Supply chain security
Encyclopedia
Supply chain security refers to efforts to enhance the security
of the supply chain
: the transport and logistics system for the world's cargo
. It combines traditional practices of supply chain management
with the security requirements of the system, which are driven by threats such as terrorism, piracy, and theft. Some analysts have raised concerns about supply chain security overreach. Typical supply chain security activities include:
Security
Security is the degree of protection against danger, damage, loss, and crime. Security as a form of protection are structures and processes that provide or improve security as a condition. The Institute for Security and Open Methodologies in the OSSTMM 3 defines security as "a form of protection...
of the supply chain
Supply chain
A supply chain is a system of organizations, people, technology, activities, information and resources involved in moving a product or service from supplier to customer. Supply chain activities transform natural resources, raw materials and components into a finished product that is delivered to...
: the transport and logistics system for the world's cargo
Cargo
Cargo is goods or produce transported, generally for commercial gain, by ship, aircraft, train, van or truck. In modern times, containers are used in most intermodal long-haul cargo transport.-Marine:...
. It combines traditional practices of supply chain management
Supply chain management
Supply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers...
with the security requirements of the system, which are driven by threats such as terrorism, piracy, and theft. Some analysts have raised concerns about supply chain security overreach. Typical supply chain security activities include:
- Credentialing of participants in the supply chain.
- Screening and validating of the contents of cargo being shipped.
- Advance notification of the contents to the destination country.
- Ensuring the security of cargo while in-transit via the use of locks and tamper-proof seals.
- Inspecting cargo on entry.
Key initiatives
There are a number of supply chain security initiatives in the United States and around the world today. These include:- The Customs Trade Partnership against TerrorismCustoms Trade Partnership against TerrorismThe Customs-Trade Partnership Against Terrorism is a voluntary supply chain security program led by U.S. Customs and Border Protection and focused on improving the security of private companies' supply chains with respect to terrorism. The program was launched in November 2001 with seven initial...
(C-TPAT), a voluntary compliance program for companies to improve the security of their corporate supply chains. - The World Customs OrganizationWorld Customs OrganizationThe World Customs Organization is an intergovernmental organization headquartered in Brussels, Belgium. With its worldwide membership, the WCO is recognized as the voice of the global customs community...
(WCO) adopted the Framework of Standards to Secure and Facilitate Global Trade in 2005, which consists of supply chain security standards for Customs administrations including Authorized Economic OperatorAuthorized Economic OperatorThe growth of global trade and increasing security threats to the international movement of goods have forced Customs administrations to shift their focus more and more to securing the international trade flow and away from the traditional task of collecting customs duties The World Customs...
(AEO) programs. - The Container Security InitiativeContainer Security InitiativeThe Container Security Initiative was launched in 2002 by the U.S. Bureau of Customs and Border Protection , an agency of the Department of Homeland Security. Its purpose was to increase security for container cargo shipped to the United States...
(CSI), a program led by U.S. Customs and Border ProtectionU.S. Customs and Border ProtectionU.S. Customs and Border Protection is a federal law enforcement agency of the United States Department of Homeland Security charged with regulating and facilitating international trade, collecting import duties, and enforcing U.S. regulations, including trade, customs and immigration. CBP is the...
in the Department of Homeland Security focused on screening containers at foreign ports. - The World Customs Organization .
- Efforts for countries around the world to implement and enforce the International Ship and Port Facility Security CodeInternational Ship and Port Facility Security CodeThe International Ship and Port Facility Security Code is an amendment to the Safety of Life at Sea Convention on minimum security arrangements for ships, ports and government agencies...
(ISPS Code), an agreement of 148 countries that are members of the International Maritime OrganizationInternational Maritime OrganizationThe International Maritime Organization , formerly known as the Inter-Governmental Maritime Consultative Organization , was established in Geneva in 1948, and came into force ten years later, meeting for the first time in 1959...
