Most Commonly Asked Questions About Supply Chain Security

Today’s world is interconnected and fraught with risks. Securing supply chains has become more crucial than ever. What started as a post-9/11 initiative to prevent threats like smuggling and terrorism has evolved into a comprehensive system for safeguarding the global flow of goods. Supply chain security now encompasses not only physical threats but also cybersecurity, fraud prevention, and resilience against disruptions. 

Whether you’re an importer, exporter, or logistics provider, understanding supply chain security is essential for protecting your business and contributing to global trade stability. Here are the most commonly asked questions about supply chain security, shedding light on its importance, key elements, and the role it plays in building a resilient global economy.

What is supply chain security?

Supply chain security is about preventing the introduction of terrorists, their weapons, and their parts of weapons, into the US by inserting something into an inbound supply chain that doesn’t belong.  Simply put, it’s about preventing smuggling of items that can be used as weapons against the United States.

Supply chain security is a field created as a response to the attacks of 9/11. After the attacks the US government became concerned that the next threat would come in the form of a bomb in a shipping container, detonated outside a US port. This would shut down a number of seaports, disrupting the US economy–all from across the ocean.

Is supply chain security a US-only program?

No. The World Customs Organization has a global standard called SAFE. And countries and customs unions around the world have their supply chain security protocols as well. For example, Canada has Partners In Protection. 

What are the main threats to supply chain security?

Before the attacks of 9/11, securing a supply chain meant mitigating loss due to two sources: theft and damage during shipment. In other words, it meant preventing someone from removing something from a supply chain. Today, it also means the opposite: preventing someone from inserting something into a supply chain.

What are the basic elements of a supply chain security program?

For US importers participating in the CTPAT program, there are Minimum Security Criteria.  The primary areas are:

• Corporate Security
• Transportation Security
• People and Physical Security

These three areas are broken down further into 12 focus areas.

What is the role of CTPAT (Customs Trade Partnership Against Terrorism) in supply chain security?

CTPAT is a voluntary program by U.S. Customs and Border Protection (CBP) that partners with businesses to enhance supply chain security. Participants benefit from reduced inspections and faster processing of goods, access to the CTPAT Portal, and are assigned a Supply Chain Security Specialist, who is like an account manager, at CBP.  

What are the benefits of embracing supply chain security?

In addition to helping secure the US against terrorist threats, examination of a supply chain for security vulnerabilities, as an exercise in itself, often reveals other opportunities for streamline and closing of gaps. 

Many vendors, both domestic and international, require their suppliers to participate in a supply chain security program as a condition of doing business.

Additionally, per CBP: “C-TPAT importers are six times less likely to undergo a security related cargo examination, and 4 times less likely to be subject to a trade related examination, than non-C-TPAT members”

How do I navigate the myriad global SCS program?

The simple answer is: you do not. You need only learn about US SCS programs because the US and other countries and customs unions have mutual recognition agreements (MRAs). This means, for example, that if you reach out to a supplier in the EU with a SCS questionnaire, and that supplier is already in the EU’s AEO program, you are finished with that supplier until you reach out to them again the next year.

The number of mutual recognition agreements continues to grow.  As of April, 2023, the US has signed 23 MRAs.

Are companies required to have a supply chain security program?

It depends. The US’ CTPAT program is voluntary, as is Canada’s PIP.  The EU’s Authorized Economic Operator, which combines supply chain security and customs compliance, is also voluntary, as is Mexico’s AEO. On the other hand, all imports into the US via ocean are required to make an Importer Security Filing. Failure to make a correct ISF in a timely manner may result in penalties.

Is SCS only dependent on importers?

No. There are SCS programs for importers, exporters, carriers, freight forwarders, customs brokers, and even port operators, among other participants. Cybersecurity for port operators, for example, is a realistic threat, as they need to protect their ports from being hacked and hence, being shut down. 

What is supply chain resilience, and how does it relate to security?

Resilience is the ability to recover after a shock to the system.  In supply chain management, one type of shock would be a port shut down.  A port can be shut down for a number of reasons.  Having a SCS program requires the trader to have a contingency plan in place to ensure that the supply chain is preserved when the unexpected happens. Security is a key component of resilience, as it ensures the supply chain remains protected from both physical and digital threats. 

On January 7, 2025, the US Trade Representative released six policy papers in a consolidated document, “Adapting Trade Policy for Supply Chain Resilience: Responding to Today’s Global Economic Challenges.  In this report, the USTR defined the four dimensions of resiliency in SCS: sustainability, security, diversity, and transparency.

What role does employee training play in supply chain security?

Training employees on security protocols, fraud detection, and compliance is critical. Informed employees can identify and mitigate risks before they escalate. In fact, training is one of the security criteria for CTPAT.

Securing Your Supply Chain: Protecting Trade, Enhancing Resilience

Supply chain security is no longer just a best practice – it’s a critical component of global trade. From safeguarding against terrorist threats to building resilience in the face of unexpected disruptions, a robust supply chain security program benefits businesses, governments, and consumers alike. Whether through voluntary initiatives like CTPAT or global mutual recognition agreements, securing supply chains enhances efficiency, reduces risks, and ensures the uninterrupted flow of goods.

At O’Meara & Associates, we understand the complexities of supply chain security and offer expert guidance tailored to your business needs. Whether you’re navigating CTPAT certification, ensuring compliance with global standards, or strengthening resilience, our team is here to help you secure your supply chain and protect your operations.

Ready to strengthen your supply chain security? Contact O’Meara & Associates today to learn how our training and consulting services can empower your business to meet the challenges of today’s global trade environment.