Table Of ContentSupply Chain Management A
R
The supply chain is a complex system of numerous, integrated stakeholders. These W
stakeholders are responsible for the transportation, storage, documentation, and A
Y
handling of material goods and cargo. Each entity has its own unique relationship
with and role within the chain—as well as its own unique security requirements.
The challenge of trying to secure the supply chain at every level is both a domestic
and global concern. In this global economy, companies must be able to integrate
S
security into supply chain logistics to protect their employees, assets, and clients SUPPLY CHAIN
U
from incidents of theft and other damaging events.
P
Supply Chain Security: A Comprehensive Approach provides security profes- P
SECURITY
sionals the tools necessary to ensure supply chain security. The book demonstrates
L
how to establish and enforce security policies and protocols, including rapid Y
responses that must be deployed in the event of a theft or security incident. Most
importantly, it enables professionals to integrate business practices into the plan- C A Comprehensive Approach
ning, development, and successful operation of supply chains to ensure security
H
and protect assets.
A
I DR. ARTHUR G. ARWAY
Drawn from the experience of a recognized leader in domestic and inter national
N
supply chain logistics, trade, and transportation security, the book illustrates
through a series of case studies how security professionals can institute sound
S
security practices. By demonstrating to their stakeholders and potential customers
E
that they provide a secure environment for materials, products, goods, and cargo,
C
companies can increase their customer base and improve their bottom line.
U
R
I
T
Y
K14857
6000 Broken Sound Parkway, NW
Suite 300, Boca Raton, FL 33487 ISBN: 978-1-4665-1187-3
711 Third Avenue 90000
New York, NY 10017
an informa business
2 Park Square, Milton Park
www.taylorandfrancisgroup.com Abingdon, Oxon OX14 4RN, UK
9 781466 511873
w w w. c r c p r e s s . c o m
K14857 cvr mech.indd 1 1/3/13 12:03 PM
SUPPLY CHAIN
SECURITY
A Comprehensive Approach
SUPPLY CHAIN
SECURITY
A Comprehensive Approach
DR. ARTHUR G. ARWAY
CRC Press
Taylor & Francis Group
6000 Broken Sound Parkway NW, Suite 300
Boca Raton, FL 33487-2742
© 2013 by Taylor & Francis Group, LLC
CRC Press is an imprint of Taylor & Francis Group, an Informa business
No claim to original U.S. Government works
Version Date: 20130114
International Standard Book Number-13: 978-1-4665-1190-3 (eBook - PDF)
This book contains information obtained from authentic and highly regarded sources. Reasonable
efforts have been made to publish reliable data and information, but the author and publisher cannot
assume responsibility for the validity of all materials or the consequences of their use. The authors and
publishers have attempted to trace the copyright holders of all material reproduced in this publication
and apologize to copyright holders if permission to publish in this form has not been obtained. If any
copyright material has not been acknowledged please write and let us know so we may rectify in any
future reprint.
Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced,
transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or
hereafter invented, including photocopying, microfilming, and recording, or in any information stor-
age or retrieval system, without written permission from the publishers.
For permission to photocopy or use material electronically from this work, please access www.copy-
right.com (http://www.copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222
Rosewood Drive, Danvers, MA 01923, 978-750-8400. CCC is a not-for-profit organization that pro-
vides licenses and registration for a variety of users. For organizations that have been granted a pho-
tocopy license by the CCC, a separate system of payment has been arranged.
Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are
used only for identification and explanation without intent to infringe.
Visit the Taylor & Francis Web site at
http://www.taylorandfrancis.com
and the CRC Press Web site at
http://www.crcpress.com
To Bob Ghan, Nick DiRaimondo, Enrique Gonzalez,
and Bryan Hrapchak—the best supply chain security
practitioners in the business who taught me well.
And to my wife and honey, Dr. Rosemary Arway, who
encouraged me to move forward with this book.
Thank you.
© 2010 Taylor & Francis Group, LLC
Contents
List of figures xi
About the Author xiii
introduction xv
PArt i WhAt is suPPLy chAin security?
chAPter 1 WhAt is A suPPLy chAin? 3
1.1 Origin 3
1.2 Manufacturing/Suppliers 4
1.3 Handoffs 5
1.4 Initial Service Provider 6
1.5 Service Providers 6
1.6 Trucking 6
1.7 Ocean Shipping 8
1.8 Airlines 9
1.9 Third-Party Logistics Providers 12
1.10 PODs 13
chAPter 2 eLements thAt imPAct the suPPLy chAin 15
2.1 Operations 17
2.2 Contracts 18
2.3 Customer Demands, Written and Nonwritten 19
2.4 Provider Capability 21
2.5 Geography 22
2.6 Force Majeure/Acts of God 23
2.7 Crime 24
© 2010 Taylor & Francis Group, LLC vii
viii Contents
2.8 Volume 28
2.9 Storage Capacity 29
2.10 Government Controls 30
References 31
chAPter 3 security: suPPLy chAin versus corPorAte 33
3.1 Focus of the Program 33
3.2 Corporate Culture 34
3.3 Supplier and Provider Relationships 35
References 36
PArt ii deveLoPing A suPPLy chAin
security ProgrAm
chAPter 4 security for Key LinKs in the chAin 39
4.1 Origin 39
4.1.1 Security Reviews of Origin 40
4.2 Actions 41
4.3 Customers 42
4.4 Providers 43
4.4.1 Provider Security Review 45
4.4.2 CCTV 45
4.4.3 Access Controls 46
4.4.4 Intrusion Alarms 46
4.5 Storage and Distribution 47
4.5.1 Security Review of Facility and Location 48
4.5.2 Transportation Security Review 49
4.5.2.1 Basics for Transportation 49
4.5.3 Shipping and Receiving 50
4.6 Destination Concerns 56
chAPter 5 eLements of A successfuL suPPLy chAin
security ProgrAm 59
5.1 Goal of the Supply Chain Security Program 59
5.2 Theft and Pilferage 60
5.2.1 Smuggling and Contamination 61
5.2.2 Antiterrorism 63
5.3 Government Supply Chain Security Program
Compliance 64
5.4 Customer Contractual Obligations 65
5.5 Risk Management 67
5.6 Industry Positioning and Branding 68
5.7 Marketing and Sales 70
References 71
chAPter 6 methodoLogy for suPPLy chAin security 73
6.1 Integration into the Business 73
6.2 Business Unit Support 74
© 2010 Taylor & Francis Group, LLC
