supply chain security
and the warehouse

A DECADE AGO, SUPPLY CHAIN SECURITY MEANT something very different than it does today. Back then, the focus of most security programs was squarely on the basics: protecting people, products, property, and information.

But 9/11 changed all that. In the wake of the terrorist attacks, the government stepped into the picture, introducing a host of programs aimed at patching vul-nerabilities in the nation’s transportation system— and by extension, the commercial supply chain. In so doing, it redefined the supply chain security challenge. These days, it’s not just about protecting people and things; it’s also about complying with an array of cargo screening, supply chain credentialing, container inspection, and advance notification requirements (think TWIC, ISF, CSI, PortSTEP, or ACSI).

While many of these initiatives center on the transportation link in the supply chain, warehouse and DC operations shouldn’t assume they’re off the hook. With some of these programs, there’s a good chance they’ll be lured into the process as well. A prime example is the Customs-Trade Partnership Against Terrorism (C-TPAT).

Launched by Customs and Border Protection (CBP) in November 2001, C-TPAT is a far-reaching initia-tive aimed at getting U.S. companies to shoulder part of the supply chain security burden, thereby allowing Customs to concentrate its limited inspectional resources on higher-risk shipments. In a nutshell, C-TPAT participants agree to police their own supply chains, attesting that they have strict security procedures in place at every stage in a container’s journey, in return for a reduced risk of cargo inspections (and preferen-tial treatment if their containers do get pulled aside for examination).

At first glance, C-TPAT appears to be all about car-
riers, NVOCCs and ocean transport intermediaries,
and customs brokers. But the truth is, it could have
important impacts on warehouses and distribution
centers as well. Of the dozen classes of businesses eli-
gible to join C-TPAT, the first listed is U.S. Importers
of Record. Asset-based third-party logistics service
providers and Canadian and Mexican manufacturers
are also included, and other foreign manufacturers are
likely to be added over time.

Getting certified

Let’s say a company decides to pursue C-TPAT certification for one of its warehouses or distribution centers. What kind of changes would that mean for the operation? It all depends on the activity. For instance, there would likely be little effect on order fulfillment processes and procedures. But there’s a better-than-even chance that existing security measures would