship of projects designed to identify and address chemical security vulnerabilities and prevent chemical attacks.

CSP collaborates with diverse stakeholders, including partner governments, subject matter experts, and international organizations, to enhance chemical security through capacity building workshops, and trainings.

 

I had the pleasure to join twice the CRDF Global workshops in 2015: first to Hurghada, Egypt, in March 2015, and second to Istanbul, Turkey, in December 2015. The former workshop was targeted for the Egyptian government and chemical industry, and the latter one for the Iraqi government and chemical industry. Extremely interesting 3-4 days in both workshops, with great audiences and co-speakers / co-facilitators. In both workshops I gave presentations e.g. on FP7-project CORE / dangerous goods tracking, and on Dow Chemical supply chain security – thanks again to Ms. Antonella Di Fazio of Telespazio and Dr. Toni Mannisto of CBRA for co-producing these presentations. What is the current status of CSP regarding these countries today, if I may ask?

Thank you again for your participation in these workshops, Juha. We all appreciated you sharing your experience in chemical supply chain and transportation security.

We have continued work with our partners in Egypt on chemical supply chain security. CRDF Global, the Federation of Egyptian Industries’ Environmental Compliance Office (FEI-ECO) and the Federation of Egyptian Industries’ Chamber of Chemical Industries (CCI) held an event in December, also sponsored by CSP, which convened 170 government, industry and academia representatives from Egypt’s chemical sector to highlight Egypt’s achievements in securing the chemical supply chain and identify further steps required to secure their chemicals in transit.  FEI-ECO and CCI are also working to provide technical guidance and support for Egyptian chemical companies to adopt Responsible Care®, an international voluntary chemical management initiative developed by the chemical industry to help chemical companies operate safely, securely and profitably.

In Iraq, CRDF Global and CSP have continued to work closely with a variety of partners from across the chemical and security communities. Most recently in April, with sponsorship from CSP, CRDF Global implemented the 1st National Chemical and Biological Security Coordination Conference in Baghdad. The conference convened Iraqi government, security, industrial, and academic sectors to discuss national efforts, interagency coordination, and best practices to counter chemical and biological proliferation in Iraq.

 

Any plans in 2016 to organize similar workshops in the MENA region?

We will continue to work with our international partners, including in the MENA region, in 2016. As the world becomes more connected, we will continue to focus on securing the chemical supply chain.  Many of our partners have also identified chemical ground transportation security as an area of particular interest.  We look forward to working with technical experts like CBRA and leaders from chemical communities worldwide to enhance global chemical security.

 

Thanks a lot Dace for this interview – and hope to meet you soon again, at one the upcoming missions / workshops! Juha

MARITIME SECURITY – Vessel Tracking Systems Provide Key Information, but the Need for Duplicate Data Should Be Reviewed, GAO, March 2009 (CORE1065)

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Summary: The US government considers identification and tracking of vessels at the US coastal areas, inland waterways and ports important for protecting the US homeland and economy from maritime terrorism. The US coastal guards use a range of identification and tracking solutions to detect any anomalies in maritime traffic that might suggest terrorist activity, such as transportation of weapons of mass destruction, use of explosive-laden boats as weapons, smuggling of weapons, drugs, people or other contraband. This GAO report reviews the US Coast Guards’ current and future solutions for monitoring the maritime traffic: long-range identification and tracking system (LRIT), long-range automatic identification system (AIS) and various radar and camera systems. The report elaborates strengths and weaknesses of these identification and tracking solutions and proposes a roadmap for further strengthening of the US coastal security. The future advancements should pay particular attention to tracking of small and non-commercial vessels and to reconsider ways to collect and analyze data that is relevant for coastal surveillance.  Offering background information about vessel-level tracking and tracing of maritime cargo movements, the report is a relevant source document for those CORE demonstrations that involve shipping of containers from, through and into the US. The report is available for download at: www.gao.gov/new.items/d09337.pdf.

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Full review: CORE demonstrations of WP9 and WP14 benefit from the background information this GAO document offers on identification and tracking of vessels because these two demos involve US seaports and shipping at the US territorial waters. Also the CORE’s risk and IT clusters might find the information of this GAO document useful. The information that the identification and tracking provide allow the coastal guards to assess risk-levels of individual vessel movements and decide when it is reasonable to intervene and check anomalies. The vessel tracking and identification involves also a great deal of IT integration because it currently involves many technical components and synthetizes data collected from many different sources.

