Supply Chain Security Compliance Programs and Third Party … Daine_Eisold... · 2008-05-09 ·...
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May-08/p.1 Supply Chain Security Compliance Programs and Third Party Support presented to the The 1st National Conference on SAFE TRADE & AEO “International Security Initiatives and their Impact on Philippine Trade” Manila Daine Eisold Vice President, Supply Chain Security Cotecna, Inc. May 2008
Transcript of Supply Chain Security Compliance Programs and Third Party … Daine_Eisold... · 2008-05-09 ·...
May-08/p.1
Supply Chain Security Compliance Programs and Third Party Support
presented to the
The 1st National Conference on SAFE TRADE & AEO “International Security Initiatives and their Impact on Philippine Trade”
Manila
Daine Eisold
Vice President, Supply Chain Security
Cotecna, Inc.
May 2008
May-08/p.2
Partners in Protection
Pillar Two – Customs to Business Partnership
“Each Customs administration will establish a partnership with the private sector in order to involve it in ensuring the safety and security of the international trade supply chain. The main focus of this pillar is the creation of an international system for identifying private businesses that offer a high degree of security guarantees in respect of their role in the supply chain. These business partners should receive tangible benefits in such partnerships in the form of expedited processing and other measures.”*
“Partnership” means there will be involvement of both parties to meet the shared goalsDevelops new requirements for the business sector to understand and participate in securityEstablishes new roles for Customs agencies to cooperate with, educate and work together with private sector for Security purposes
* Pillar Two –
SAFE Framework
May-08/p.3
Trends in Supply Chain Security Compliance
National Compliance ProgramsRegional Compliance ProgramsIndustry Lead Compliance ProgramsIndividual Company Compliance ProgramsTrade Association Lead Compliance ProgramsProgram Driven Compliance Programs
“Certified Cargo Screening Program (CCSP)”
Third Party Assessments / Audits / ValidationMutual Recognition
100% Air CargoScanning
Requirement
RequirementExceeds
Govt Capacity
RequirementPushed to
Public Sector
GovtRequirementfor oversight
NewCompliance
Program
May-08/p.4
EU
USA
Australia
Canada
Latin America
New Zealand
Sweden
EU AEO
C-TPAT
ACP
PIP
BASC
StairSec
WCO SAFE
Industry - ISO 28000
Tech Mfg TAPA
SEP
Landscape of Growing ‘Voluntary’
Compliance Programs
Trade Assns Self Gen
World Community
Regional
National
Industry
May-08/p.5
Where Compliance Programs Fit In
Layered System –
United States CBP Example
Advance Information Under 24 Hour Rule, Trade Act of 2002National Targeting Center – Advanced Targeting SystemCustoms Trade Partnership Against Terrorism (C-TPAT)Container Security Initiative (CSI)Use of Non-Intrusive Inspection Technology and Mandatory Exams for All High Risk ShipmentsAutomated Commercial Environment
“…establish a partnership with the private sector in order to involve it in ensuring the safety and security of the international trade supply chain.”
May-08/p.6
Selling ‘Voluntary’
Compliance Programs
http://www.customs.ustreas.gov/linkhandler/cgov/import/commercial_enforcement/ctpat/ctpat_
cost_survey.ctt/ctpat_cost_survey.pdf
Most important question – Why invest?Quantifiable return on investment (ROI)Many studies conductedHard to quantify benefit of ‘deterrence’Indirect benefits more palpable
May-08/p.7
Motivation for Joining C-TPAT
May-08/p.8
Positive Response –
Value Added
Difficult to measure deterrence, but…
…other valuable benefits and aspects can be quantified.US CBP
May-08/p.9
Private Sector Perspective –
Benefits & Value
What should the private sector expect from participation in Compliance Programs?-
Overcoming ‘newness’-
Accepting the requirements
Negative perceptionsAdditional costNo value addedBureaucratic‘Partnership’ concept
Direct and indirect benefitsSecuritySafetyReputationCompetitive advantageFacilitationTransparencyEfficiencyReliability / predictabilityEconomyReduced insurance ratesPost-incident Head-of-the-line
May-08/p.10
How Will Compliance Programs Be Managed?
IssuesGlobal nature of trade – global requirement – millions of participants‘National Security’ purpose – government responsibilityValue propositionGovernment bandwidth and budgetVoluntary vs. regulatory
Moving ForwardSeveral different models – same basic goalHigh degree of overlap between modelsMutual recognition initiativesPrivate sector buy-inGovernment - Third Party initiatives
May-08/p.11
Third Party Validators
“Third party validator : any manner of outside (non-Customs) entity that is employed to assist a Customs administration
in the accomplishment of security risk assessment reviews and related validation procedures...”
-
Concept of Third Party use is well established within governments worldwide-
How can Third Parties can add value?
Bandwidth – capacity to meet demand (force multiplier)ResponsivenessEconomy – outsourcing this mission can be cost effectiveTechnical expertise – “Security” is a new mission for manyOversight – easier to manage than to operateProcess Integrity – may preclude conflicts, improve impartialityEconomy – may cost more up front, but more effective in long term
Strengthens ‘Partnership’ with private sector
May-08/p.12
Private Sector Perspective
Why would the private sector support the use of a third party?-
Overcoming ‘newness’-
Accepting the requirement
Not within core competencyResponsivenessExpertise and experienceMultiple standards capability (C-TPAT, ISO 28000, AEO concurrently e.g.)ImpartialityFlexibilityEducational capacityPreparatory services – pre-assessments, coachingFollow on services – deficiency managementAdditional supply chain security servicesOffset / subsidy
May-08/p.13
Third Party Qualifications
Integrity Experience and qualificationsIndustry involvementGovernment vettingNetworkBandwidthFlexibility
Recognized as an important tool by the WCO, Third Party support programs are a new concept being applied to evolving supply chain security programs. Growing pains, learning curves abound in both the public and private sectors.
Cotecna is proud to be one of the trusted Partners in Protection
to Customs agencies worldwide!
May-08/p.14
Thank You!
Supporting Global Trade with nearly 100 Offices in 80 Countries with over 4000 Employees and Agents
0
May-08/p.15
For further information please email COSEC at
COSEC US / Cotecna, Inc.:Tel: +1-202-333-2540
The Flour Mill Building
1000 Potomac Street NW
Washington, DC 20007
Mr. Daine Eisold, VP Supply Chain Security−
Mobile: +1-703-869-3336
Contact information
