Best Practices

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Best Practices

• Putting Best Practices into Practice

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At a GlanceSupply Chain Custodians
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Supply Chain Custodians
Anjo City, Japan
Inland Dray
Inland Dray
Origin Factory
Inspect Load
Consolidation
Port of Export

• Transmissions are loaded into containers
• Container sealed

• Packaging
• Stuffing

• Transmissions convoy to the Port of Nagoya

• Container storage at Port of Nagoya

Transfer Custodian from factory to terminal,
Known or Unknown Partner

• Inspect, Stuffing
• Seal Controls

• Containers are loaded at the terminal

• Gate in Process and visibility at Terminal

Ocean
Port of Seattle
Truck
Ocean
Port of Arrival
Truck
Vancouver, Canada
Inland Rail
Port of Arrival
CN

• Containers are unloaded at APL terminal

• Containers unloaded, out gate process and
  visibility at arriving terminal

• Drayed (in-bond) via trucking company to
  Vancouver, Canada

• Drayed (in-bond) from terminal to rail or direct
  to factory

• Containers are transferred to Canadian National
  Railroad (CN)

• Containers are transferred to rail, in gate
  visibility

• Container moves from Port of Nagoya to Port of
  Seattle

• Container moves from port to port to discharge
  port in US

• Containers are moved to truck

Rail
Rail
GM Factory CA
Toronto, Canada
Truck
Factory or RDC
Destination Terminal
Truck
CN

• Containers are drayed via rail from Vancouver to
  Toronto, Canada

• Containers are shuttled in a just-in-time and
  in-sequence process to the General Motors plant

• Containers are unloaded at a railhead at
  Toronto, Canada

• Containers are drayed from railhead to GM
  inventory yard

• Containers, seal removed, unloaded, products
  moved to factory

• Containers are unloaded, out gated visibility and
  status

• Containers are drayed from rail to factory, DC,
  Known Partner

• Rail transit and visibility, arrival

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The term Best Practices has become the Change
Management of the 90s
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• Although now, in the 00 decade, the ultimate
  question is this

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• Although now, in the 00 decade, the ultimate
  question is this
• Whats in it for me?

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C-TPAT Benefits

• Tier One (Certified)
• Meaningful reduced inspection benefits
• Tier Two (Validated/Minimum Security)
• Greater examination reductions
• For former Low Risk importers, this represents
  a Business as Usual equation and seems to be in
  name only as a benefit.

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C-TPAT Benefits

• Tier Three (Validated/Best Practices)
• Front of the line status for all exams
• Front of the line status in the event of a port
  shut-down
• Elimination of all but statistically selected
  cargo examinations
• This is where the real benefits are being
  realized, from the perspective of Trade

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C-TPAT Benefits

• Quantifiable Examination Benefits
• C-TPAT importers are 7 times less likely to
  receive cargo examination. Determine your company
  exam ratio, determine the cost per exam, then
  configure the amount of exams that you are not
  incurring due to C-TPAT

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C-TPAT Benefits

• Quantifiable Examination Benefits
• Annual exam ratio 50 per year
• Without C-TPAT 350 per year
• Average exam cost 500 per exam
• Annual savings 150K

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Best Practices

• What are They and Suggestions on Implementing
  Them into your Supply Chain Processes

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Best Practices

• Require the adoption of C-TPAT security measures
  throughout a companys entire international
  supply chain through contractual means.

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Best Practices

• WHEREAS Company X and its parent corporation
  joined the Customs-Trade Partnership Against
  Terrorism (C-TPAT), a voluntary program
  initiated by United States Bureau of Customs and
  Border Protection, a department within the United
  States Department of Homeland Security
• WHEREAS the C-TPAT program is a voluntary program
  with mandatory requirements and is dedicated to
  increasing border security, preventing terrorist
  activities, and maintaining the free and safe
  flow of goods into the United States

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Best Practices

• WHEREAS Company X is committed to obtaining a
  compliance commitment by all parties involved in
  the international supply chain (a) to comply
  with all laws (b) to abide by all safety and
  security programs and inspections (hereinafter
  collectively Security Programs), whether
  mandatory or voluntarily requested by any
  governmental entity and/or by Company X and/or
  its parent corporation and (c) to comply with
  the Statement of Business Ethics of Company X
  and/or its parent corporation and all Vendor
  Guidelines (all collectively referred to as
  Vendor Requirements)

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Best Practices

• Active involvement in the security enhancement
  process by senior company leaders/management.

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Best Practices

• From Statement of Corporate Policy
• Additionally, as a participant of the
  Customs-Trade Partnership Against Terrorism
  (C-TPAT) program, Company X commits to working
  diligently in concert with its vendors and their
  factories, forwarders, consolidators, customs
  brokers, carriers, and any other relevant service
  provider to establish controls related to cargo
  security initiatives

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Best Practices

• Hold quarterly or bi-annual meetings with Senior
  Management to brief them on C-TPAT initiatives,
  challenges, accomplishments, etc.
• Memorialize these discussions.
• Incorporate C-TPAT objectives into job
  responsibilities or annual goals.

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Best Practices

• Use of GPS tracking devises, particularly in the
  trucking environment.

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Best Practices

• Security escorts of trucks to the border/port,
  particularly in high risk environments.

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Best Practices

• Perimeter fencing with magnetic sensors that
  activate if pressure is applied against the fence.

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Best Practices

• Measurement of empty trailers/containers prior to
  stuffing to identify false walls, ceilings, etc.
• Now a requirement under the March 25 Importer
  Requirements

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Best Practices

• Create a Container Inspection Form for factory
  to complete upon loading of container, and
  require submission of same via letter of credit.

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Best Practices

• Multi-level encrypted IT security systems which
  restrict employees access to only certain
  information based on their job responsibilities.

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Best Practices

• Criminal background checks on all employees, to
  the extent permitted by foreign laws/regulations.

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Best Practices

• Add to social compliance checks upon factory
  evaluation.

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Best Practices

• Screening procedures for new clients, suppliers,
  manufacturers, etc. which go beyond financial
  stability measures to include security related
  indicators.

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Best Practices

• Use of container sealing devises which exceed the
  current minimum PAS ISO 17712 standards, for
  example the use of cable seals around the J
  bars or sea lock devises and the use of
  container security device technologies (as they
  become more mainstream and reliable).

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Best Practices

• Electronic transmission of entry level import
  data as early in the importation process as
  possible, preferably prior to loading the cargo
  (i.e. at the 24 Hour Rule timeline).

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Best Practices from CBP

• CBP has committed to compiling and distributing
  extensive Best Practices to C-TPAT members.
• In final approval process, soon to be printed and
  mailed to Primary C-TPAT contact.
• 100 plus pages