Supply Chain Security Container Inspection and Seal Application Supply Chain Security 8/25/2010 1
Supply Chain Security: Container Inspection & Seal Application The attached information has been created to further outline our supply chain security requirements for ocean container inspection and seal application. It may also be used as an educational aid by our suppliers shipping product in full ocean container units to Lockheed Martin facilities. 2
Point of Origin Shipping Security The security of our global supply chain relies heavily on the ability of the foreign supplier s personnel to understand and execute container seal and cargo integrity procedures If contraband, people, or objects of terrorism are introduced into the container at the point of stuffing (loading), then security measures throughout the rest of the supply chain have been compromised Origin security is in your control 3
Supply Chain Security Requirements Container integrity must be maintained to protect against the introduction of unauthorized material and/or persons At point of stuffing, procedures must be in place to properly seal and maintain the integrity of the shipping containers A high security seal must be affixed to ocean container units consigned to Lockheed Martin All seals must meet or exceed the current ISO/PAS* 17712 standards for high security seals Procedures must be in place to verify the physical integrity of the container structure prior to stuffing, to include the reliability of the locking mechanisms of the doors. A sevenpoint inspection process is recommended for all containers. * International Organization for Standardization (ISO) Publicly Available Specification (PAS) 4
Container Inspection All full container ocean shipments are required to complete the a 7-Point Container Inspection at the point of loading: 1. Outside/Undercarriage (before entering facility) 2. Inside/Outside doors 3. Right side 4. Left Side 5. Front wall 6. Ceiling/Roof 7. Floor (Inside) 5
7-Point Container Inspection 1. Outside/ Undercarriage: Inspect prior to entering facility Support beams should be visible 6
7-Point Container Inspection 2. Inside/ Outside Doors: Look for Different color bonding material Loose bolts Plates and repairs Secure and reliable locking mechanisms Solid plates should not cover standard container cavities 7
7-Point Container Inspection 3 & 4. Right/ Left Sides: Look for unusual repairs to structural beams Repairs to walls on the inside of the container must be visible on the outside Use tool to tap side walls. Listen and feel for hollow sound. 8
7-Point Container Inspection 5. Front Wall: Make sure blocks and vents are visible Use tool to tap front wall. Listen and feel for hollow sound. If interior dimensions are appreciably less than the exterior there is the potential of a false wall or cavity 9
7-Point Container Inspection 6. Ceiling/ Roof: If interior dimensions are appreciably less than the exterior there is the potential of a false wall or cavity Blocks and vents should be visible Repairs to the ceiling on the inside of the container should be visible on the outside Use tool to tap ceiling. Listen for hollow sound. 10
7-Point Container Inspection 7. Floor: Floor should be flat. You should not need to step up to get inside. Floor height should be consistent Investigate unusual repairs 11
High Security Seals A high security seal must be affixed to full ocean container units consigned to Lockheed Martin All seals must meet or exceed the current ISO/PAS* 17712 standards for high security seals * International Organization for Standardization (ISO) Publicly Available Specification (PAS) 12
What Is ISO/PAS 17712? International Organization for Standardization (ISO) Publicly Available Specification (PAS) ISO/PAS 17712 establishes uniform procedures for the classification, acceptance, and withdrawal of acceptance of mechanical freight container seals. High security seals are security seals that are constructed and manufactured of material such as metal or metal cable with the intent to delay intrusion; they generally must be removed with quality bolt cutters or cable cutters. They require inspection to indicate whether tampering has occurred or entry has been attempted. 13
Bolt Seals Sample ISO/PAS 17712 Bolt Seals 14
Cable Seals Sample ISO/PAS 17712 Cable Seals 15
Non-Compliant Seals These seals are NOT ISO/PAS 17712 compliant 16
Are you affixing the right seal? If the ocean carrier or highway carrier has not provided a high security seal, the supplier must obtain and affix one before allowing the container to be transported. ISO/PAS 17712 High Security Seals are REQUIRED on full ocean container units to Lockheed Martin 17
Seal Control Seals are to be affixed by a responsible, designated employee that has received appropriate instruction and training in the proper use and application of ISO/PAS 17712 high-security seals Seals shall be stored in a secure location (locked cabinet, safe, etc.) until their use Access to such secure locations must be restricted to designated employees responsible for the inventory and affixing of seals 18
Seal Procedures Procedures must be in place to show how a seal is affixed to the container 19
Applying Seals Seals should be affixed to the right door on the hasp that has the welded rivet Only designated, authorized employees must distribute and affix container seals for integrity purposes. The fewer people who have access to seals, the better! Unauthorized employees must never handle container seals 20
Seal Verification and Inspection Process Conduct a V. V. T. T. Seal Inspection V View seal and container locking mechanisms V Verify seal number for accuracy T Tug on seal to make sure it is affixed properly T Twist and Turn seal to make sure it does not unscrew 21
Seal Verification and Inspection Process View seal and container locking mechanisms. Excessive damage to the seal or locking mechanism must be investigated Look for loose bolt and hasp, Detachable or loose bolts can allow access inside container 22
Seal Verification and Inspection Process Verify seal number for accuracy and compare with shipping documents 23
Seal Verification and Inspection Process Tug on seal to make sure it is affixed properly Seal stem is bent. Seal does not lock properly. Glue inside locking mechanism. Seal does not lock properly. 24
Seal Verification and Inspection Process Twist and turn seal to make sure it does not come off 25
Additional Seal Requirements Ensure that all manifests, bills of lading or other documentation (including electronic data transmissions) are complete and include accurate seal information Maintain a seal log in order to account for all seals 26
Seal Integrity in Transit If the seal must be removed and replaced in transit, notify the transportation provider (carrier, freight forwarder or third party logistics provider) and Lockheed Martin of the reason and the new seal number. 27
Thank you for doing your part to ensure the security of our supply chain If you have any questions regarding Container Inspection and Seal Application, please contact Lockheed Martin for guidance 28