The Essential Foundation: Integrated Systems

Efficient air cargo supply chains require five interconnected systems: engineering (system design), marketing (customer facing), cargo handling and processing, inbound / outbound logistics, and financial management. Compliance with the CCSP introduces another critical component to this mix: the need for cargo screening and a secure chain of custody. Shippers and the air cargo Industry are justifiably concerned that the introduction of this “extra step” to the supply chain management process has the potential to slow the system down, impeding the flow of commerce with damaging financial effects.

Opportunities for improved supply chain speed and efficiency tend to be at the boundaries of these systems. The greatest advantages will come from focusing on (1) integrating the five systems intra-organizationally, (2) integrating the supply chain processes with collaborating supply chain partners, and (3) implementing an integrated, systemic approach to supply chain security and employing best practices throughout the system. But integration alone will not achieve unimpeded supply chain flow; management must learn to deal explicitly with the impact of uncertainty on the supply chain decisions they make. While sharing data is essential, simply passing data will not be sufficient to substantially reduce the impact of uncertainty; predictable, verifiable, repeatable processes, close collaboration with supply chain trading partners and the effective use of advanced information technology and tools are the keys to achieving and sustaining a secure, high velocity air cargo supply chain.

Application of the “Five Principles of Secure Supply Chain Design and Operation” ⁽³⁾ can mitigate the impact of enhanced security procedures and increase the flow of commerce. Secure, high velocity supply chains share several key attributes. We have identified five guiding principles that provide the essential foundation for securing the air cargo supply chain while expediting the flow of commerce. Each principle is explained below, with illustrations of its applications.