World Trade - August 2008 - (Page 46)

SECURITY cost structure, or infrastructure, each of these areas faces increased risk of a security breach. Rail, sea, highway, and air carriers have already been incorporated into the C-TPAT program along with importers, marine ports, long haul carriers in Mexico, customs brokers and foreign manufactures. However, without an overarching 3PL deﬁnition, 3PLs must piece together security processes and protocols using the various criteria in order to meet the incredibly diverse range of supply chain activities that we manage and implement for our customers. This results in more interpretation of the criteria and a lack of standardization, which ultimately impacts the overall effectiveness of C-TPAT. Business partner requirements One of the greatest areas of confusion for 3PLs is related to current business partner requirements. The current minimum security criteria states that participating companies need to Ryder System, Inc. those carriers may or may secure their global supply chains not be C-TPAT certiﬁed. and extend security requirements 3PLs must piece • Warehouse management to their supply chain partners. – Many importer facilities This criterion does not specify together security are managed by 3PLs. This domestic versus international means that they often hire processes and protocols partners. So, does an importer and train warehouse staff, need to make sure that its warein order to meet the design the workspace, rechouse in Atlanta, which only ommend equipment and domestic goods, meet incredibly diverse range deals withrequirements? Does a protocols to maximize facility C-TPAT security, and provide security of supply chain activities 3PL have to make sure all partmonitoring services. ners, even domestic carriers, are • Drivers and vehicles – C-TPAT compliant? These are that we manage. Companies who engage the types of questions 3PLs deal 3PLs in a dedicated conwith each day as they try to live tract carriage agreement use drivers employed by up to their security commitments while still meeting custheir outsourced logistics provider. Ryder alone tomer needs. employs over 6,800 drivers that are responsible This will be an important concept for 3PLs to help for transporting goods for more than 700 custom- CBP understand. Meeting the business partner requireers. Approximately 20 percent of Ryder’s drivers ments is easier for importers with a limited number of work in cross-border operations. These drivers are supply chain partners. For a 3PL with thousands of responsible for the security of a load while it’s in customers and carriers, it’s not reasonable, nor does it their possession. necessarily make sense, to force all partners to become • Freight brokerage – 3PLs match freight with avail- C-TPAT compliant. able modes on behalf of shippers and also facilitate For example, Ryder has approximately 1,500 carriers customs clearance for international shipments. under contract across all modes. If we required our entire • Supply chain visibility – 3PLs use sophisticated carrier base to participate in the C-TPAT program, the technology that provides visibility deep into a cus- number of highway carriers in the program could double. tomer’s proprietary supply chain. Movement of a Since this isn’t feasible, we have to differentiate how we are product is often tracked in real time. going to manage this variance for our customers. Thirdparty logistics providers are typically not in a position to Each of the areas described above is vulnerable to a secu- force non-C-TPAT customers to use C-TPAT carriers rity threat. If criteria doesn’t match a 3PLs business needs, just because the 3PL participates in the program. 46 WORLD TRADE AUGUST 2008

Table of Contents Feed for the Digital Edition of World Trade - August 2008

World Trade - August 2008 Contents Weathering the Storm Helping the World’s Poorest Nations Benefit from Global Trade Supply Chain Watch Tradewinds World Trade’s Top U.S. Trading Partners LTL Shipping ‘On the Fly’ Air Cargo Flies a New Heading Getting More from China Sourcing Why 3PLs Need a Seat at the C-TPAT Table Performance-based Supply Chains Drive Total Lifecycle Value SmartWay Navigates Sustainable Transportation Around the World in 80 Days—Hours—Minutes

World Trade - August 2008

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