Page 330 - DMGT523_LOGISTICS_AND_SUPPLY_CHAIN_MANAGEMENT

Unit 14: Supply Chain Logistics Administration

 Stops near residential areas Notes
 Regular scheduled stops
 Unlocked containers
 Unmanned trains

Phase 3:
The team analyzed all the information that was collected in Phase 2, and provided a report
outlining possible corrective actions. Using a combination of international security
standards, industry best practice, regional legislative documentation and experience, the
team provided solutions that would secure the supply chain, as well as provide increased
visibility and efficiency, ultimately preventing/limiting the amount of cargo theft in the
future. An example of a weakness discovered, was the failure to understand all the external
processes. The client did not realize that once sealed containers are opened by customs,
customs agents do not refit the container with a secure seal.

Customs inspections can take place at any point in the supply chain, meaning that in some
cases containers travelled the length of the county with no seals.
Some of the other findings included;

 Adopting C-TPAT guidelines to reduce customs clearance times and therefore saving
costs

 Provide all logistics partners with a set of minimum security requirements
 Seal containers with highly secure locks, at a cost of less than 5 USD per container
 Wrap all products with non-descriptive plastic in order to confuse potential criminals
 Implement some form of Information Security system to ensure that product
information and transportation routes are not accessible to unauthorized personnel
Following the completion of the project, the company has now rolled out a detailed set of
security standards for all suppliers. This security standard is part of all project tenders and
is necessary for business. The client has also developed a stronger relationship with customs,
ensuring that containers are resealed and has also resulted in the reduction of inspections
at points of entry by almost 80 percent. The customer has also been successfully certified
to the US Customs C-TPAT security scheme. The client has also invested in a new type of
security seal for their containers. During our last communication with the customer they
announced that theft had been reduced by over 90% since the implementation of the above
security measures.
Question
Critically analyse the above case.
Source: www.brm.tuv.com/brm/web/downloadcasestudies.xml?

14.5 Summary

 Relationships have traditionally been considered as intangible.
 Relational assets have become increasingly important to organizations as one of the
impacts of the internet has been to move the market and its value drivers into the desires
and ambitions of the stakeholders.

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