Cross-references:

  • Maritime Security: Information Sharing Efforts Are Improving. GAO-06-933T. Washington, D.C.: July 10, 2006.
  • Maritime Security: Public Safety Consequences of a Terrorist Attack on a Tanker Carrying Liquefied Natural Gas Need Clarification. GAO-07-316. Washington, D.C.: February 22, 2007.
  • Maritime Security: Coast Guard Inspections Identify and Correct Facility Deficiencies, but More Analysis Needed of Program’s Staffing, Practices, and Data. GAO-08-12. Washington, D.C.: February 14, 2008.

Additional keywords: Maritime security, long-range identification and tracking system (LRIT), long-range automatic identification system (AIS), track & trace

 

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MARITIME SECURITY – DHS Progress and Challenges in Key Areas of Port Security, GAO, July 2010 (CORE1064)

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Summary: This GAO report analyses the progress the US Department of Homeland Security (DHS) has made in maritime supply chain security over the past five to ten years. The report raises problems that the DHS and its component agencies – the Coast Guard and the Customs and Border Protection (CBP) – have encountered regarding improvement of risk management, reduction of the vulnerability to threats of small vessels, implementation of security assessment in foreign ports, and the overall progress in supply chain security.  The report states that so far the Coast Guard has carried out risk assessments, but their results do not allow effective comparison and prioritization of risks across ports. The Coast guard has also identified points of vulnerability related to waterside attacks by small vessels, reached out to the general public to encourage recreational sailors to report anomalies, started tracking of small vessel, tested equipment to screen small vessels for nuclear material and conducted security maneuvers such as vessel escorts. Nevertheless, resource constraints and technical problems prevent the Coast Guard to protect the US coastline and maritime infrastructure from small-vessel threats effectively. Moreover, the Coast Guard has been assessing security in foreign ports, but the lack of the agency’s resources and certain countries’ reluctance to collaborate with the US authorities have slowed down the global security assessment. Finally, as for the general supply chain security, the DHS has been running the Secure Freight Initiative (SFI) in foreign ports to test the feasibility of the 100% scanning of US-bound shipping containers with non-intrusive inspection (NII) technologies and radiation detection equipment. The findings of the SFI pilots indicate that the 100% scanning is not a feasible policy because it would disrupt port logistics, damage international trade and raise healthy concerns, among other things. The report is available for download at: www.gao.gov/assets/660/659087.pdf.

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Full review: This GAO review concentrates on the US maritime supply chain security. The document provides important information for people who are working for the CORE demonstrations of WP1 and WP14 because these demos involve maritime transportation into and from the US mainland. Those demonstrations that test tracking & tracking solutions might benefit from the document’s update on small-vessel identification and tracking systems.

Cross-references:

  • Coast Guard: Deployable Operations Group Achieving Organizational Benefits, but Challenges Remain. GAO-10-433R. Washington, D.C.: April 7, 2010.
  • Supply Chain Security: Feasibility and Cost-Benefit Analysis Would Assist DHS and Congress in Assessing and Implementing the Requirement to Scan 100 Percent of U.S.-Bound Containers. GAO-10-12. Washington, D.C.: October 30, 2009.
  • Maritime Security: The SAFE Port Act: Status and Implementation One Year Later. GAO-08-126T. Washington, D.C.: October 30, 2007.
  • Maritime Security: Vessel Tracking Systems Provide Key Information, but the Need for Duplicate Data Should Be Reviewed. GAO-09-337. Washington, D.C.: March 17, 2009.
  • Supply Chain Security: Challenges to Scanning 100 Percent of U.S.-Bound Cargo Containers. GAO-08-533T. Washington, D.C., June 12, 2008.

Additional keywords: Maritime security, supply chain security, 100% scanning and track & trace

 

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AVIATION SECURITY – Progress Made, but Challenges Persist in Meeting the Screening Mandate for Air Cargo, GAO, March 2011 (CORE1062)

