Tuesday, March 14, 2006

New research on supply chain vulnerability

Using GPS technology, the U.S. Department of Homeland Security tracked cargo from several companies between 2002 and 2005. The goal of the project, named Operation Safe Commerce, was to identify weak links in the supply chain. According to a Feb. 28 report on ComputerPartner.com, the conclusion that is being drawn from this report is that "companies actually know very little about what goes on in their supply chains." The article cited unsafe practices such as: truckers dropping off containers without ever encountering terminal security, containers left in unsecured areas, and containers bypassing a port that's considered safe and traveling instead through a country that poses a greater threat -- without either the company or U.S. Customs and Border Protection being informed.

According to Industry Week, These practices will soon come under closer scrutiny, according to the article, as the government demands more information about the supply chain. While compliance with the Customs-Trade Partnership Against Terrorism, or C-TPAT, which requires that companies take responsibility for the security of their supply chain, is currently voluntary, it is believed that soon all companies will be required to participate. To view the full article which provides a detailed analysis of upcoming regulations visit: http://www.computerpartner.nl/article.php?news=int&id=2632