Final Report Summary - LOGSEC (Development of a strategic roadmap towards a large scale demonstration project in European logistics and supply chain security)
Global supply chains and logistics systems are threatened. Theft, trade and customs law violations, counterfeit products, organised immigration crime, sabotage, cyber-crime, sea piracy, terrorism and other illicit acts generate direct losses, logistics delays, damage to reputation, and other costs for the private sector, particularly for cargo owners and logistics companies, as well as for the society as a whole. The 2001 terrorist attacks in the United States ('9/11') triggered an avalanche of governmental programs and regulations worldwide, including in the European Union (EU), to mitigate the risks from terrorism such as those from large scale destruction in the supply chain system itself and / or upon specific targets and locations, adding to the 'traditional security cost burden' for the business and the society.
LOGSEC was a 12-month project which developed a strategic roadmap for future Supply chain security (SCS) in Europe, taking into consideration the various strategic, operational, financial, legal and other expectations and constraints existing in real word supply chains. The LOGSEC team had a balanced representation from the private sector (ESC, CLECAT) and public sector end-users (SC), from research and technologies (ICE, ATOS, POL, CBRA), and from management consulting (EFPC). The user requirement data was collected from a number of private sector organizations representing manufacturing, logistics and trade / retail sectors; as well as from a number of governmental bodies, including EU-level, national and global ones.
As the main outcome for the project, LOGSEC recommends the implementation of multiple SCS sub-projects under the following three SCS clusters:
- Cluster A comprised sub-projects relating to security awareness and risk management, increasing knowledge of crime trends, awareness of security measures, SCS compliance management and the economics of SCS, builds a culture and approach that more proactively and successfully responds to security risks and threats.
- Cluster B focuses on areas relating to the authentication and certification of people, companies, documents and data in the supply chain. With improved assurances that the people and information in the supply chain are trustworthy, deception may be filtered out, uncovered and fraudsters deterred.
- Cluster C centres around sub-projects aimed at protecting cargo, vehicles and drivers during transportation, logistics handovers as well as during breaks / stops / parking: in essence, it is a cluster of sub-projects focused on the physical transportation security and on cargo monitoring.
The context for LOGSEC SCS roadmap is defined first by following supply chain related parameters and characteristics:
- end-to-end supply chains, covering sourcing, manufacturing, transport, distribution, trade and retail as well as reverse logistics;
- international (crossing customs borders), EU-level and national supply chain activities and transactions are included;
- regarding manufacturing sectors and commodity types, a broad variety were covered, including 'security-sensitive' sectors: food and pharmaceuticals (high consumer safety requirements); chemicals (as dangerous goods); alcoholic beverages and cigarettes (high tax / excise products); consumer electronics (as high value, easy-to-sell-on-black-markets -products);
- manufacturing sectors also included 'low security risk' products, e.g. low cost clothing, and lightning products;
- regarding logistics services, all types were covered, including freight forwarding, warehousing, customs brokerage etc.;
- regarding modes of transport, most attention was paid to road transport, following the inputs from the study participants. Air and maritime were also included in the study, but to a lesser extent;
the crime types and security responses considered cover the 'maximum breadth': initially, 25 crime types were identified by LOGSEC team, finally focusing on 12 most relevant ones (priorities coming from the study participants).
The supply chain security management model for LOGSEC consists of eight layers, which are all addressed (at least to some extent) by the LOGSEC roadmap.
The culmination of the LOGSEC project is the established recommendations for future large scale demonstration projects, formulated in a way that created a possibility for considerable flexibility in the number and scale of projects that could be undertaken in order to address specific supply chain security gaps identified by this project; and the analysis and assessments done helping to prioritise the issues that projects could address.
LOGSEC was a 12-month project which developed a strategic roadmap for future Supply chain security (SCS) in Europe, taking into consideration the various strategic, operational, financial, legal and other expectations and constraints existing in real word supply chains. The LOGSEC team had a balanced representation from the private sector (ESC, CLECAT) and public sector end-users (SC), from research and technologies (ICE, ATOS, POL, CBRA), and from management consulting (EFPC). The user requirement data was collected from a number of private sector organizations representing manufacturing, logistics and trade / retail sectors; as well as from a number of governmental bodies, including EU-level, national and global ones.
As the main outcome for the project, LOGSEC recommends the implementation of multiple SCS sub-projects under the following three SCS clusters:
- Cluster A comprised sub-projects relating to security awareness and risk management, increasing knowledge of crime trends, awareness of security measures, SCS compliance management and the economics of SCS, builds a culture and approach that more proactively and successfully responds to security risks and threats.
- Cluster B focuses on areas relating to the authentication and certification of people, companies, documents and data in the supply chain. With improved assurances that the people and information in the supply chain are trustworthy, deception may be filtered out, uncovered and fraudsters deterred.
- Cluster C centres around sub-projects aimed at protecting cargo, vehicles and drivers during transportation, logistics handovers as well as during breaks / stops / parking: in essence, it is a cluster of sub-projects focused on the physical transportation security and on cargo monitoring.
The context for LOGSEC SCS roadmap is defined first by following supply chain related parameters and characteristics:
- end-to-end supply chains, covering sourcing, manufacturing, transport, distribution, trade and retail as well as reverse logistics;
- international (crossing customs borders), EU-level and national supply chain activities and transactions are included;
- regarding manufacturing sectors and commodity types, a broad variety were covered, including 'security-sensitive' sectors: food and pharmaceuticals (high consumer safety requirements); chemicals (as dangerous goods); alcoholic beverages and cigarettes (high tax / excise products); consumer electronics (as high value, easy-to-sell-on-black-markets -products);
- manufacturing sectors also included 'low security risk' products, e.g. low cost clothing, and lightning products;
- regarding logistics services, all types were covered, including freight forwarding, warehousing, customs brokerage etc.;
- regarding modes of transport, most attention was paid to road transport, following the inputs from the study participants. Air and maritime were also included in the study, but to a lesser extent;
the crime types and security responses considered cover the 'maximum breadth': initially, 25 crime types were identified by LOGSEC team, finally focusing on 12 most relevant ones (priorities coming from the study participants).
The supply chain security management model for LOGSEC consists of eight layers, which are all addressed (at least to some extent) by the LOGSEC roadmap.
The culmination of the LOGSEC project is the established recommendations for future large scale demonstration projects, formulated in a way that created a possibility for considerable flexibility in the number and scale of projects that could be undertaken in order to address specific supply chain security gaps identified by this project; and the analysis and assessments done helping to prioritise the issues that projects could address.
