Evaluating the SEcurity of the Global Containerized Supply Chain

Abstract

The global supply chain is the network of suppliers, manufacturing centers, warehouses, distribution centers, and retail outlets that transforms raw materials into finished products and delivers them to consumers (Simchi-Levi, Kaminsky, and Simchi-Levi, 2002). Security of the system has traditionally focused on reducing shrinkage the loss of cargo shipments through theft and mis routing. However, heightened awareness of terrorism has redefined supply-chain security-the consequences of an attack on or via a critical global port could be a tremendous loss of life and a crippling of the U.S. economy-and has brought increased attention to the risks containerized shipping presents. The response has been proliferation of new security measures. For all these efforts, is the system of trade more or less secure? Will we know if these efforts are successful? How will success or failure be measured? This report presents a strategy for answering these questions using methods for managing risk of large-scale systems to analyze the structure of the container supply chain and its properties.

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