"Development of a strategic roadmap towards a large scale demonstration project in European logistics and supply chain security".
Grant agreement no: 241676. Date: 1.4.2010-31.3.2011
LOGSEC URL: http://www.logsec.org/
Global supply chains and logistics systems are threatened. Theft, trade and customs law violations, counterfeit products, organized 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. The 2001 terrorist attacks in the USA (“9/11”) triggered an avalanche of governmental programs and regulations 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. Consequently the cost of preventative security for the private sector has increased.
LOGSEC, the 12-month EU FP7 Roadmap project for Supply chain security (SCS), formulated the following main research questions: “What should be done in the future to enhance SCS in a cost efficient manner, in the European context?”, and furthermore, ”Why and how should these enhancements be carried out, while avoiding unnecessarily high investments and operational expenses?”. LOGSEC began by taking a broad view on the various crime types and terrorism (defined commonly as “man-made illicit acts”) taking place in supply chains, while appreciating the fact that Supply Chain Security (SCS) is highly context dependent (manufacturing sectors, transport modes, geographies etc.).
The LOGSEC overall approach and methodology consisted of the following four main stages:
• Setting up the LOGSEC approach, with the overall framework, detailed scope and study objectives;
• Identifying and prioritizing issues, weaknesses and gaps in Supply chain security today;
• Developing and assessing relevant Clusters for the LOGSEC Roadmap, addressing the gaps; and
• Converting the SCS Clusters into tangible recommendations, suitable for future Demonstration(s).
The primary outcome of the project was a set of recommendations to enhance supply chain security. These were encapsulated within three Clusters of individual project areas.
Cluster A comprised sub-project areas relating to security awareness and risk management, increasing knowledge of crime trends, awareness of security measures, SCS compliance management and the economics of SCS, building 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-project areas 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.
Each cluster therefore comprises a number of tangible sub-project areas. Each could be undertaken as an area for demonstration projects in their own right, however the LOGSEC team believe that in total they would address all the issues and gaps in logistics and supply chain security which the project uncovered.
The LOGSEC project also sought to ensure the overall importance and relevance of the Roadmap to current security issues, programmes, initiatives and regulation was maintained; the project included multiple assessment steps, concluding that:
• The study population represented the interests of actors throughout supply chain communities, including manufacturing, logistics and retail;
• From security management and crime prevention theories and other perspectives, the Roadmap covers the key security management layers, as well as tackling the relevant crime types;
• From the perspective of EU ‘administrations’, the Roadmap supported improved compliance with regulatory programmes, and complements much of current EU research and other initiatives in the area of guidelines and standardization;
Finally, the Yemen bomb plot in October 2010 showed that the SCS arena is an ever changing, dynamic scenario: our responses must be sufficiently adaptable to respond to the new paradigms.
The LOGSEC project results and conclusions present a Roadmap which provides options to tailor future research and demonstrations to address the key issues and gaps in SCS which are present today and predicted for tomorrow.
Publications and presentations:
LOGSEC Roadmap (2011) at: http://www.logsec.org/images/upload/file/docs_logsec-roadmap-finalpublic.pdf [Accessed 25 November 2012]
Kaikkonen, E. and Hintsa, J., 2011. LOGSEC develops strategic ‘Roadmap’ to fill gaps in supply chain security, Vigilant, TAPA EMEA, [online]. Available at: http://tapaemea.com/download/newsletter/TAPA_EMEA_Vigilant_April_2011.pdf [Accessed 15 December 2011].
Hintsa, J., Hameri, A.-P., Tsikolenko, V., Männistö, T. and Schaller, K., 2010. Crime and Security in Postal Supply Chains. In: EPFL, Trends and innovation for the postal markets conference. Lausanne, Switzerland, 13 September 2010.
Hintsa, J., Hameri, A.-P., Männistö, T., Lazarescu, M., Ahokas, J. and Holmström, J., 2010. Conceptual model for measuring benefits of security in global supply chains. In: Proceedings in CD-ROM, the 3rd International Conference on Transportation and Logistics (T-LOG). Fukuoka City, Japan, 6-8 September 2010.
Hintsa, J., Ahokas, J., Zaghbour, K., Männistö, T., Hameri and A.-P., Holmström, J., 2010. Conceptual model for assessing cost of security in global supply chains. In: EurOMA 2010 Proceedings, 17th International Annual EurOMA Conference. Porto, Portugal, 6-9 June 2010, Porto, Portugal: Catholic University of Portugal, European Operations Management Association.
Ahokas, J., Laiho, A., Hintsa, J., Männistö, T. and Holmström, J., 2010. A conceptual model for crime prevention in Supply Chain management. In: EurOMA 2010 Proceedings, 17th International Annual EurOMA Conference. Porto, Portugal, 6-9 June 2010, Porto, Portugal: Catholic University of Portugal, European Operations Management Association.