Robert Bonner, CBP Commissioner, announced during the recent Customs Trade Symposium in Washington, D.C., that he was ready to take the Customs-Trade Partnership Against Terrorism (C-TPAT) program to the next level, which he called “C-TPAT Plus”. C-TPAT Plus would provide “no inspection upon arrival — immediate release” for low-risk shippers using technology that can detect and record whether tampering has occurred with a container seal after being affixed at the point of origin. “U.S. Customs and Border Protection should be commended for its forward-looking recognition of ‘Smart Box’ technology in helping to further strengthen Homeland Security while also providing economic value for its users,” said Omar Hijazi, an A.T. Kearney principal who oversaw the report, which was conducted for client Savi Technology. “Our study validated that logistics executives for major importers and exporters believe that a tracking and security solution using Radio Frequency Identification (RFID) technologies linked to a networked platform that goes beyond simple tamper alerts can provide significant value,” said Hijazi. “Based on a number of potential benefits, we calculated that users could realize net benefits averaging $1,200 per container shipment. This would be added on top of benefits received through fast-track Green Lane qualification, and could create major productivity gains that outweigh the costs of implementation.” From extensive interviews with logistics executives at 25 of the world’s largest importers and exporters (Retail/Consumer Products Goods, Chemicals, Automotive and High Tech industries), the A.T. Kearney study found that container security and inventory management are among the most important issues facing the over-ocean supply chain. Specifically, the A.T. Kearney study on synchronous and secure supply chain for global container shipments found that logistics executives believed smart box RFID technology going beyond simple “automated tampering alerts” can improve container security while also: — Reducing Inventory — Reducing Out-of-Stocks — Reducing Lead-Time Variance — Increasing Manufacturing Uptime — Reducing Administrative Costs and Fees — Preventing Theft — Preventing Lost Containers “It’s very clear now that economic security and physical security are inter-linked in the supply chain, and that RFID technologies networked on a software platform is the key driver,” said Mark Weidick, General Manger of Savi’s Collaborative Network Services group. “With new incentives from Customs for shippers to achieve green lane status through ‘Smart Boxes,’ combined with analyses on investment returns of these proven technologies, our customers are gaining distinct competitive advantages. “Our solutions, which have been literally battle-tested in over a million containers moves, are modular and extensible from the most simple ‘sense and respond’ tamper evident alert to a more networked supply chain management and execution solution that provides greater ROI for shippers.”
