Best Practices Putting “Best Practices” into Practice.

29
Best Practices Putting “Best Practices” into Practice

Transcript of Best Practices Putting “Best Practices” into Practice.

Page 1: Best Practices Putting “Best Practices” into Practice.

Best Practices

Putting “Best Practices” into Practice

Page 2: Best Practices Putting “Best Practices” into Practice.

At a Glance:

Supply Chain Custodians

Page 3: Best Practices Putting “Best Practices” into Practice.

Anjo City, Japan

•Transmissions are loaded into containers

•Container sealed

•Transmissions convoy to the Port of Nagoya

Inland Dray

•Container storage at Port of Nagoya

Inland Dray Origin Factory

•Packaging•Stuffing

Inspect & Load

Transfer Custodian from factory to terminal, Known or Unknown Partner

•Inspect, Stuffing•Seal Controls

•Container moves from Port of Nagoya to Port of Seattle

Ocean

•Containers are unloaded at APL terminal

Port of Seattle

•Drayed (in-bond) via trucking company to Vancouver, Canada

Truck

•Container moves from port to port to discharge port in US

Ocean

•Containers unloaded, out gate process and visibility at arriving terminal

Port of Arrival Port of Arrival

•Drayed (in-bond) from terminal to rail or direct to factory

Truck

•Containers are moved to truck

Consolidation

•Containers are loaded at the terminal

•Gate in Process and visibility at Terminal

Port of Export

•Containers are shuttled in a just-in-time and in-sequence process to the General Motors plant

GM Factory CA Toronto, Canada

•Containers are unloaded at a railhead at Toronto, Canada

•Containers are drayed from railhead to GM inventory yard

Truck

CN

Rail

•Containers are drayed via rail from Vancouver to Toronto, Canada

•Containers, seal removed, unloaded, products moved to factory

Factory or RDCDestination Terminal

•Containers are unloaded, out gated visibility and status

•Containers are drayed from rail to factory, DC, Known Partner

TruckRail

•Rail transit and visibility, arrival

•Containers are transferred to Canadian National Railroad (CN)

Vancouver, Canada

CN

•Containers are transferred to rail, in gate visibility

Inland Rail

Supply Chain Custodians

Page 4: Best Practices Putting “Best Practices” into Practice.

The term “Best Practices” has become the “Change

Management” of the 90’s

Page 5: Best Practices Putting “Best Practices” into Practice.

Although now, in the “00” decade, the ultimate question is this:

Page 6: Best Practices Putting “Best Practices” into Practice.

Although now, in the “00” decade, the ultimate question is this:

What’s in it for me?

Page 7: Best Practices Putting “Best Practices” into Practice.

C-TPAT Benefits

Tier One (Certified):• Meaningful reduced inspection benefits

Tier Two (Validated/Minimum Security):• Greater examination reductions

For former “Low Risk” importers, this represents a “Business as Usual” equation and seems to be in name only as a benefit.

Page 8: Best Practices Putting “Best Practices” into Practice.

C-TPAT Benefits

Tier Three (Validated/Best Practices):• Front of the line status for all exams• Front of the line status in the event of a port

shut-down• Elimination of all but statistically selected

cargo examinations

This is where the real benefits are being realized, from the perspective of Trade

Page 9: Best Practices Putting “Best Practices” into Practice.

C-TPAT Benefits

Quantifiable Examination Benefits:

C-TPAT importers are 7 times less likely to receive cargo examination. Determine your company exam ratio, determine the cost per exam, then configure the amount of exams that you are not incurring due to C-TPAT

Page 10: Best Practices Putting “Best Practices” into Practice.

C-TPAT Benefits

Quantifiable Examination Benefits:

Annual exam ratio: 50 per year

Without C-TPAT: 350 per year

Average exam cost: $500 per exam

Annual savings: $150K

Page 11: Best Practices Putting “Best Practices” into Practice.

“Best Practices”

What are They and Suggestions on Implementing Them into your Supply

Chain Processes

Page 12: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Require the adoption of C-TPAT security measures throughout a company’s entire international supply chain through contractual means.

Page 13: Best Practices Putting “Best Practices” into Practice.

Best Practices

• WHEREAS Company X and its parent corporation joined the Customs-Trade Partnership Against Terrorism (“C-TPAT”), a voluntary program initiated by United States Bureau of Customs and Border Protection, a department within the United States Department of Homeland Security;

• WHEREAS the C-TPAT program is a voluntary program with mandatory requirements and is dedicated to increasing border security, preventing terrorist activities, and maintaining the free and safe flow of goods into the United States;

Page 14: Best Practices Putting “Best Practices” into Practice.

Best PracticesWHEREAS Company X is committed to obtaining a

compliance commitment by all parties involved in the international supply chain: (a) to comply with all laws; (b) to abide by all safety and security programs and inspections (hereinafter collectively “Security Programs”), whether mandatory or voluntarily requested by any governmental entity and/or by Company X and/or its parent corporation; and (c) to comply with the Statement of Business Ethics of Company X and/or its parent corporation and all Vendor Guidelines (all collectively referred to as “Vendor Requirements”);

Page 15: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Active involvement in the security enhancement process by senior company leaders/management.

Page 16: Best Practices Putting “Best Practices” into Practice.

Best Practices

From Statement of Corporate Policy:Additionally, as a participant of the Customs-

Trade Partnership Against Terrorism (C-TPAT) program, Company X commits to working diligently in concert with its vendors and their factories, forwarders, consolidators, customs brokers, carriers, and any other relevant service provider to establish controls related to cargo security initiatives

Page 17: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Hold quarterly or bi-annual meetings with Senior Management to brief them on C-TPAT initiatives, challenges, accomplishments, etc.

• Memorialize these discussions.

• Incorporate C-TPAT objectives into job responsibilities or annual goals.

Page 18: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Use of GPS tracking devises, particularly in the trucking environment.

Page 19: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Security escorts of trucks to the border/port, particularly in high risk environments.

Page 20: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Perimeter fencing with magnetic sensors that activate if pressure is applied against the fence.

Page 21: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Measurement of empty trailers/containers prior to stuffing to identify false walls, ceilings, etc.

Now a requirement under the March 25 Importer Requirements

Page 22: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Create a “Container Inspection Form” for factory to complete upon loading of container, and require submission of same via letter of credit.

Page 23: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Multi-level encrypted IT security systems which restrict employee’s access to only certain information based on their job responsibilities.

Page 24: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Criminal background checks on all employees, to the extent permitted by foreign laws/regulations.

Page 25: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Add to social compliance checks upon factory evaluation.

Page 26: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Screening procedures for new clients, suppliers, manufacturers, etc. which go beyond financial stability measures to include security related indicators.

Page 27: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Use of container sealing devises which exceed the current minimum PAS ISO 17712 standards, for example the use of cable seals around the “J” bars or “sea lock” devises; and the use of container security device technologies (as they become more mainstream and reliable).

Page 28: Best Practices Putting “Best Practices” into Practice.

Best Practices

• Electronic transmission of entry level import data as early in the importation process as possible, preferably prior to loading the cargo (i.e. at the 24 Hour Rule timeline).

Page 29: Best Practices Putting “Best Practices” into Practice.

Best Practices from CBP

• CBP has committed to compiling and distributing extensive “Best Practices” to C-TPAT members.

• In final approval process, soon to be printed and mailed to Primary C-TPAT contact.

• 100 plus pages