Supply Chain Security in Practice

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Supply Chain Security in Practice
Peter Dumoulin
Corporate Export Controls
Supply Chain Security
2005-02-18
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Security Standards

• US C-TPAT
• US C-TPAT plus
• European Airfreight Law
• StairSec in Sweden
• TAPA
• Asian Pacific Economic Cooperation (APEC) Private
  Sector Supply Chain Security Guidelines,
  voluntary
• World Customs Organisation (WCO) sector specific
  guidelines for Customs-Business Partnership
• WCO Framework of Standards to Secure and
  Facilitate Global Trade

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Corporate Export Controls Peter Dumoulin
2005-02-18
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Supply chain security

• Facility security
• Access control, Physical security, Risk
  management
• Shipping and receiving controls
• Information security
• Documents, Automation systems
• Personnel security
• Own personnel, Temporarily Personnel
• The selection of service providers
• Transport, Suppliers, outsourced manufacturing
  and warehousing, etc
• Requirements for service providers when selected
• Internal controls
• Documentation

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Corporate Export Controls Peter Dumoulin
2005-02-18
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The Goal of Supply Chain Security

• Simply said
• What is written on the box label must be in the
  box
• What is in the box must be labelled
• No unauthorised access to the goods flow is
  allowed
• No malversation with documents
• Personnel that is authorised should be secure
• Well documented procedures, which are auditable.

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Corporate Export Controls Peter Dumoulin
2004-November Lighting
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Supply Chain Security

• Agree upon which standard(s) should be used
• Agree upon an own dedicated standard that fits
  you. Make examples of possible answers
• The implementation of Supply Chain Security for
  players can be different. As players are
  different.
• In size, organisation, equipment etc

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Corporate Export Controls Peter Dumoulin
2005-02-18
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Supply Chain Security

• Implementation of Hardware ??
• Implementation of organisatorial measures ??
• Analyse what you want to secure
• Keep both feet on the ground!!!!!!!!!

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Corporate Export Controls Peter Dumoulin
2005-02-18
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Supply Chain Security

• One single measure will not bring you Supply
  Chain Security
• Several measures taken together must ensure a
  good supply chain security
• Essential are the Risk assessments, written
  procedures and responsibilities in Job
  descriptions
• Small supplier example

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Corporate Export Controls Peter Dumoulin
2004-November Lighting
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Supply Chain Security

• The implementation of security measures requires
• Continuous attention of management.
• Awareness in the organisation.
• Training
• Knowing the procedures. And agree on these
  procedures
• Role of people involved (job descriptions)
• Discipline to stick to agreed procedures. Even
  during breaks

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Corporate Export Controls Peter Dumoulin
2004-November Lighting
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Supply Chain Security

• Document all procedures and measurements taken.
• Make one file which covers all procedures
• For procedures existing already (as guarding
  procedures or as ISO 9000 or other files) just
  make a reference where to find them.
• Procedures are the basis for Audits or other
  (governmental) reviews.

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Corporate Export Controls Peter Dumoulin
2004-November Lighting
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Monitoring the Process

• Supply Chain Security is very down to earth an
  operational issue in every production/storage/ship
  ping area of the business.
• If you want to become Authorised Economic
  Operator (trusted company by customs) you have to
  address all locations involved in the
  international goods flow, get the status quo, get
  enhancement programs etc

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Corporate Export Controls Peter Dumoulin
2005-02-18
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Monitoring the Process

• Organise teams in every unit that
• Analyses the goods flow of the unit and determine
  areas to be secured
• Answers the questions of the agreed
  questionnaire. The questionnaire has to be used
  as a guideline.
• A one man show does not fit

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Corporate Export Controls Peter Dumoulin
2005-02-18
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Monitoring the process

• Keep track of status Quo of all sites involved
• Keep track of all enhancement programs and its
  planning. Have the management aware that
  investments sometimes are needed.
• Audit/review the units
• The questionnaire should underlie an ongoing
  review and being enhanced when necessary
• Require every two years a new analyses of the unit

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Corporate Export Controls Peter Dumoulin
2005-02-18
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Cost

• Yes Supply chain security cost money
• 2/3 days analyses per plant performed by 4-5
  people
• Implementation of enhancement programs
• Investments when necessary
• Monitoring all this
• Reviews/audits
• It depends on what you have already and what
  should be enhanced.

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Corporate Export Controls Peter Dumoulin
2005-02-18