Page 328 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Unit 14: Supply Chain Logistics Administration

It is often said that a chain is only as strong as its weakest link. Securing the supply chain Notes
involves the securing of every node and link along the chain, creating a chain of responsibility
that extends beyond that of each individual node and its links. The securing of the supply chain
must start with the safe and secure packing of shipment and include measures that deter or
provide alerts of any tampering of the shipment as it progressively moves from the point of
packing to the final point of deconsolidation.

Several countries and international organisations have developed or are developing programmes
that encompass guidelines and best practices for ensuring the security of the cargo, processes,
and personnel involved in every movement through the supply chain. The following are some
examples of supply chain security programmes:

 United States’ Customs-Trade Partnership Against Terrorism (C-TPAT)
 European Union Authorised Economic Operator (AEO) programme

 New Zealand’s Secure Exports Scheme
 WCO Framework of Standards to Secure and Facilitate Global Trade

 ISO/PAS 28000, 28001

Did u know? In July 2006, Singapore announced the implementation of a National Supply
Chain Security Programme which has been named as the Secure Trade Partnership (STP).

Self Assessment

Fill in the blanks:

13 …………………… refers to efforts to enhance the security of the supply chain, the transport
and logistics system for the world’s cargo.

14. …………………… is one of the key drivers of global economic growth.
15. …………………… the supply chain involves the securing of every node and link along the
chain, creating a chain of responsibility that extends beyond that of each individual node
and its links.

16. In today’s globalised world, the …………………… supply chains are complex and involve
a great number and variety of parties.



Case Study TÜV Rheinland – Supply Chain Security Analysis

n April 2007, TÜV Rheinland began an intensive 2 week project for one of the worlds
top 10 IT and computer peripheral manufacturers. In the US alone, the company was
Iloosing 5 million dollars a year from stolen cargo, with the majority disappearing
between the Port of Houston and the Port of Los Angeles. In order to take a proactive step
towards controlling their supply chain, TÜV Rheinland was asked to conduct a thorough
Supply Chain Security Analysis to help pinpoint weaknesses and suggest corrective and
preventative actions.
Contd...

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