Best Practices Putting “Best Practices” into Practice

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  • Best PracticesPutting Best Practices into Practice

  • At a Glance:

    Supply Chain Custodians

  • Supply Chain CustodiansAnjo City, JapanTransmissions are loaded into containersContainer sealedTransmissions convoy to the Port of NagoyaInland DrayContainer storage at Port of Nagoya Inland Dray Origin FactoryPackagingStuffingInspect & LoadTransfer Custodian from factory to terminal, Known or Unknown PartnerInspect, StuffingSeal Controls

    Container moves from Port of Nagoya to Port of SeattleOceanContainers are unloaded at APL terminalPort of SeattleDrayed (in-bond) via trucking company to Vancouver, Canada TruckContainer moves from port to port to discharge port in USOceanContainers unloaded, out gate process and visibility at arriving terminalPort of ArrivalPort of ArrivalDrayed (in-bond) from terminal to rail or direct to factory TruckContainers are moved to truckConsolidationContainers are loaded at the terminalGate in Process and visibility at Terminal Port of ExportContainers are shuttled in a just-in-time and in-sequence process to the General Motors plantGM Factory CA Toronto, CanadaContainers are unloaded at a railhead at Toronto, CanadaContainers are drayed from railhead to GM inventory yardTruckCNRailContainers are drayed via rail from Vancouver to Toronto, CanadaContainers, seal removed, unloaded, products moved to factoryFactory or RDCDestination TerminalContainers are unloaded, out gated visibility and statusContainers are drayed from rail to factory, DC, Known PartnerTruckRailRail transit and visibility, arrivalContainers are transferred to Canadian National Railroad (CN)Vancouver, CanadaCNContainers are transferred to rail, in gate visibilityInland Rail

  • The term Best Practices has become the Change Management of the 90s

  • Although now, in the 00 decade, the ultimate question is this:

  • Although now, in the 00 decade, the ultimate question is this:

    Whats in it for me?

  • C-TPAT BenefitsTier One (Certified):Meaningful reduced inspection benefitsTier Two (Validated/Minimum Security):Greater examination reductionsFor former Low Risk importers, this represents a Business as Usual equation and seems to be in name only as a benefit.

  • C-TPAT BenefitsTier Three (Validated/Best Practices):Front of the line status for all examsFront of the line status in the event of a port shut-downElimination of all but statistically selected cargo examinations This is where the real benefits are being realized, from the perspective of Trade

  • C-TPAT BenefitsQuantifiable 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

  • C-TPAT BenefitsQuantifiable Examination Benefits:

    Annual exam ratio:50 per yearWithout C-TPAT:350 per yearAverage exam cost:$500 per examAnnual savings:$150K

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

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

  • Best PracticesWHEREAS 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;

  • Best PracticesWHEREAS 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);

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

  • Best PracticesFrom 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

  • Best PracticesHold 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.

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

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

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

  • Best PracticesMeasurement of empty trailers/containers prior to stuffing to identify false walls, ceilings, etc.

    Now a requirement under the March 25 Importer Requirements

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

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

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

  • Best PracticesAdd to social compliance checks upon factory evaluation.

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

  • Best PracticesUse 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).

  • Best PracticesElectronic 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).

  • Best Practices from CBPCBP 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

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