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IMPROVING SECURITY THROUGH VISIBILITY
Common assessment and analysis of risk in global supply chains
2
Prologue
Common assessment and analysis of risk in global supply chains
CALL FP7-SEC-2010-3
Collaborative project/Integration project
SEC-2010.3.2-1: Monitoring and tracking of shipping containers system
CASSANDRA is a 3 year project, from June 2011 to May 2014 and part of the European Commission’s Seventh
Framework programme for Security
4
Overview
Why CASSANDRA?
Goal & Benefits
Security framework
New approach for risk assessment
Data pipeline concept
Living Lab demonstration
Final delivery
CASSANDRA partners
5
Why CASSANDRA?
Increasing flow of containerised cross-border trade
Growing emphasis on security
Need for efficient and effective security and control
6
Goal
CASSANDRA’s goal is to deliver 3 stakeholder benefits for the price of 1
“Improving performance”
“Improving efficiency and effectiveness”
Facilitate EU and global trade
CASSANDRA3 for 1
Business
Customs
General (Society)
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CASSANDRA will reach its goal
… by developing a data-sharing concept &
… by introducing a new approach for risk assessment
Demonstration of the solutions and building consensus are essential parts of the project
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Benefits for Business
Reduction of administration
costs and errors
Improved insight in performance
and supply chain risks
Reduced involvement of Customs (and
other authorities)
Improved Supply chain operational performance
CASSANDRA Data sharing CASSANDRA Customs benefits
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Benefits for Costums
Better identification of secure and safe
supply chains
More focus on high risk flows
Improved efficiency
Improved effectiveness (and higher hit rate)
CASSANDRA Data sharing
CASSANDRA Risk assessment
Improved data for
risk assessment
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General benefits
By improving supply chain performance CASSANDRA will facilitate global trade– Trade facilitation for developing countries will also be
tested in a real world Africa – Europe trade lane
New risk assessment & data sharing will – improve societal safety and – gives opportunities for product safety as well
Data sharing concept also brings opportunities for insight in e.g. CO2 footprints
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SUPPLY CHAIN SECURITY STRATEGY
Security framework (1/2)
Events can cause disruptions in the supply chain
Security strategy influences (type of) impact
Events Disruptions
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Security framework (1/2)
Insight in supply chain vulnerabilities are of central importance when determining strategy
Internal sourcesof risk
Disruptions
External sources of risk
External sources of riskVulnerabilities
Logistics structure and concept (dependencies)
Security enhancing measures
Analysis tools
Preventive measures
Reactive measures
Supply chain security strategy
e.g. Natural disaster, theft
e.g. Strike, poor data quality
e.g. Discontinued supply, supply chain congestion
e.g. Sealing A container
e.g. Contingency plans
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New approach risk assessment (1/3)
New risk assessment for Customs based on Risk Based Audit (RBA) approach
RBA– focuses on risks – focuses on underlying causes and – shifts attention from transactions to processes
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New approach risk assessment (2/3)
Piggy-backing means reusing business data for government control purposes
Customs can piggy-back on business risk assessment
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New approach risk assessment (3/3)
By aligning risk assessment for customs and business, ...
... business will be provided with operational risk information, while ...
... giving maximum leverage for customs risk assessment
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Data pipeline concept (1/4)
Subsets of supply chain data are held by different parties in the chain
Reliability of data is not always clear
Lack of visibility
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Data pipeline concept (2/4)
Consignor or Exporter
Consignee or ImporterContainer/Carrier
Freight Forwarder or
3PL
Freight Forwarder or
3PL
EU Regulation
Country B
Port 1 Port 2
CARGO
3rd Country Regulation
Country ACARGO CARGO CARGO
Ph
ysic
al l
ayer
Org
anis
atio
nal
la
yer
Dat
a &
Do
cum
ent
laye
rFuture Customs and International Trade Systems
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Data pipeline concept (3/4)
Data will be captured at the source
Data can be pulled from the pipeline by authorised business and customs– Special attention will be given to data security and
accessibility levels
CASSANDRA data pipeline will bring visibility and also facilitate RBA
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Data pipeline concept (4/4)
CASSANDRA will bridge gaps between existing solutions with state of the art IT
Achieving interoperability of heterogeneous systems with standard, open and flexible communication is key
Result will be a virtual data pipeline
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Living Lab demonstration
In a Living Lab, innovations are tested in a real world setting
CASSANDRA solution (both risk assessment & data-sharing) is tested in 3 labs:
– Asia Europe – Europe US – Africa Europe
Each lab holds more trade lanes in which actual stakeholders participate
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Final deliverables
CASSANDRA will..
– ..deliver an improved and tested risk assessment methodology for both business and Customs
– ..deliver a new and tested concept for data-sharing in supply chains, thus increasing visibility
– ..introduce a combination of new risk assessment and data sharing thus “Improves Security through Visibility”
– ..advise on stakeholder benefits and implementation
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CASSANDRA consortium
CASSANDRA consortium comprises of 27 partners in the fields of – Supply Chain Management– Logistics– IT– Research– Customs
These partners, from 10 different countries have a total budget of €15 million with almost €10 million funding by the EC
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Further information
For more information concerning the CASSANDRA project and the consortium partners, please visit
www.cassandra-project.eu