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Summary: This GAO report reviews the recent progress of the US air cargo security scheme. The Transportation Security Administration (TSA), the main agency responsible for the US air cargo security, has been working towards the implementation of the 100% screening requirements of the 9/11 Commission Act of 2007. So far TSA has set up a voluntary Certified Cargo Screening Program (CCSP) to allow trusted logistics operators to screen air cargo outside congested airports, launched a program for testing technologies for air cargo screening and expanding its program for approving explosive detection dog teams. The main obstacle in meeting the 100% screening requirement is that TSA has no reliable mechanism for verifying screening data from domestic foreign screening operators, which self-report the data. TSA also struggles in finding resources to employ as many transport security inspectors as it is required to oversee the Certified Cargo Screening Program. The report also points out that the current technologies that TSA has approved for cargo screening cannot screen large cargo units – pallets or unit loading devices (ULDs) – and this incapability reduces speed and cost-efficiency of air cargo screening. Overall, this GAO document provides a general outlook on state and challenges the US air cargo security regime, and therefore those CORE demonstrations that focus on the US-bound or US-origin air transport should consider the report as a key source material. The report is available for download at: www.gao.gov/assets/130/125678.pdf.

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Full review: This document is relevant for the CORE demonstrations that involve air transportation into or through or from the US. Especially the DHL demo, that concentrates on shipping of military aircraft parts from the US to Spain, is affected by the TSA’s programs and initiatives that the report analyses. The report is very concise and informative, so it might be beneficial to the CORE’s educational and training activities.

Cross-references:

  • GAO, Aviation Security: Federal Coordination for Responding to In-flight Security Threats Has Matured, but Procedures Can Be Strengthened, (Washington, D.C.: July 31, 2007).
  • GAO, Aviation Security: Transportation Security Administration May Face Resource and other Challenges in Developing a System to Screen All Cargo Transported on Passenger Aircraft
  • GAO, Aviation Security: Federal Efforts to Secure U.S.-Bound Air Cargo Are in the Early Stages and Could Be Strengthened, GAO-07-660 (Washington, D.C.: April 2007).
  • GAO, Aviation Security: Progress Made in Systematic Planning to Guide Key Investment Decisions, but More Work Remains, GAO-07-448T (Washington, D.C.: February 13, 2007).

Additional keywords: Air cargo security, 100% screening, Certified Cargo Screening Program (CCSP)

 

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MARITIME SECURITY – Progress Made, but further actions needed to secure the maritime energy supply, GAO, August 2011 (CORE1061)

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Summary: The GAO report discusses actions the US Coast Guard and the Federal Bureau of Investigation (FBI) have taken to strengthen security of energy tankers and offshore energy infrastructure – that produces, transports, or receives oil and natural gas – from terrorist attacks. The report’s key recommendation is that the Coast Guard need to assess risks to all offshore facilities in the US territorial waters, to improve emergency response plans in case of oil spills and to design performance measures for emergency response activities. This GAO document focuses on a rather narrow field of critical infrastructure, the US maritime energy infrastructure, which is not in the CORE’s scope. The CORE’s risk cluster might consider useful the description how the Coast Guard has applied its Maritime Security Risk Analysis Model (MSRAM) to determine risk of the US maritime energy infrastructure. The report is available for download at: www.gao.gov/new.items/d11883t.pdf.

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Full review: This GAO document is not very relevant to CORE because of its topic (the US maritime energy infrastructure) that is not within the CORE’s scope. Even so, the risk cluster, the IT cluster and the demonstrations on maritime transport might consider useful of the insight this report offers on security risk assessment.

Cross-references:

  • Maritime Security: Actions Needed to Assess and Update Plan And Enhance Collaboration among Partners Involved in Countering Piracy off the Horn of Africa. GAO-10-856. Washington, D.C.: September 24, 2010.
  • Critical Infrastructure Protection: Update to National Infrastructure Protection Plan Includes Increased Emphasis on Risk Management and Resilience. GAO-10-296. Washington, D.C.: March 5, 2010.
  • Quadrennial Homeland Security Review: 2010 Reports Addressed Many Required Elements, but Budget Planning Not Yet Completed. GAO-11-153R. Washington, D.C.: December 16, 2010.

Additional keywords: Critical infrastructure protection (CIP), maritime security and security of supply

 

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PORT SECURITY GRANT PROGRAM, Risk Model, Grant Management, and Effectiveness Measures Could Be Strengthened, GAO, November 2011 (CORE1060)

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Summary: The Department of Homeland Security (DHS) has granted almost 1.7 billion USD to port security through the Port Security Grant Program (PSGP). The program is administered by a component agency of DHS, Federal Emergency Management Agency (FEMA). This GAO reports highlights some problems that the grant program has encountered. The first issue is that the risk assessment the FEMA uses to assess risk levels and assign grants to different ports does not take into account how security improvements affect the vulnerability of the ports to terrorist attacks. The report recommends the FEMA to design a vulnerability index that accounts for security improvement and to coordinate with the Coast Guard to get access to the most accurate vulnerability and threat information. The second issue with the grant program is that much of the grant money does not get used and translate into practical port security projects. The GAO report proposes acceleration of the grant granting process with updated administrative procedures and with more administrative staff.  Finally, this GAO report recommends the FEMA to develop performance metrics to assess its administration in relation to the Port Security Grant Program. The contents of this GAO report is not very relevant to CORE because no US seaports are partners in the project. The report is available for download at: www.gao.gov/assets/590/587142.pdf.

