Table of Contents
List of Figures
- Figures in Chapter 1
- Figures in Chapter 2
- Figures in Chapter 3
- Figures in Chapter 4
- Figures in Chapter 7
- Figures in Chapter 8
List of Tables
- Tables in Chapter 1
- Tables in Chapter 3
- Tables in Chapter 4
- Tables in Chapter 5
- Tables in Appendix: Some Useful Concepts and Analytical Tools
Landmarks
Global Supply Chain Security and Management
Appraising Programs, Preventing Crimes
Darren J. Prokop
Professor of Logistics, University of Alaska Anchorage
Table of Contents
Copyright
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Dedication
This book is dedicated to my parents, Daniel and Helen, for teaching me how to dream and to my wife, Stephanie, for fulfilling my dreams.
Preface
This book presents a detailed overview and appraisal of supply chain management in the context of security. In most books dealing with supply chain management the government is taken to be a rather nebulous entity; and when it does appear it is usually as a source of preexisting constraints to business. These constraints would involve compliance with the tax system, honoring contracts, obeying laws and regulations, etc. In other words, government is exogenous to supply chains and to the strategic planning involved in setting them up. In the context of supply chain security, however, the government is a prominent player; indeed, it has a place in the supply chain alongside traditional vendors, producers, consumers, and transportation providers. All of these players have a role in helping to secure the supply chain over various areas of vulnerability. These areas include items in storage, items on the move, and data in cyberspace.
The post-9/11 world is one punctuated by concerns over security. Furthermore, many security programs are in a state of flux. Government is playing its traditional role of policing business activity; but it is also offering a role as a supply chain partner to businesses. This is occurring not only in crime and terror prevention but in natural disaster and emergency management. This book examines government in its dual role of policing and partnering. Building government into the supply chain highlights one of the tensions that is a recurring theme in the book. Basically, partnership is an important ingredient in supply chain management; but the government has the unilateral power to decide when to replace partnership with law enforcement. How should businesses plan and implement their security procedures when dealing with this special partner?
This book highlights other tensions apart from partnering and policing. Proceeding from the establishment of trust to actual cooperation is an important journey that all supply chain partners need to make. Using a game theoretic framework the process of how to achieve a cooperative result is examined. This also includes whether or not a cooperative outcome is a stable one.
There is a tension between making decisions through algorithms and through human experience and reflection. New technologies are emerging which may revolutionize the practice of supply chain management and the gathering of information necessary to secure supply chains. Data can be shared quickly along a supply chain connected by a computer network. Items can be tracked as they move along transportation routes and through particular access points. Advances in Big Data mean that an avalanche of data can be generated over a short period of time. However, human judgment is still necessary to separate data from noise and turn the data into useful information. In other words, a technology is only as useful as the people who can use it to make meaningful decisions.
With so many moving parts to todays international supply chains and so many points where vulnerabilities may reside, it may be difficult to maintain a so-called efficient operation. Indeed, if a crisis occurs or a threat needs to be reacted to the process can be messy and chaotic. At this point it is a matter of being effective as opposed to efficient. Effectiveness involves getting a handle on the disruption/disaster as fast as possible with as much resources as possible. This is not efficient; that is, it is not a process based on market signals and negotiating. Efficiency is a luxury when normalcy has returned to the supply chain.
Finally, there is a tension between trade flows and security programs. A supply chain with no logistics (i.e., no flows of items, people, etc. between partners spread over distances) would resemble a series of isolated fortifications. Certainly, these are easier to secure; but it is the flow of trade which fuels competition, incentivizes cost control, and spurs innovation. So, if trade is good for the economy it means that securing supply chains will face the challenge of dealing with distance, multiple routes of transportation, and multiple ports of entry. Since 9/11 the US government has developed several programs to address these challenges. Many have had the benefit of private sector input. Yet, tensions remain. Security is a transaction cost; and any extra cost comes at the expense of some foregone production and trade. On the other hand, security programs are necessary to deal with any potential or realized threat. It is not an option in todays economy to leave a supply chain completely unsecured. Crime, terrorism, and natural disasters are a fact of life and resources must be devoted to dealing with them.