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Freight Security and the
World Economic Forum
December 5, 2002
Agenda
The Real Threat to Global Supply Chains
The Problem – Where to Begin
The Call to Arms
Questions
©Accenture 2002 All Rights Reserved
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A Conceptual Framework
The Transportation Security Model is a conceptual model or
“framework” designed to:
 Build an understanding of the security threats facing the
transportation system
 Create a common view which addresses the security issues of
each mode of transportation
 Provides a structured approach to collect and analyze risk
management data
©Accenture 2002 All Rights Reserved
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Transportation Security Model
The model was designed around a basic transportation process
applicable to all modes of transportation and the potential threats to
each mode.
Definitions
Transportation
System
Transportation
Mode
Mode
Entry Points
Main Threat Areas
©Accenture 2002 All Rights Reserved

The entire system as a sum total of all
transportation modes

Method for moving goods and people
within the system (Air, Maritime, Rail,
Highway)

Points or locations at which threats may
enter the transportation mode

Focused areas or entities which have
credible potential to introduce threats into
the transportation system
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Transportation Security Model - Examples
Transportation
System
Air
Airports
-Domestic
-Foreign
Highway Maritime
Border
Checkpoints
Pickup and
Delivery Points
Passengers
Employees
Employees Hazardous Material
Cargo
Cargo
©Accenture 2002 All Rights Reserved
Ports
-Domestic
-Foreign
Shippers
Employees
Cargo
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Agenda
The Real Threat to Global Supply Chains
The Problem – Where to Begin
The Call to Arms
Questions
©Accenture 2002 All Rights Reserved
6
The Threat
The threat is systemic:
 While there are a number of individual activities or programs,
individual action will not provide the required security
 Cargo is the thread of continuity across modes
 Modal exchange and interchange points provide significant risk to
compromising supply chain security regardless of a company’s
individual activities
 The threat is fluid and will change in response to any activities
©Accenture 2002 All Rights Reserved
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The Response
There has not been a comprehensive response:
 There have been a number of approaches suggested to support
freight and cargo security. Most of these focus on a specific
aspect or component of security.
 To date there has not been an overall vision or approach defined to
support this critical function.
 While the desire to avoid impacting supply chain efficiencies has
been acknowledged, there has been little work or analysis to
suggest how this can be accomplished
©Accenture 2002 All Rights Reserved
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Agenda
The Real Threat to Global Supply Chains
The Problem – Where to Begin
The Call to Arms
Questions
©Accenture 2002 All Rights Reserved
9
Program Background
The Freight Security Initiative was developed to provide the
industry with a platform it could leverage to take a pro-active
stance on addressing freight security.
 At the 2002 Annual Meeting in New York, the Logistics and Transportation
Governors discussed the issue of “Security” and its impact on the industry.
 The World Economic Forum, Accenture, and the Massachusetts Institute
of Technology (MIT) partnered to explore relevant industry-wide issues
that could be addressed.
 Decision was made to put in place a program to move the issue forward.
©Accenture 2002 All Rights Reserved
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Program Objectives
The program will provide a means to identify and communicate
inter-modal security issues and create a framework for industry to
engage governments and controlling entities.
 Crystallize and communicate the issues regarding freight security
 Conduct a fact-based analysis of these issues and develop corresponding
recommendations
 Provide recommendations from the business community to governments
and controlling entities such as IATA, US DOT and the EU to develop and
implement programs and processes for global freight security
 Identify and mobilize the appropriate resources to influence these issues
and implement the recommendations
©Accenture 2002 All Rights Reserved
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Project Plan
The initial research will be developed to support the Annual
Meeting in Davos with both qualitative as well as quantitative
research.
 Conduct fifteen to twenty interviews with senior executives representing
carriers, shippers, government authorities, and insurance companies
 Conduct a broad survey of executives in the transportation industry based
on the interview responses
 Analyze interview and survey results and develop key messages
 Develop and disseminate a white paper for the 2003 Transport and
Logistics Governors Meeting
©Accenture 2002 All Rights Reserved
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The Research is Structured Around Our
Five Freight Security Hypotheses
Industry Perception
of the Threat
Anecdotal evidence supports our belief that the industry views the
threat to freight security to be highly relevant.
Internal Security
Initiatives
Organizations are reviewing security procedures and policies, but
there has been little impact on reducing the overall threat to freight
security.
Government
Initiatives
Governments are taking a controlled response to freight security,
but still lack unilateral security measures to deal with the issue.
Customer Security
Requirements
Shippers will rely on carriers to lead the effort in developing
industry and organizational programs to address the security
issue.
The Economics of
Security
An effective freight security program will increase supply chain
costs, however there currently is no clear economic model for
providing enhanced security.
©Accenture 2002 All Rights Reserved
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This Platform can be Used for an Industry
Led Response in Key Focus Areas
Illustrative
Facility and
Operations
Assessments
Conduct assessments and certify the operations of each provider
in the supply chain – shippers, carriers including maritime, rail,
truck, air, and bus, freight forwarders, and port operators
Shipment Data
Repository
Establish a standard repository for all shipment data that includes
the origination, route, and each “handling” that occurs.
Tracking Technology
Utilize technologies – RFID, GPS, Smart Seals – to track shipments
in route and potential tampering activities.
Pre-Emptive
Screening
Utilize shipment manifest information to target suspect or high risk
shipments for detail inspections or analysis.
Re-Active
Countermeasures
©Accenture 2002 All Rights Reserved
Utilize technologies to track vehicle locations against preauthorized routes and schedules. If deviations occur, vehicles
could be stopped electronically.
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Agenda
The Real Threat to Global Supply Chains
The Problem – Where to Begin
The Call to Arms
Questions
©Accenture 2002 All Rights Reserved
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