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VOLUNTARY SUPPLY CHAIN SECURITY PROGRAM IMPACTS: AN EMPIRICAL STUDY WITH BASC MEMBER COMPANIES

Cross-border Research Associaton. Team of academic researchers in Lausanne, Switzerland; not-for-profit organization;working since summer 2001 on cross-border and security researchstarted EU AEO research in summer 2005, as part of broader supply chain security management (SCSM) studiesMission: to innovate and execute various types of research, analysis and case studies surrounding the broad field of supply chain security management programs, standards, measures, trade-offs and costs.Our rese9448

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VOLUNTARY SUPPLY CHAIN SECURITY PROGRAM IMPACTS: AN EMPIRICAL STUDY WITH BASC MEMBER COMPANIES

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    1. VOLUNTARY SUPPLY CHAIN SECURITY PROGRAM IMPACTS: AN EMPIRICAL STUDY WITH BASC MEMBER COMPANIES

    3. Study Motivation BASC and the international supply chain security environment Study description Findings Conclusions Other studies

    4. Supply Chain Security Management, SCSM: Aims to minimize any type of crime at any stages of supply chains Individual security measures typically have one or more of the following goals: prevent – detect - recover Crime can be of „minor or major nature“ Crime can consist of „taking out and adding in“ Crime includes: theft, smuggling, sabotage, terrorism; (partially also counterfeit, parallel trade etc.; however, these happen normally in “separate supply chains”) Note: proper SCSM can help companies to deal with other types of supply chain risks, including industrial accidents, natural disasters etc.

    5. Increasing attention to protect global supply chains against illegal acts Great variety of security initiatives; from country specific operational regulations to global research and technology piloting programs. Multiple implementation possibilities Little empirical evidence about the impacts of these programs for the companies that have implemented them.

    8. Supply Chain Security Management Analysis Framework

    18. This study presents empirical data about the cost, efforts required and effectiveness of supply chain security programs. Qualitative benefits were proven to exist, but respondents were hardly able to explain the quantifiable gains of these achievements. Potential future studies. Results showed that companies not only improve their image but they got various security direct benefits and some contributions to supply chain efficiency. BASC companies, based in risky countries, have shown that it is possible to enhance security within difficult conditions.

    19. Businesses expect significant incentives from governments for the participation in this program. However these benefits showed to be less attained than the expectations. The capability of Customs Administrations and government agencies to provide or not these benefits will determine the difference between two possible future scenarios for security certifications as: i) Real “secure vs. unsecure trader” differentiators ii) Minimum requirements for companies to carry out activities in international trade. BASC members have covered the entire cost of enhancing security in their supply chains. It is to be studied if for new programs cost sharing between the private and the public sector will be feasible.

    20. SEE YOU ALL AT SCSM2007 CONFERENCE IN LAUSANNE / VEVEY, SWITZERLAND OCTOBER 2007

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