Page 46 - Inbound Logistics | April 2017 | Digital Issue

SC SECURITY

BY JEAN-PIERRE GERONIMI
Jean-Pierre Geronimi is Director, Global Trade Academy, Amber Road
JeanPierreGeronimi@AmberRoad.com | 609-896-2020

5 Ways to Cut the Risk of Cargo Theft

isk models provide a key advantage to firms operating 3. Identify and manage all
globally, and are the first step in identifying key trade business partners. Primary and
R lanes, business partners, and the areas most likely to secondary business partners are
often easy to identify. However,
cause harm. The more you know, the easier it is to manage service agents often subcontract.
the risk. Best practices in this area include
auditing service providers and the
While risk modeling is an important Typical firms address the most glar- procedures they have in place for
part of the Customs-Trade Partnership ing security needs, such as physical choosing subcontractors.
Against Terrorism (C-TPAT), few com- and access controls. Yet often, while 4. Manage the routing. Direct
panies use the information to identify the front door is locked, the back- routing may not always be possi-
threats within their supply chain by door staging area is rife with access ble. When it isn’t, does your team
trade lane, and their vulnerability points for unscrupulous agents. know how the cargo is arriving?
against those threats. Part of threat To reduce risk, follow these five Firms with advanced cargo security
analysis includes how the shipment is sound security practices. programs monitor everything from
routed, the number of stops it makes, 1. Know the minimum security the routing of product to managing
and identifying each player in the sup- guidelines. C-TPAT is a trust and ver- the transit time. Taking measures
ply chain. ify program with U.S. Customs and to control product routing reduces
Border Protection (CBP) validations the risk of loss while the product is
What’s Working, occurring every three to four years. in transit.
What’s Not? Many firms flunk the annual train- 5. Automate for greater visibil-
In 2017, the C-TPAT will celebrate ing and brush up their program in ity. A holistic approach to cargo
its 15th year. It was the first program advance of a CBP validation meeting. security includes the ability to
to formally present minimum security Be prepared with ongoing training see your product at all stages of
guidelines for U.S. importers. It and monitoring. transportation and distribution.
later expanded to include exporters, 2. Update your risk model. Risks Updating automation capabilities
and became the catalyst for similar within supply chains change, even if to include visibility from the sup-
programs around the world. your trade lanes don’t. At a minimum, plier to your warehouse is critical to
Yet in 2016, cargo theft topped an annual risk model review is neces- managing risk and monitoring busi-
$26 billion, according to the British sary to consider where you conduct ness partners.
Standards Institute, and the long- business, and any changes that may These five steps, along with a
standing trends of drug smuggling, cause your firm to be a target. Best program to fully implement C-TPAT
human trafficking, and phishing practices include risk model reviews minimum security guidelines, will
scams are as prevalent today as they more frequently, ideally at least once help reduce your risk of cargo theft
were 15 years ago. every quarter. or loss. n

44 Inbound Logistics • April 2017