February - Modern Materials Handling

FROM THEADVISORYBOARDA cost we must affordEveryone has a stake in supply chain security. We must strengthenour resolve and sharpen our vigilence.IT’S 2009. It’s time for global companies to approachsupply chain security with a plan. Security of the supplychain has always been important, but offshore manufacturingand terrorism have driven awareness to newlevels. How serious is the security issue?• Weapons of mass destruction could be part of containershipments between nations.• Cargo theft could drain precious dollars from firms.• Employee theft costs American firms more than $40billion a year, according to the U.S. Department ofCommerce.• Hurricane Ike disrupted shipments in the Gulf ofMexico region.• A band of Somali pirates seized a Saudi tanker carrying$100 million in crude oil hundreds of miles offthe African coast.Supply chain security combines traditional supplychain management practices with security requirementsof the system. Supply chain security protects firmsagainst four threats: theft, terrorism, piracy and physicaldisaster. Firms should have a documented security planaddressing the following:• Credentialing personnel in the supply chain• Trading partner security extending to both suppliersand customers• Employee security awareness• Screening cargo contents• Security of inventory while in-transit through use oftamper-proof containers, seals and locks• Tracking of inventory while in-transit through useof technology enablers such as a global positioningsystem (GPS) and RFID• Security of items while stored in a facility• Information security• Disaster response• Adherence to national and international standardsSupply chain security starts with an organization’sdeveloping a security awareness culture. Employeesat all levels should be educated on potential threats tothe supply chain and provided the means to counterthese threats. Conversely, organizations should solicitinput from employees on vulnerabilities. Periodicsecurity inspections should be conducted to ensure allwithin an organization are in compliance with securitymeasures.A supply chain security plan should not adverselyaffect movement of materials through the supplychain. Coordination of all agencies within the supplychain is a must and all links in the chain must be partof the security plan. Companies must share informationsuch as cargo movement schedules and manifests,yet protect this information from access by the wrongpeople.Technology can be a real enabler by providing accurate,real time information on movement of materialsand the integrity ofshipments at variousnodes. It can alsoreduce the need foran army of surveillancepersonnel.Where canorganizations look tofind supply chain securityinitiatives andstandards? Somesources include:Col. Alan B. Will,chief of staff,2nd Marine LogisticsGroupA supply chainsecurity plan shouldnot adverselyaffect movement ofmaterials throughthe supply chain.• U.S. Customs Service and Department of HomelandSecurity Container Security Initiative (CSI),• The International Organization for Standardization(ISO) 28000: 2007 supply chain security standards,and• Private firm pilot initiatives monitoring containermovement and integrity with RFID and GPStechnology.Vulnerabilities in the supply chain can not only costa company monetary and human resources, but theycan threaten the security of the nation. A well-coordinatedand effective effort protecting our supply chainsis a cost we must bear.Col. Alan Will can be contacted at abjbwill@yahoo.com.mmh.com MODERN MATERIALS HANDLING / FEBRUARY 2009 15