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Common assessment and analysis of risk in global supply chains is a project that will:
• Facilitate the adoption of a risk based approach in the supply chain, on the basis of integral monitoring data on cargo flows and container integrity,

•Build interfaces between existing visibility solutions, and visualization tools, in an open architecture,

•Demonstrate the integration of data and risk assessment in supply chains in three major trading routes to and from Europe

•Evaluate the quality of the integral data with business and government.

•Facilitate a dialogue between business and government to gain consensus on the criteria for data sharing between business and government.

The project participants cover all relevant stakeholders, including some global players. This expertise will guarantee the successful adoption of the CASSANDRA solutions. The value drivers in CASSANDRA will include logistics efficiency benefits and security benefits for business as a result of the risk self assessment.

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  1. 1. IMPROVING SECURITY THROUGH VISIBILITYCommon assessment and analysis of risk in global supply chains
  2. 2. PrologueCommon assessment and analysis of risk in global supply chains CALL FP7-SEC-2010-3 Collaborative project/Integration projectSEC-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
  3. 3. Overview Why CASSANDRA? Goal & Benefits Security framework New approach for risk assessment Data pipeline concept Living Lab demonstration Final delivery CASSANDRA partners 4
  4. 4. Why CASSANDRA? Increasing flow of containerised cross-border trade Growing emphasis on securityNeed for efficient and effective security and control 5
  5. 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
  6. 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
  7. 7. Benefits for Business Improved Supply chain operational performance CASSANDRA Data sharing CASSANDRA Customs benefits Reduction of Improved insight Reducedadministration in performance involvement of costs and supply chain Customs (and and errors risks other authorities) 8
  8. 8. Benefits for Costums Improved efficiencyCASSANDRA 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 flowsrisk assessment supply chains 9
  9. 9. 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
  10. 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 11
  11. 11. 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 12
  12. 12. 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 13
  13. 13. New approach risk assessment (2/3) Piggy-backing means reusing business data for government control purposes Customs can piggy-back on business risk assessment 14
  14. 14. New approach risk assessment (3/3) 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
  15. 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 16
  16. 16. Data pipeline concept (2/4)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 17
  17. 17. Data pipeline concept (3/4) 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 18
  18. 18. Data pipeline concept (4/4) 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
  19. 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 20
  20. 20. 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 21
  21. 21. 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 22
  22. 22. Further information For more information concerning the CASSANDRA project and the consortium partners, please visit 23