Understanding Your Supply Chain Security

Since 911, the importance of and emphasis on a solid Customs-Trade Partnership Against Terrorist (C-TPAT) program has become a prime area of focus for any company dealing with international trade. And as any good C-TPAT consultant can tell you, a successful supply chain management and security protocol is imperative to loss prevention, C-TPAT, and other mandatory trade security protocols for safe and compliant trade practices. Unfortunately, supply chain logistics and security are highly misunderstood, not only by the average consumer, but by the business community as well. Starting With The Basics: What Is A Supply Chain? Before we can get down to the nitty-gritty of supply chain security, let’s make sure we’re all on the same page with what a supply chain actually is. The supply chain is the entire journey that your product or merchandise makes from its place of manufacture to your company premises. Although it seems like a very practical thing to be aware of, many companies are hazy on the exact details of their supply chain, and this leaves them open to inventory loss and shortages, and trade security and compliance issues- both costly to the yearly bottom line. Supply Chain Security There are three key areas that any successful supply chain security program must address: Vendors/Suppliers: Identifying and verifying the authenticity and professionalism of your product manufacturers and suppliers is vital to your trade security and compliance programs, but this can be deceptively difficult. In many cases, the data sets needed for adequate knowledge and security can pertain to hundreds or even thousands of different manufacturers and suppliers. Often product importation lines are in a constant state of flux, as new supply entities are included or excluded from the supply chain, and some suppliers engage in subcontracting which may or may not be officially reported to the buyer. Being able to accurately identify who is supplying your product and where it is being made is critical to your trade security and compliance, and to that end many companies use specialized software and corporate trade compliance consultation companies to ensure that nothing untoward is going on. PO Awareness: The more key personnel in your product supply chain that you equip with a certified copy of your purchase order, the safer your product supply chain will be- and the easier it will be to identify and rectify any mishap or mishandling that occurs along the way. Requiring the communication, verification and approval of purchase order details throughout the product shipping process is a common sense move that should be put into effect in any security program you develop for your product supply chain. Anomaly Detection: The third integral part of your trade and shipping security program must be a system and strategy for detecting and responding to any anomalies within the product supply chain. Anomalies come in many forms- from the relatively benign human error to pre-meditated criminal activity, and the mark of a good security program is how prepared your company is to find and respond to whatever face they may present.