Supply Chain Security IGTLC
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- Roger Jefferson
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1 Supply Chain Security IGTLC
2 CONVERGENCE: CARGO-CYBER CRIME Mix of Physical and Cyber Tactics to Set-up Fraudulent Pick-ups Phone spoofing Criminals calling airlines to gather intelligence on freight arrival and configuration Social engineering to prepare for arrival of bogus driver Falsified documents (fraudulent bar-codes, etc.) Selecting off hours, so verification with other parties is more challenging (nights, weekends, Holidays) Hacking carrier sites, semi-private websites for company details Stealing company identity; fraudulent insurance certificates 2
3 SECURITY EXPEDITORS SECURITY STANDARDS Cornerstone of our security program Based on government and industry standards Implemented Globally SUPPLY CHAIN SECURITY CERTIFICATIONS C-TPAT Certified in 2003; Validated in 2004, 2007 & 2012 Over 10 AEO Program Certifications in Europe & Asia PIP Program Member Since 2003 CCSP 14 TSA Certified Cargo Screening Facilities 3
4 EXPEDITORS SECURITY STANDARDS KEY COMPONENTS Branch Security Representative Personnel Security Service Provider Selection and Management Access Control Physical Security and Security Systems In-Transit Security Information Security Container Security and Seals Security Awareness Training Incident Reporting and Analysis Measurements, Audits and Follow-up
5 CUSTOMER CHALLENGES Develop cost effective solutions to reduce risk in complex supply chains Make decisions fast enough while in transit to avoid delay or loss Receiving data and insight to improve future shipments Implementing a door to door full service security solution 5
6 INTELLIGENCE MIAMI Theft of Full Truckload Theft Value: unspecified Synopsis: On 06/12/, a shipment of various home and garden goods was stolen from an unsecured parking area. Fictitious Pickup Theft Value: $1.2M Synopsis: On 05/19/, a shipment of cell phones was stolen from Miami International Airport. Theft of Full Truckload Theft Value: $100K Synopsis: On 04/14/, a shipment of various food and drinks was stolen from an unsecured parking area. 6
7 ROUTE PLANNING - EUROPE Location: Aire de Labenne, Aquitaine [ ] IN TRANSIT ADJUSTMENT Secure Service notified by Operations of possible demonstrations along the pre-planned route (A64) near Pau, France. Service Provider contacted and alternate route established traveling north on A63 and avoiding A64. (Pau). New route and stops vetted. Driver departure interview conducted and new routes briefed. No change to security status. 7
8 ACTIVE MONITORING COMMAND CENTER BLENDING DISCIPLINES
9 TECHNOLOGY CELL SIGNAL IN DIFFICULT ENVIRONMENTS Portable battery operated tracking devices Integrate with Over Pack for covert application 9
10 LIGHT Devices are equipped with sensors that quantify light (luminance)- Moonlight to sun light. Sensors generate an output signal indicating the intensity of light measuring radiant energy from infra-red to ultraviolet detection Ability to set parameters over the air Real time monitoring, allowing for immediate investigation into potential unauthorized entry into secure storage Sun Light 2000 lux Soft Sided Truck Closed trailer 8-12% 0-2%.0002 lux Moonlight 10
11 COMMUNICATIONS JAMMING A GROWING THREAT GPS jamming devices are radio frequency transmitter that overpower and interfere with our cellular, radio, and Wi-Fi networks Some devices claim to reach out up to 1000 meters (.62 miles) Illegal in US however, remain obtainable 11
12 MITIGATION STRATEGIES TECHNOLOGY CAPABILITIES Redundant layers of signal GPS jamming notification (Alarm) Immediate triangulation of location *Note The device does trigger an alarm on false positives 12
13 DATA ANALYSIS WITH ADVANCED CARGO SENSORS 13
14 AVOIDING FLIGHT DELAY
15 AVOIDING FLIGHT DELAY A large semi-conductor company was attempting to ship a prototype product from Taipei (TPE) to the U.S. The extremely valuable item was critical to the success of a major electronics manufacturer s project, and was scheduled to be delivered the following day to the on-site engineering team. 15
16 AVOIDING FLIGHT DELAY Our Command Center confirmed that the shipment arrived successfully at the Taipei airport and was waiting to be loaded onto the aircraft. 16
17 AVOIDING FLIGHT DELAY After confirming flight take-off, our team noted that the sensor on the cargo was still actively reporting its current location on the tarmac at TPE airport 17
18 AVOIDING FLIGHT DELAY The branch contacted the airline which confirmed not once, but twice, that the cargo was aboard the scheduled flight 18
19 AVOIDING FLIGHT DELAY The Command Center and branch teams persisted, and in the third conversation, presented with a precise screenshot of the sensor s current reporting location, the airline confirmed that it had failed to load the shipment onto the flight 19
20 AVOIDING FLIGHT DELAY Fortunately, the airline was able to re-load it onto the very next direct flight and arrival was delayed by only a few short hours 20
21 DIGITAL CHAIN OF CUSTODY
22 DIGITAL CHAIN OF CUSTODY Intellectual Property (IP) departure from California Planned stop at secure yard in Sacramento 22
23 DIGITAL CHAIN OF CUSTODY An unplanned stop was detected while in transit 23
24 DIGITAL CHAIN OF CUSTODY Truck proceeded to Salt Lake City Convention Center 24
25 DIGITAL CHAIN OF CUSTODY Investigation revealed hasp was manipulated Additional cargo loaded Delivered to Salt Lake City Convention Center 25
26 DIGITAL CHAIN OF CUSTODY Convention Center Weekend Security Staff engaged CCTV footage verified against description of equipment 26
27 DIGITAL CHAIN OF CUSTODY Physical inspection of the equipment What s wrong with this picture? 27
28 DIGITAL CHAIN OF CUSTODY A systematic record of where the cargo has been with data-driven proof of no tampering LOCATION ACCURACY ENABLED Issue escalation with dispatch Efficient use of CCTV footage for investigation Aggressive monitoring through remainder of trip 28
29 TEMPERATURE MONITORING
30 $1,700,000 SAVED IN 6 HOURS
31 ACTIVE MONITORING A flight arrived on a Friday afternoon carrying our customer s shipment of temperature-controlled pharmaceuticals.
32 ACTIVE MONITORING Since the final delivery was scheduled for Monday morning, the trailer was delivered to an Expeditors warehouse after recovery from the airport, and a sensor was applied to monitor the temperature throughout the weekend.
33 ACTIVE MONITORING Late on Friday evening the Command Center was alerted that the temperature had neared the minimum acceptable threshold and was still dropping rapidly.
34 ACTIVE MONITORING Using the contacts in place in our network, identified in the Security Plus plan, the Expeditors team was able to make contact with a maintenance crew and check the setting on the refrigerated trailer.
35 ACTIVE MONITORING Investigation revealed that the container temperature was set to 15 degrees Fahrenheit instead of Celsius, an easy mistake.
36 ACTIVE MONITORING Had this not been caught and corrected, our customer s shipment of pharmaceuticals would have been frozen by the time it was delivered, and that company would have suffered a loss of product valued at US $1.7 million.
37 CUSTOMER VISIBILITY 37
38 IMPLEMENTATION CONSIDERATIONS 1. Airline Approvals 2. Customs Treatment of Tracking Devices 3. Battery Life versus Transit Times 38
39 SECURITY PLUS Utilize cost effective solutions to reduce risk in complex supply chains. Trust your cargo is being monitored 24/7 by global logistics and law enforcement recovery experts. Receive analysis using data from advanced cargo sensors to improve future shipments. Make decisions fast enough while in transit to avoid delay or loss. 39
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