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International Trade Experts

C-TPAT Kicking and Screaming?

I've met a new SME ally through this blog, Philip Spayd of Global Trade Systems and formerly of Customs. Phil makes a very good point about SMEs and their importance in the supply chain and its security:

"Our clients at GTS—all predominately SMEs...have for the most part approached C-TPAT as an obligation to be fulfilled.  Often they are pressured to join by customers or other business partners who are C-TPAT certified. They did not initially approach C-TPAT from a strategic interest in improving supply chain management or in recognizing risk within the supply chain. They wanted to take the basic actions to achieve certification.  We help our clients fulfill these needs, but also help them to see the benefits they can achieve in recognizing other risks in their supply chain, and laying the foundation for being able to respond to disruptions.

A point that I believe is important for SMEs to understand is that C-TPAT and SAFE, together with the initiates such as pending product safety and legislation, the TSA air cargo screening initiative (Certified Cargo Screening Program), and efforts to demonstrate environmental responsibility within the supply chain, will create entire classes of firms that are known entities that meet basic international security (and safety and environmental) standards, and that many business relationships will be built on this status.  The risks of doing business with companies outside the network of authorized economic operators (or known parties, or whatever we decide to call them) will be too high.

So, my advice to SMEs would be to find a practical way to approach C-TPAT, and to use it not only to achieve C-TAPT certification, but as a platform to recognize other risks within their supply chains, and to move into the realm of being a known, responsible, stable and secure member of the supply chains of which they are a part."  Well said, Phil.

To C-TPAT or Not to C-TPAT, that is the Question

Survey To view the results of the survey conducted by TBI, Download C-TPAT_Survey_12-07.pdf. Most recently these results have been presented to the CBP annual C-TPAT conference. While the results are more anecdotal than scientific, the sense is that C-TPAT is not a program whose time has come with SMEs. Alternately, most importer SMEs polled reported making improvements in their supply chain security since 9/11 regardless of participation in C-TPAT. These results were also presented to the World Customs Organization in Brussels at the December 2007 SAFE conference by TBI. Initially, I was amazed at the positive and interested response I received from the SAFE conference attendees. However, after sitting through one too many canned presentations of “County X, Y & Z’s security programs” I realized that real information from real companies was a breath of fresh air for the SAFE conference attendees. FYI, to our importer-exporter members, SurveyMonkey and its competitor Zoomerang are a great way to get feedback you’re your customers on how they rate your product/service and how you can improve your product/service. TBI will be using this tool going forward to keep in touch with the attitudes, opinions and needs of SME importers/exporters.