(IMO). - Pilot initiatives by companies in the private sector to track and monitor the integrity of cargo containers moving around the world using technologies such as RFID and GPS.
- The International Organization for StandardizationInternational Organization for StandardizationThe International Organization for Standardization , widely known as ISO, is an international standard-setting body composed of representatives from various national standards organizations. Founded on February 23, 1947, the organization promulgates worldwide proprietary, industrial and commercial...
have released a series of Standards for the establishment and management of supply chain security. ISO/PAS 28000 - Specification for security management systems for the supply chainISO/PAS 28000 - Specification for security management systems for the supply chainISO 28000:2007 - Specification for security management systems for the supply chain is the International Organization for Standardization standard on requirements of a security management system particularly dealing with security assurance in the supply chain....
, offers public and private enterprise an international high-level management standard that enables organisations to utilise a globally consistent management approach to applying supply chain security initiatives.
See also
- Authorized Economic OperatorAuthorized Economic OperatorThe growth of global trade and increasing security threats to the international movement of goods have forced Customs administrations to shift their focus more and more to securing the international trade flow and away from the traditional task of collecting customs duties The World Customs...
- Container Security InitiativeContainer Security InitiativeThe Container Security Initiative was launched in 2002 by the U.S. Bureau of Customs and Border Protection , an agency of the Department of Homeland Security. Its purpose was to increase security for container cargo shipped to the United States...
- Counterfeit consumer goodsCounterfeit consumer goodsCounterfeit consumer goods, commonly called knock-offs, are counterfeit or imitation products offered for sale. The spread of counterfeit goods has become global in recent years and the range of goods subject to infringement has increased significantly...
- Customs Trade Partnership against TerrorismCustoms Trade Partnership against TerrorismThe Customs-Trade Partnership Against Terrorism is a voluntary supply chain security program led by U.S. Customs and Border Protection and focused on improving the security of private companies' supply chains with respect to terrorism. The program was launched in November 2001 with seven initial...
- Document automationDocument automationDocument automation is the design of systems and workflow that assist in the creation of electronic documents. These include logic based systems that use segments of pre-existing text and/or data to assemble a new document. This process is increasingly used within certain industries to assemble...
in supply chain management & logistics - Homeland SecurityHomeland securityHomeland security is an umbrella term for security efforts to protect states against terrorist activity. Specifically, is a concerted national effort to prevent terrorist attacks within the U.S., reduce America’s vulnerability to terrorism, and minimize the damage and recover from attacks that do...
- Infrastructure securityInfrastructure SecurityInfrastructure security is the security provided to protect infrastructure, especially critical infrastructure, such as airports, highways rail transport, hospitals, bridges, transport hubs, network communications, media, the electricity grid, dams, power plants, seaports, oil refineries, and...
- ISO 28000
- ISO 31000ISO 31000ISO 31000 is intended to be a family of standards relating to risk management codified by the International Organization for Standardization. The purpose of ISO 31000:2009 is to provide principles and generic guidelines on risk management...
- Security RiskSecurity riskSecurity Risk describes employing the concept of risk to the security risk management paradigm to make a particular determination of security orientated events.According to CNSS Instruction No...
- Supply Chain ManagementSupply chain managementSupply chain management is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers...
- Track and trace
- Trade facilitationTrade facilitationTrade facilitation looks at how procedures and controls governing the movement of goods across national borders can be improved to reduce associated cost burdens and maximise efficiency while safeguarding legitimate regulatory objectives...
External links
- IMO FAQ on the ISPS Code
- MIT Project on Supply Chain Response to Terrorism
- Supply Chain Risk Management Maturity Model
- Stanford Global Supply Chain Management Forum
- Supply chain security: adding to a complex operational and institutional environment, A Grainger (2007)
- World Customs Journal: special issue on supply chain security
- Port and Maritime Security Online
- Chain of Perils: Hardening the Global Supply Chain and Strengthening America's Resilience
- ISO 28002 supply chain security and resilience
- http://www.supplychainsecurity.com