Ask anyone in the transportation and
logistics industry and they will agree
that, unless airtight security procedures are strictly maintained and enforced
throughout the supply chain, freight systems are vulnerable to potential disruption
by criminal and/or terrorist groups.
“This is not a revolutionary concept —
transportation and logistics companies have
always focused on supply chain security
and loss prevention initiatives,” says Sandy
Gregory, director of corporate operations
for AIT Worldwide Logistics, Inc. “However,
adapting to these mandates and keeping in
compliance with the various government
regulations intended to assist in securing
the supply chain is not always easy.”
Smart Business sat down with Gregory to
discuss how to efficiently secure the global
supply chain without impeding commerce.
What do you consider the largest supply
chain security challenge faced by the industry today?
In today’s world, terrorism is at the fore-front of security concerns. Securing the
nation’s transportation systems suddenly
received an unprecedented heightened
sense of urgency and importance after the
terrorist attacks on Sept. 11, 2001. It wasn’t
just the passenger side of the business that
was impacted; the freight-forwarding community became subject to stringent security
measures that drastically transformed the
way we conducted our day-to-day business.
Prior to Sept. 11, concerns related to supply chain security focused on loss prevention, controlling theft and reducing the
introduction of contraband, mainly illegal
drugs. Since Sept. 11, screening cargo for
IEDs, weapons of mass destruction or terrorist interference has become the pivotal
focus of our industry.
Many programs have been put into place
by the government, such as C-TPAT
(Customs Trade Partnership Against
Terrorism) and the TSA SSP (Transportation Security Administration Standard
Security Program), in addition to the mandates required of our industry every day by
the Department of State, Department of
Commerce and more.
Embracing these initiatives is a complex process. In a business based on time-sensitivity and customer satisfaction, you must
ask yourself: How are we going to comply
with all of these industry regulations and be
cost-effective while still delivering the cargo
on time?
How do you address, contend with and alleviate these concerns, issues and realities?
Communication is the key to maintaining
compliance and eliminating potential problems before they begin. Employees must
consistently be aware of the ever-changing
regulations, in addition to knowing how to
comply with them, so they can focus on
delivering customers’ cargo efficiently,
securely and on time.
By utilizing multiple tools and resources to
communicate to your employees and customers on the various initiatives and
changes that take place every single day,
you can drastically reduce your company’s
theft, loss and overhead.
IT solutions are a tremendous help in
keeping your internal and external operating systems updated with programming that
automates and streamlines many of the details, processes, procedures and policies
involved in these security initiatives.
And, if the automation isn’t enough,
ensure that you have a team of trained and
knowledgeable employees in place who are
devoted to constantly reviewing the new
government initiatives and regulations.
What role should freight forwarders take not
only to meet all governmental mandates, but
to maintain positive relationships with these
agencies?
I truly believe that establishing positive
working relationships with the regulatory
governmental agencies is a tremendous
benefit to your company. By working
together on multiple issues, the government
obtains a much better understanding of the
transportation industry, and they can then
apply this knowledge in developing future
security programs of mutual benefit to you
and your customers.
Taking a proactive approach in the claims
and security process in order to protect not
only your company but those with whom
you do business is also imperative. Ensure
that the facility itself is secure and you are
using agents and carriers who are also part
of a secure supply chain.
Can you say with a high level of confidence
that it is possible to provide customers with
a secure supply chain?
The only true guarantee anyone can make
to customers is that nothing is ever 100 percent — there are always going to be high-level thieves and criminals or forces beyond
our command and control. I am not expressing this statement as an opinion but rather as
a fact — one that is virtually unavoidable in
any business and certainly not exclusive to
the transportation and logistics industry.
However, I can say with great optimism
and confidence that with the proper
resources and strategies in place, ensuring
a safe and secure global supply chain for
your customers is not only possible but
probable.
SANDY GREGORY is director of corporate operations for AIT Worldwide Logistics, Inc., headquartered in Itasca, Ill. Spanning numerous nationwide locations and an ever-increasing network of international partnerships, the global transportation and logistics provider
delivers tailored solutions for a wide variety of vertical markets and industries. Reach her at www.aitworldwide.com or (800) 669-4AIT.