Forrester recommends corrective-action program to protect freight transportation
By Staff -- Manufacturing Business Technology, 1/1/2005 12:00:00 AM
Extended global supply chains may be needed and they may be what the future looks like, but according to a recent "best practices" note by Cambridge, Mass.-based Forrester Research, in their present form they become the prime point of vulnerability to homeland security.
The October report—authored by Forrester's Noha Tohamy, a principal analyst—asserts that the next terrorist attack is likely to be staged through a supply chain. While gains have been made in securing vulnerable points by screening airline passengers and securing airports, security experts predict the most likely avenue of attack will exploit freight transportation.
Seaports are most vulnerable, with 80 percent of all global freight arriving by sea. A catastrophic event could "paralyze the economy," the report states. For example, the West Coast dock strike in 2002 racked up $2-billion-per-day losses, and it required weeks to unsnarl the backlog of traffic created by the 10-day shutdown.
The Department of Homeland Security, the Transportation Security Administration, and U.S. Customs & Border Protection have taken a variety of steps based on programs that include the Customs-Trade Partnership Against Terrorism, as well as Operation Safe Commerce initiative. Working with private industry, the government seeks to:
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Create virtual borders offshore and initiate freight inspection at foreign ports, "making U.S. ports the last line of defense."
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Access and assess supply chain shipment data sooner, leveraging the 24-Hour Advance Manifest Rule that requires submission of cargo declarations before loading.
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Target high-risk freight, based in part on assessment of importers' security standings. Currently it is impossible to inspect and certify every container due to technology and manpower constraints.
The Forrester report also indicates glaring weaknesses that must be addressed, including:
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Most initiatives are voluntary. Customs seeks to test and evaluate initiatives for effectiveness through willing participation of private industry before broadly mandating requirements.
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Funding for security currently falls primarily on states and private enterprise.
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Self-certification and one-time inspection of importers' procedures leaves the possibility that terrorists can infiltrate and compromise the process.
Forrester recommends the government move quickly to assess current initiatives and launch a corrective program to secure our global supply chains. Key recommendations include:
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Define minimum mandatory security requirements for all importers.
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Move beyond pilot efforts and invest in technology that makes full inspection feasible, including low-cost, high-speed gamma-ray inspection and high-accuracy X-ray inspection.
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Establish tangible benefits for new voluntary programs based on business-case ROI.
In summary, Forrester asserts, "The U.S. government must require safeguards at each point that freight can be tampered with...[requiring] visibility and accountability—most likely from importers—starting with the original manufacturer all the way to the end customer."
The report also stresses that 3PL providers, "like DHL, which has been fortifying its multimodal global visibility network with advanced technologies like active RFID," are likely to play vital roles in furnishing the global technology and operations infrastructure necessary to ensuring supply chain security.
