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IMPROVING SECURITY THROUGH VISIBILITY

Common assessment and analysis of risk in
global supply chains

Prologue

Common assessment and analysis of risk in global supply chains

CALL FP7-SEC-2010-3

Collaborative project/Integration project
SEC-2010.3.2-1: Monitoring and tracking of shipping containers
system

CASSANDRA is a 3 year project, from June 2011 to May 2014
and part of the European Commission’s Seventh Framework
programme for Security

2

Overview

 Why CASSANDRA?
 Goal & Benefits
 Security framework
 New approach for risk assessment
 Data pipeline concept
 Living Lab demonstration
 Final delivery
 CASSANDRA partners

4

Why CASSANDRA?

 Increasing flow of containerised cross-border trade
 Growing emphasis on security

Need for efficient and effective security and control

5

Goal

 CASSANDRA’s goal is to deliver 3 stakeholder
benefits for the price of 1

CASSANDRA
3 for 1

Business “Improving
performance”

Customs “Improving efficiency
and effectiveness”

General (Society) Facilitate EU
and global trade

6

CASSANDRA will reach its goal

 … by developing a data-sharing concept
&
 … by introducing a new approach for risk
assessment

 Demonstration of the solutions and building
consensus are essential parts of the project

7

Benefits for Business

Improved Supply chain operational performance

CASSANDRA Data sharing CASSANDRA
Customs benefits

Reduction of Improved insight Reduced
administration in performance involvement of
costs and supply chain Customs (and
and errors risks other authorities)

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Benefits for Costums

Improved efficiency

CASSANDRA Data CASSANDRA Risk
sharing assessment

Improved effectiveness
(and higher hit rate)

Better
Improved data identification of More focus
for secure and safe on high risk flows
risk assessment supply chains

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General benefits

 By improving supply chain performance
CASSANDRA will facilitate global trade
– Trade facilitation for developing countries will also be tested
in a real world Africa – Europe trade lane
 New risk assessment & data sharing will
– improve societal safety and
– gives opportunities for product safety as well
 Data sharing concept also brings opportunities for
insight in e.g. CO2 footprints

10

Security framework (1/2)

 Events can cause disruptions in the supply chain
 Security strategy influences (type of) impact

Events SUPPLY CHAIN Disruptions
SECURITY STRATEGY

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Security framework (1/2)

 Insight in supply chain vulnerabilities are of central
importance when determining strategy

Supply chain security strategy

Logistics structure and concept
External sources (dependencies)
of risk

e.g. Natural disaster, theft
Vulnerabilities Disruptions
External sources of risk
Internal sources e.g. Discontinued supply,
of risk Security enhancing measures supply chain congestion

Analysis Preventive Reactive
e.g. Strike, poor data quality tools measures measures

e.g. Sealing e.g. Contingency
A container plans

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New approach risk assessment (1/3)

 New risk assessment for Customs based on Risk
Based Audit (RBA) approach
 RBA
– focuses on risks
– focuses on underlying causes and
– shifts attention from transactions to processes

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 Piggy-backing means reusing business data for
government control purposes
 Customs can piggy-back on business risk
assessment

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 By aligning risk assessment for customs and
business, ...
 ... business will be provided with operational risk
information, while ...
 ... giving maximum leverage for customs risk
assessment

15

Data pipeline concept (1/4)

 Subsets of supply chain data are held by different
parties in the chain
 Reliability of data is not always clear

 Lack of visibility

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Future Customs and International Trade Systems
3rd Country EU
Regulation Regulation
Data & Document
layer
Organisational

Freight Freight
layer

Consignor or Forwarder or Forwarder or Consignee or
Exporter 3PL Container/Carrie 3PL Importer
r
Physical layer

Port Port
1 2
Country A Country B
CARGO CARGO CARGO
CARGO

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 Data will be captured at the source
 Data can be pulled from the pipeline by authorised
business and customs
– Special attention will be given to data security and
accessibility levels
 CASSANDRA data pipeline will bring visibility and
also facilitate RBA

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 CASSANDRA will bridge gaps between existing
solutions with state of the art IT
 Achieving interoperability of heterogeneous systems
with standard, open and flexible communication is
key
 Result will be a virtual data pipeline

19

Living Lab demonstration

 In a Living Lab, innovations are tested in a real
world setting
 CASSANDRA solution (both risk assessment & data-sharing)
is tested in 3 labs:

– Asia  Europe Each lab holds more trade lanes
– Europe  US in which actual stakeholders
– Africa  Europe participate

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Final deliverables

 CASSANDRA will..
– ..deliver an improved and tested risk assessment
methodology for both business and Customs
– ..deliver a new and tested concept for data-
sharing in supply chains, thus increasing visibility
– ..introduce a combination of new risk assessment
and data sharing thus “Improves Security
through Visibility”
– ..advise on stakeholder benefits and
implementation

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CASSANDRA consortium

 CASSANDRA consortium comprises of 27 partners
in the fields of
– Supply Chain Management
– Logistics
– IT
– Research
– Customs
 These partners, from 10 different countries have a
total budget of €15 million with almost €10 million
funding by the EC

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Further information

 For more information concerning the CASSANDRA
project and the consortium partners, please visit
 www.cassandra-project.eu

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