In the C-TPAT seminar conducted in March 2010, CBP recommended a 5 Step Risk Assessment Process to assist C-TPAT Partners in conducting a risk assessment of their international supply chain(s), in accordance with C-TPAT minimum security criteria. The following 5 steps are included in the risk assessment process:
1) Map cargo flow and identify business partners
2) Conduct a Threat Assessment
3) Conduct a Vulnerability Assessment
4) Prepare an Action Plan
5) Document How Risk Assessments are conducted
I have been asked by numerous customers on what can be done to manage their C-TPAT process within the framework of these new guidelines. This 5 part article is my attempt to explain, in detail, each step in the new guidelines and discuss how you can leverage a software solution to support your C-TPAT process and easily conduct the risk assessments to meet the requirements of each step in the new guidelines and to manage your C-TPAT process efficiently.
1) Map cargo flow and identify business partners
“The strength of your supply chain security is based on its weakest link”. - In order to identify the weakest link it is imperative that you must first know all the links in your supply chain.
a. Map the cargo flow – The first activity in step 1 is to clearly map the flow of cargo from origin to destination. You are essentially creating your supply chain in this activity. Identify the various transport modes, transit stop locations such as ports and cargo inspection facilities. For example, each transport mode may have to be considered as a separate supply chain for meaningful risk assessment.
b. Identify the Partners - In simple terms you are expected to know who all the partners involved in facilitating the movement of your cargo from origin to destination. The key to success in this step is to identify all the partners involved in the supply chain.
c. Gather contact information for each partner - Some of them may be directly contracted with you, while others may be part of your supply chain, through relationships with your contracted partners. While it is easy to gather and in most cases you may already have information of all partners that are directly contracted with you, the biggest challenge in this step is to identify and gather information about partners that are not directly related to you.
Note, your supply chain is not complete unless you have mapped all partners (both direct and indirect) involved.
Using a solution like GTKonnect PRM and C-TPAT, you can easily solicit your contracted partners to provide the address and contact details for the indirect partners. This information is used to create a comprehensive supply chain with all partners identified. GTKonnect also lets you view your supply chains graphically using real time maps. Once created, this will help you track status and progress of individual partner’s, each supply chain and the all supply chains of the company as a whole.
About C-TPAT
Customs – Trade partnership against terrorism (aka C-TPAT) is a voluntary government-business initiative to build cooperative relationships that strengthen and improve overall international supply chain and U.S. border security.
Launched in 2001, immediately in response to 9/11, to secure our borders from terrorist attacks, the program has grown from 7 US importers at launch to over 10,000 + participants today. For more information please visit http://www.cbp.gov/xp/cgov/trade/cargo_security/ctpat
About Netwin Solutions and GTKonnect
Netwin Solutions is a premier provider of integrated global trade management software solutions through its GTKonnect platform. Netwin's GTKonnect provides organizations with a one stop solution for all their Compliance, automation, content needs related to Global Trade and Logistics.
While you are dedicated in giving more value added services to your customers and growing your core area of business, GTKonnect Global Trade Software and its services will enable you to meet the constant changing demands in being compliant and efficient and unifies import, export, Partner Relationship and CTPAT management, post entry reconciliation and financial processes, Drawback and Trade programs. GTKonnect provides software for ISF, ABI/ACE Software / Imports, Exports, Denied Party Screening, Partner Relationship Management (PRM), Trade Agreements (like NAFTA and CAFTA), C-TPAT, FTZ, Master Data Management; all available as a single integrated suite or available individually as deemed fit for your organization. Our growing global Trade database available for free access includes, trade news, trade content such as CSMS messages, Denied Party lists, global tariffs, various trade tools and trade links. GTKonnect's International Trade Software is being used by organizations in various verticals and of varying sizes, a proof to our capabilities.
Also read:
The new 5 step C-TPAT Risk Assessment process – Simplified (Part 2)
The new 5 step C-TPAT Risk Assessment process – Simplified (Part 3)
The new 5 step C-TPAT Risk Assessment process – Simplified (Part 4)
The new 5 step C-TPAT Risk Assessment process – Simplified (Part 5)
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