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Full review: This document has only a limited relevance for CORE because the consortium does not involve any US seaport operators. The demonstrations of WP9 and WP14 that cover shipping of goods from and into the US through local seaports might find it useful to learn about how US ports can apply for funds to improve the security. Otherwise, other demonstrations do not benefit much of this information. However, the CORE’s risk cluster can benefit from the rather detailed description of the risk analysis model in the report’s Appendix II.

Cross-references:

  • Maritime Security: Actions Needed to Assess and Update Plan And Enhance Collaboration among Partners Involved in Countering Piracy off the Horn of Africa. GAO-10-856. Washington, D.C.: September 24, 2010.
  • Critical Infrastructure Protection: Update to National Infrastructure Protection Plan Includes Increased Emphasis on Risk Management and Resilience. GAO-10-296. Washington, D.C.: March 5, 2010.
  • Quadrennial Homeland Security Review: 2010 Reports Addressed Many Required Elements, but Budget Planning Not Yet Completed. GAO-11-153R. Washington, D.C.: December 16, 2010.

Additional keywords: Critical infrastructure protection (CIP), maritime security and security of supply, Port Security Grant Program (PSGP)

 

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SUPPLY CHAIN SECURITY – CBP Needs to Enhance Its Guidance and Oversight of High-Risk Maritime Cargo Shipments, GAO, January 2015 (CORE1059)

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Summary: The report reviews the US Customs and Border Protection’s (CPB) approach to risk assessment and targeting of maritime shipping containers. The report’s highlights that CPB does not have clear decision rules and reporting procedures to monitor percentage of containers that the risk assessment system flags high-risk and that get eventually examined. The source of this problem is that the CPB’s officials (targeters) may waive examination of the high-risk containers if the container (i) falls within a predetermined category (standard exception), or (ii) the targeters can articulate why the shipment should not be considered high risk. The targeting units have currently differing definitions of “standard exceptions” and differing views on what constitutes the “articulate reasons.” The GAO report recommends the CPB to clarify, harmonize and enforce the rules and the procedures for waiving the high-risk containers from examination. As for CORE, this report provides a detailed and recent outlook on the US maritime risk assessment and targeting scheme, and this information is going to support work of the CORE’s risk cluster and the demonstrations that involve shipping of sea containers into the US. The report is available for download at: www.gao.gov/assets/670/668098.pdf.

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Full review: This GAO reports contains crucial information about the US risk assessment and container targeting systems that benefit the CORE’s risk cluster. The report outlines principles, procedures, datasets and scanning methods that constitute the world’s most advanced risk assessment system for maritime shipping containers. The CORE’s IT cluster might also benefit from the report’s description of the CPB’s Automated Targeting System (ATS) that is used to compute risk scores for shipping containers and flag the ones with the highest score as high-risk. Regarding the CORE demonstrations, the GM demon (WP19) must comply with data requirements (24-hour rule and the “10+2” rule) that enable the US risk assessment and targeting system. Also the demos involving customs controls, especially WP11.2 and WP10.1, may learn something from the ways how the US border control authorities are assessing risk levels of incoming containers.

Cross-references:

  • Supply Chain Security: CBP Needs to Conduct Regular Assessments of Its Cargo Targeting System. GAO-13-9. Washington, D.C.: October 25, 2012.
  • Maritime Security: Progress and Challenges in Key DHS Programs to Secure the Maritime Borders. GAO-14-196T. Washington, D.C.: November 19, 2013.
  • Supply Chain Security: Feasibility and Cost-Benefit Analysis Would Assist DHS and Congress in Assessing and Implementing the Requirement to Scan 100 Percent of U.S.-Bound Containers. GAO-10-12. Washington, D.C.: October 30, 2009.

Additional keywords: Security Filing and Additional Carrier Requirements (known as the 10+2 rule), 24-hour rule, risk assessment

 

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