Major American Companies Securing Cargo and Profits

The goal: to prevent bombs, biological weapons and security threats from reaching U.S. borders

That level of transparency allows a company to reduce excess inventory, take immediate action if a crucial item is delayed in transit and meet important deadlines, said Debbie Turnbull, program manager for supply chain security in the import compliance office at Armonk, N.Y.-based IBM Corp., a C-TPAT pioneer. It helped to fund the Manufacturing Institute study.

"We see supply chain security as a competitive differentiator for IBM," Turnbull said. "At the end of the day, keeping a customer happy is really what it's about."

This fall, IBM and Maersk Logistics of Denmark will roll out tamper-resistant embedded controllers, or TREC devices, that transmit real-time data from containers located anywhere in the world -- even the middle of an ocean, said IBM spokesman Chris Sciacca.

With the TRECs, firms can take immediate action in response to unexpected circumstances, he said.

For example, a container of bananas meant for supermarket shelves that is delayed can be diverted to a baby-food company that uses more ripened fruit. Or, if flat-screen televisions are rocked and damaged by a storm at sea, the manufacturer can be alerted to order a new supply and minimize the delay to retailers during a busy holiday shopping season, Sciacca said.

Solutia Inc., based in Town and Country, found C-TPAT participation to be a logical extension of post-9/11 security measures it took as a member of the

American Chemistry Council trade group, said Cheryl Montgomery. She retired from Solutia as head of international trade, then returned as a consultant on C-TPAT compliance.

Solutia executives "all said it was the right thing to do. Plus, they have some businesses that are highly dependent on imported raw materials and they don't want to take any chances" that a delay might shut down a domestic manufacturing line, she said. "Predictability of our supply improves the confidence of our customers."

Since joining C-TPAT, Solutia has seen fewer Customs inspections, each of which can cost the company hundreds or thousands of dollars for port storage, transportation and labor. Reduced handling of goods by agents also means there is less chance for damage, Montgomery said.

Such concerns are not limited to manufacturers.

Fenton-based UniGroup Inc., parent company of UniGroup Worldwide UTS, United Van Lines and Mayflower Transit, became C-TPAT-certified last year for international household moves. Its clients include government employees and Fortune 500 executives.

Before 9/11, "we were very concerned about the security of the property we were moving. But it was primarily from theft or damage," said John Hiles, director of UniGroup Worldwide UTS Operations. The company has since shifted its standards to maintain the integrity of the U.S. supply chain.

The change has yielded mixed results in a competitive industry that represents only 10 percent of U.S. imports and exports, he said.

"What it really has cost us is additional effort and, in some cases, businesses that have chosen not to work with us because of our restrictions," Hiles said. "At the same time, we've had new businesses come to us because of our security measures."

Indeed, C-TPAT is creating a growing community of companies that prefer or will only work with others that are certified. Such is the case with Boeing, IBM and Brown Shoe Co.

The shoe company, based in Clayton, "got into C-TPAT because we thought it was the right thing to do," said James Carder, vice president of logistics.

Double-wire fencing, security cameras, guards, smart seals and satellite-enabled systems that alert police if a container goes off course all are part of the company's consolidation warehouse in Brazil, Carder said.

The spread of C-TPAT is important to any company that does international business, because the global supply chain is inextricably intertwined, IBM's Turnbull said.

"The supply chain is only as strong as its weakest link. If something happens on a boat to a particular container, it's going to affect everything on there," she said.