Supply Chain Management A R The supply chain is a complex system of numerous, integrated stakeholders. These W stakeholders are responsible for the transportation, storage, documentation, and A Y handling of material goods and cargo. Each entity has its own unique relationship with and role within the chain—as well as its own unique security requirements. The challenge of trying to secure the supply chain at every level is both a domestic and global concern. In this global economy, companies must be able to integrate S security into supply chain logistics to protect their employees, assets, and clients SUPPLY CHAIN U from incidents of theft and other damaging events. P Supply Chain Security: A Comprehensive Approach provides security profes- P SECURITY sionals the tools necessary to ensure supply chain security. The book demonstrates L how to establish and enforce security policies and protocols, including rapid Y responses that must be deployed in the event of a theft or security incident. Most importantly, it enables professionals to integrate business practices into the plan- C A Comprehensive Approach ning, development, and successful operation of supply chains to ensure security H and protect assets. A I DR. ARTHUR G. ARWAY Drawn from the experience of a recognized leader in domestic and inter national N supply chain logistics, trade, and transportation security, the book illustrates through a series of case studies how security professionals can institute sound S security practices. By demonstrating to their stakeholders and potential customers E that they provide a secure environment for materials, products, goods, and cargo, C companies can increase their customer base and improve their bottom line. U R I T Y K14857 6000 Broken Sound Parkway, NW Suite 300, Boca Raton, FL 33487 ISBN: 978-1-4665-1187-3 711 Third Avenue 90000 New York, NY 10017 an informa business 2 Park Square, Milton Park www.taylorandfrancisgroup.com Abingdon, Oxon OX14 4RN, UK 9 781466 511873 w w w. c r c p r e s s . c o m K14857 cvr mech.indd 1 1/3/13 12:03 PM SUPPLY CHAIN SECURITY A Comprehensive Approach SUPPLY CHAIN SECURITY A Comprehensive Approach DR. ARTHUR G. ARWAY CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2013 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20130114 International Standard Book Number-13: 978-1-4665-1190-3 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. 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And to my wife and honey, Dr. Rosemary Arway, who encouraged me to move forward with this book. Thank you. © 2010 Taylor & Francis Group, LLC Contents List of figures xi About the Author xiii introduction xv PArt i WhAt is suPPLy chAin security? chAPter 1 WhAt is A suPPLy chAin? 3 1.1 Origin 3 1.2 Manufacturing/Suppliers 4 1.3 Handoffs 5 1.4 Initial Service Provider 6 1.5 Service Providers 6 1.6 Trucking 6 1.7 Ocean Shipping 8 1.8 Airlines 9 1.9 Third-Party Logistics Providers 12 1.10 PODs 13 chAPter 2 eLements thAt imPAct the suPPLy chAin 15 2.1 Operations 17 2.2 Contracts 18 2.3 Customer Demands, Written and Nonwritten 19 2.4 Provider Capability 21 2.5 Geography 22 2.6 Force Majeure/Acts of God 23 2.7 Crime 24 © 2010 Taylor & Francis Group, LLC vii viii Contents 2.8 Volume 28 2.9 Storage Capacity 29 2.10 Government Controls 30 References 31 chAPter 3 security: suPPLy chAin versus corPorAte 33 3.1 Focus of the Program 33 3.2 Corporate Culture 34 3.3 Supplier and Provider Relationships 35 References 36 PArt ii deveLoPing A suPPLy chAin security ProgrAm chAPter 4 security for Key LinKs in the chAin 39 4.1 Origin 39 4.1.1 Security Reviews of Origin 40 4.2 Actions 41 4.3 Customers 42 4.4 Providers 43 4.4.1 Provider Security Review 45 4.4.2 CCTV 45 4.4.3 Access Controls 46 4.4.4 Intrusion Alarms 46 4.5 Storage and Distribution 47 4.5.1 Security Review of Facility and Location 48 4.5.2 Transportation Security Review 49 4.5.2.1 Basics for Transportation 49 4.5.3 Shipping and Receiving 50 4.6 Destination Concerns 56 chAPter 5 eLements of A successfuL suPPLy chAin security ProgrAm 59 5.1 Goal of the Supply Chain Security Program 59 5.2 Theft and Pilferage 60 5.2.1 Smuggling and Contamination 61 5.2.2 Antiterrorism 63 5.3 Government Supply Chain Security Program Compliance 64 5.4 Customer Contractual Obligations 65 5.5 Risk Management 67 5.6 Industry Positioning and Branding 68 5.7 Marketing and Sales 70 References 71 chAPter 6 methodoLogy for suPPLy chAin security 73 6.1 Integration into the Business 73 6.2 Business Unit Support 74 © 2010 Taylor & Francis Group, LLC