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    Risk Management: The ISCPO Conference

    ISCPO is a conference and trade show tailored to promote security in the global supply chain. Providing training and education on issues important to manufacturers, retailers, distributors, logistics and legal/law enforcement sectors since 2011, this year’s show included some fascinating speakers.


    Active Shooters in the Supply Chain

    Rod Fulenwider, General Manager at D&L Protective Services discussed establishing a security plan to deal with active shooters in the workplace, an event that currently occurs once every 3 weeks, with an average that has been steadily rising for the last ten years. 2015 is on track to be 10% higher than the previous year alone, and the average number of deaths is tragic: 14.3 when the shooter is stopped by police, 2.3 when the shooter is stopped by civilians. The difference is largely due to the response time necessary: the minutes involved between an emergency call to police through the time they are able to arrive at the scene.

    Fulenwider recommended companies devise and rehearse an emergency response plan that includes situational awareness, identifying an internal team of responders and the role each one plays, as well as devising plans that include isolation of the event and evacuation of staff.

    Latin America Cargo Theft and Trends

    DHL VP of Global Security David Jones cited the cargo theft challenges involved in moving freight in Brazil and Mexico, which currently have the highest volume of cargo thefts worldwide. Together, they account for approximately 60% of all global cargo crimes.

    17,500 drivers were hijacked in Brazil in 2014, and 2015 will likely see an increase in volume. Freight and manufacturing companies operating in Brazil need to devise complex security strategies to combat the problem, as a full 99% occur while goods are on the road. One of the cited problems is legislative: while it is illegal to steal and sell stolen goods, it is NOT illegal to buy them.

    In Mexico, 97% of cargo thefts involve hijackings, 67% of which occur at road blocks. The overwhelming majority of the freight companies are small businesses, for whom such losses can be catastrophic.


    3PL Audit Program Update

    Wes Bank, Director of Security at DHL Global Mail, gave an update on the 3PL Audit Program. The program is in response to security concerns in using regional carriers, whose warehouse clerks are often agency-hired labor, while drivers are often independent contractors. To ensure integrity in the supply chain once goods are tendered for delivery, he recommended:

    • Establishing contractual security requirements including audits, investigation standard controls and physical security standards
    • Making weekly carrier calls
    • Promoting the loss prevention role
    • Joining ISCPO
    • Participating in the audit committee

    Bank encouraged carriers not to train and treat contractors like employees and also identified audit goals of reducing daily loss by scanning, as well as adopting carrier security requirements that require them to self-audit and share the data.


    Business Continuity Planning

    Jim Evans of Texas Instruments discussed the value of business continuity planning (BCP) as part of disaster recovery. He encouraged companies to look at BCP on a companywide basis, rather than by location. With 15 factories in 9 countries, many of which are situated in active fault zones throughout Asia, TI is no stranger to how effective a BCP team can be. At TI, they rely on only 60 people in the company to help manage a crisis, citing that the smaller team size encourages better ownership of responsibilities.

    The BCP team analyzes where products are built and how long it would take to transfer production to another location in the event of a disaster. They further devise a process that includes activating plans, notification, organizing, prioritizing and evaluation. Every event is rated on a scale of 1–4. The crisis management team oversees BCP, along with their incident managment and business recovery teams. Their response planning always focuses around production, and protecting human assets is their first objective.


    Every ISCPO meeting is vital to the security of manufacturers and shippers alike: new hotspots are identified, new tactics thieves use and the strategies to combat them are discussed. No company could successfully combat all the risks without such vital intel.

    Here at Electric Guard Dog, we encourage all our supply chain customers to participate, and we participate ourselves. We’ll keep you posted on the next ISCPO meeting, and certainly hope to see you there.

    On a happy note, ISCPO awarded $1,500 to the Pat & Emmitt Smith Charities, which specializes in childhood education, in order to help them attain their goal of taking sponsored kids to visit Harvard this year!

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