The Shipper’s Dilemma: “to screen or not to screen”

For shippers, the decision to participate in the CCSP and screen goods “in-house” versus outsourcing screening to an intermediary or an air carrier involves the evaluation of many variables. Among them are facility set-up costs and operating costs, inventory policies and customer service and satisfaction concerns. The following tables summarize these considerations:

 

1. Cost Considerations

 


In-house screening

Outsourced screening

  • Secure screening and storage areas

  • Improvements in general facility security

  • Implementation of new operational procedures (i.e. chain of custody methods)

  • Screening technologies

  • Training costs

  • STA certification costs

  • Third party security assessments

  • IT infrastructure to manage screening and security operations

  • Liability

  • Maintenance of initial cost areas

  • Direct screening fees from screening entity

  • Indirect fees from screening entity, which may include insurance, transportation, chain of custody methods costs

  • Screening contract set-up

  • Management and monitoring costs

 

2. Other Business Considerations

 


In-house screening

Outsourced screening

  • Greater control over lead times and facility security controls

  • Minimal delays due to reduced scrutiny downstream, especially for goods that are difficult to screen with technology

  • Opening the packaging downstream may have significant adverse affects on the product and/or customer requirements (e.g. agriculture, human remains, high value goods)

  • Efficient in-house processes make costs and quality more controllable

  • As an IAC or ISCF, may be able to offer screening services for others

  • Size and scale of goods shipment may not be conducive to in-house screening benefits (i.e. too small to screen efficiently and cheaply)

  • Goods do not travel frequently on passenger aircraft

  • Nature of business operations do not focus on security controls

  • Current business model outsources most logistics operations

 

A chart that may be useful to companies trying to decide on participating in the CCSP can be found in Appendix II (2): “Are you prepared for 100% screening?” If a company is already participating in supply chain security and manufacturing quality programs such as C-TPAT, TAPA’s FSR/TSR Standards or cGMP, it is likely that joining the CCSP will make good business sense, and the scope of effort to become certified will be relatively modest.