Institute for Supply Management

Thursday, February 28, 2008

Galveston,Texas

Managing Chemical Global Supply Chains:

Imports/Post 9/11

ABOUT THE ISM Lecturer....THOMAS A. COOK

Tom has been involved in global business for over 24 years in an array of diverse international trades.He graduated from maritime college at Fort Schuyler, NY, where he holds both a BS degree in Transportation Science and a graduate

degree in Transportation and Business Management.His career began in the us naval reserve and the US and Dutch Merchant Marine, where he served as an officer in various capacities on

passenger, tug, oil, chemical, breakbulk and container vessels, all over the globe.Tom has also been involved in the international insurance, manufacturing, exporting, marketing and in the trade finance arenas... In senior

management and ownership positions, with an emphasis on logistics, compliance and security. He has authored over 225 articles and several books, most recently … Global Sourcing Logistics AMACOM 2007 … on international trade and has lectured all over the world on varied subjects involve with global trade. He is considered by many leading professionals to be top in

the field of global logistics and international operations.Tom has numerous interests in third party logistics, global trade and international business. He is on the board of many companies and organizations, such as but not limited to: American River International, FSI Global Logistics, the Trade Resource Group of Customs in Washington, DC, the Small Business Exporters Association, North American Exporters Association, the Exporter Magazine, American

Management Association and the World Trade Institute, New York District Export Council.Tom currently serves as CEO and Managing Director of American River International, a premier consulting and logistics firm and he can be

reached at 631-396-6800.

Managing Chemical Global Supply Chains:

Imports/Post 9/11

Managing Gobal Supply Chains: Post 9/11American River International, Ltd. 28Feb08

Overview• Post-9/11 Mindset of the US Government• Chemical Supply Chains Nature of the Product Nature of the Supply Chain• Government Initiatives

• C-TPAT• 10 + 2• 9/11 Commission Law• USPPI

• Denied Parties Screening• Deemed Exports• SOX• Compliance and Security: 9 Strategies

Managing Gobal Supply Chains: Post 9/11American River International, Ltd. 28Feb08

Post-9/11 Mindset of theUnited States Government

• Supply Chain Information and Control: Lack of Knowledge

• Push out the Borders• Restructure the Government• Legislation/Regulation/Process Controls• Partner with Business: Identify the Good Guys &

Bad Guys• Muster Foreign Support

Managing Gobal Supply Chains: Post 9/11American River International, Ltd. 28Feb08

Government Initiatives

• CSI• 24 Hour Manifest• C-TPAT• ISA• Other Government Agencies: ATF, FDA, DOT• Legislation and Empowerment• Denied Parties Lists• Work-In-Progress

Managing Gobal Supply Chains: Post 9/11American River International, Ltd. 28Feb08

C-TPAT

• Partnering with Business• What is it?• Avoid Consequences• Provide Incentives and Benefits• Work-In-Progress• Where does your company stand?• The Process: Application, Validation, Plus

Managing Gobal Supply Chains: Post 9/11American River International, Ltd. 28Feb08

USPPI

• What is it?• Affects export controls• Area of focus of BIS/DOC/CBP EE• Making the principal manufacturer and/or

distributor responsible for the export• Control the INCO Terms

Managing Gobal Supply Chains: Post 9/11American River International, Ltd. 28Feb08

Deemed Exports

• Control of capability, wherewithal, technology and transfers of information to a foreign national

• Area of focused enforcement:• DHS … Immigration sharing with BIS/CBP• Building controls into Operations, Sales, and

Purchasing• Education and Training, SOP’s

Managing Gobal Supply Chains: Post 9/11American River International, Ltd. 28Feb08

Sarbanes-Oxley

• Often Missed in the Global Supply Chain• SOP’s• Detail, detail, detail – documentation, record-

keeping, classification, origin information, valuation, choice of providers/carriers, packing, marking and labeling, etc. etc.

• Anything with Financial Consequence• Connectivity within the company!!!

Managing Gobal Supply Chains: Post 9/11American River International, Ltd. 28Feb08

Compliance and Security:9 Strategies

• Senior Management Engagement• Assessment, Identify Issues, Benchmarking• Assignment of Person(s) Responsible and

Accountable• Connectivity Structure• Plan of Action, Persons, Timing• Creation of SOP’s• Develop Technology Options• Training and Education• ISA and/or Independence

Managing Global Supply Chains:Post 9/11

Review and Questions:Thomas A. Cook

tomcook@americanriverintl.com www.americanriverintl.com

1-800-524-2493

Institute for Supply ManagementChemical Group/Texas Forum