BUS606: Operations and Supply Chain Management

There is no single path to achieve supply chain security. There is an overall consensus on the need to improve the security of the supply chains, world-wide. There is a multitude of programs, some endowed with the force of international law, others merely optional, with an array of in-between initiatives, including some that will likely become compulsory in practice, due to market pressure, and some others, technology-based, that are striving to become mandatory.

The layered approach seems to enjoy the broadest consensus, world-wide, and it is important to follow how it will fare in relation to the US 100% scanning law, and vice-versa. Within the layered approach, the mutual recognition between national certification programs remains a serious issue, in spite of a professed consensus.

Stakeholders also need to keep an eye on the question of technology. Some of the proposed technological solutions might provide significant improvements in the conduct of SCS measures. They must however adapt to the existing structure and infrastructure of international transport, and correspond and contribute to the needs and requirements of the transport industry and the international trade flows, not vice-versa. Technology-based solutions must remain proportionate, well thought-out, affordable and sustainable in all types of scenarios to reduce the risk of further marginalization of smaller ports and economies that could not afford the related investment and operational costs. In addition, lawmakers must ensure that endorsed technological solutions are mutually compatible and comply with universal technical and operational standards.

Finally, for Government Agencies, Port Authorities, private importers/exporters and transport operators, the time to start looking seriously at SCS is NOW.