IMPROVING SECURITY THROUGH VISIBILITY

Common assessment and analysis of risk in global supply chains

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Prologue

Common assessment and analysis of risk in global supply chains

CALL FP7-SEC-2010-3

Collaborative project/Integration project

SEC-2010.3.2-1: Monitoring and tracking of shipping containers system

CASSANDRA is a 3 year project, from June 2011 to May 2014 and part of the European Commission’s Seventh

Framework programme for Security

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Overview

Why CASSANDRA?

Goal & Benefits

Security framework

New approach for risk assessment

Data pipeline concept

Living Lab demonstration

Final delivery

CASSANDRA partners

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Why CASSANDRA?

Increasing flow of containerised cross-border trade

Growing emphasis on security

Need for efficient and effective security and control

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Goal

CASSANDRA’s goal is to deliver 3 stakeholder benefits for the price of 1

“Improving performance”

“Improving efficiency and effectiveness”

Facilitate EU and global trade

CASSANDRA3 for 1

Business

Customs

General (Society)

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CASSANDRA will reach its goal

… by developing a data-sharing concept &

… by introducing a new approach for risk assessment

Demonstration of the solutions and building consensus are essential parts of the project

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Benefits for Business

Reduction of administration

costs and errors

Improved insight in performance

and supply chain risks

Reduced involvement of Customs (and

other authorities)

Improved Supply chain operational performance

CASSANDRA Data sharing CASSANDRA Customs benefits

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Benefits for Costums

Better identification of secure and safe

supply chains

More focus on high risk flows

Improved efficiency

Improved effectiveness (and higher hit rate)

CASSANDRA Data sharing

CASSANDRA Risk assessment

Improved data for

risk assessment

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General benefits

By improving supply chain performance CASSANDRA will facilitate global trade– Trade facilitation for developing countries will also be

tested in a real world Africa – Europe trade lane

New risk assessment & data sharing will – improve societal safety and – gives opportunities for product safety as well

Data sharing concept also brings opportunities for insight in e.g. CO2 footprints

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SUPPLY CHAIN SECURITY STRATEGY

Security framework (1/2)

Events can cause disruptions in the supply chain

Security strategy influences (type of) impact

Events Disruptions

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Security framework (1/2)

Insight in supply chain vulnerabilities are of central importance when determining strategy

Internal sourcesof risk

Disruptions

External sources of risk

External sources of riskVulnerabilities

Logistics structure and concept (dependencies)

Security enhancing measures

Analysis tools

Preventive measures

Reactive measures

Supply chain security strategy

e.g. Natural disaster, theft

e.g. Strike, poor data quality

e.g. Discontinued supply, supply chain congestion

e.g. Sealing A container

e.g. Contingency plans

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New approach risk assessment (1/3)

New risk assessment for Customs based on Risk Based Audit (RBA) approach

RBA– focuses on risks – focuses on underlying causes and – shifts attention from transactions to processes

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New approach risk assessment (2/3)

Piggy-backing means reusing business data for government control purposes

Customs can piggy-back on business risk assessment

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New approach risk assessment (3/3)

By aligning risk assessment for customs and business, ...

... business will be provided with operational risk information, while ...

... giving maximum leverage for customs risk assessment

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Data pipeline concept (1/4)

Subsets of supply chain data are held by different parties in the chain

Reliability of data is not always clear

Lack of visibility

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Data pipeline concept (2/4)

Consignor or Exporter

Consignee or ImporterContainer/Carrier

Freight Forwarder or

3PL

Freight Forwarder or

3PL

EU Regulation

Country B

Port 1 Port 2

CARGO

3rd Country Regulation

Country ACARGO CARGO CARGO

Ph

ysic

al l

ayer

Org

anis

atio

nal

la

yer

Dat

a &

Do

cum

ent

laye

rFuture Customs and International Trade Systems

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Data pipeline concept (3/4)

Data will be captured at the source

Data can be pulled from the pipeline by authorised business and customs– Special attention will be given to data security and

accessibility levels

CASSANDRA data pipeline will bring visibility and also facilitate RBA

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Data pipeline concept (4/4)

CASSANDRA will bridge gaps between existing solutions with state of the art IT

Achieving interoperability of heterogeneous systems with standard, open and flexible communication is key

Result will be a virtual data pipeline

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Living Lab demonstration

In a Living Lab, innovations are tested in a real world setting

CASSANDRA solution (both risk assessment & data-sharing) is tested in 3 labs:

– Asia Europe – Europe US – Africa Europe

Each lab holds more trade lanes in which actual stakeholders participate

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Final deliverables

CASSANDRA will..

– ..deliver an improved and tested risk assessment methodology for both business and Customs

– ..deliver a new and tested concept for data-sharing in supply chains, thus increasing visibility

– ..introduce a combination of new risk assessment and data sharing thus “Improves Security through Visibility”

– ..advise on stakeholder benefits and implementation

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CASSANDRA consortium

CASSANDRA consortium comprises of 27 partners in the fields of – Supply Chain Management– Logistics– IT– Research– Customs

These partners, from 10 different countries have a total budget of €15 million with almost €10 million funding by the EC

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Further information

For more information concerning the CASSANDRA project and the consortium partners, please visit

www.cassandra-project.eu