THE EVENTS OF 9/11
Managing Global Supply Chains
THE SHIFT ON 9/11
 Supply Chain Executives Goals
 Cost Effective Purchasing, Logistics, Operations
 International business came to a stand still
 It was a very uncertain time
IMMEDIATE CHANGES THAT OCCURRED:
 Security was increased
 Flying routes were reduced
 Shipping Costs Increased
 Examination of products and documents taken seriously
 Laws changed for import/export
 Supply lines changed
TRANSPORTATION INDUSTRY
 Immediate security implementations among all modes of transportation




Seals
Security Personnel
New Documentation Required
Etc.
 Increased costs were an immediate result
 Several companies went under
CSI – CONTAINER SECURITY INITIATIVE
 A program like an Embassy
 Where US Customs Activities Happen in Foreign Ports
FINES & PENALTIES
 What was once overlooked in the area of import/export now exacted severe fines
& penalties
OSHA
 Occupational Safety and Health Administration
 Creates laws
BOTTOM LINE
 The United States is going to be proactive in fighting terrorism
 We lost certain freedom and liberties that day that won’t come back
RISKS
 Foreign Cultures
 Language
 Weather
 War
 Getting paid 
 Strikes
 Etc.
GLOBAL TRADE
 People that become experts at global trade
IMPORT SUPPLY CHAINS
Managing Global Supply Chains
Chapter 2
CUSTOMS
 Responsible for the receipt of products into our country from other countries
 Agencies include




U.S. Customer and Border Protection (CBP)
Department of Homeland Security (DHS)
Their job is to manage and protect the border at ports of entry
Balance trade and travel with safety
PROGRAMS WITH NORTH AMERICAN
COUNTRIES
 Mexico and Canada for expedited border crossing (low risk)
 FAST
 SENTRI
 C-TPAT
NOT JUST KEEPING THINGS FROM GETTING
“IN”
 The goal of these agencies is to also protect things from getting out like weapons,
etc.
TOOLS WE CURRENTLY HAVE TO SECURE
BORDERS
 Surveillance Systems
 Unmanned Vehicles
 Video Surveillance
 Geographic Information Systems
 Used to track illegal immigration of people or products
HOW WE PROTECT OUR FOOD – FOOD &
DRUG ADMINISTRATION
 As we import food
 Companies must register with FDA
 Give Prior Notice
ACE – AUTOMATED COMMERCIAL
ENVIRONMENT
 Crosses all customs services
 Help alleviate the overwhelming demand of inspections required due to new
regulations
 Part of the modernization initiative
PURCHASING
 Compliance must be considered as a part of the purchasing process in addition to:




Quality
Delivery time
Price
Etc.