C-TPAT makes a difference for Boeing
Boeing is a large potential target for terrorists because it is a symbol of America's economic strength and does so much contract work for the U.S. military.
That makes supply chain security critical to the airplane manufacturer, according to Ken Koningsmark, the company's senior manager for supply chain and aviation security compliance.
The largest U.S. exporter by value, Boeing had revenue of $68.3 billion in 2009. It is also one of the 20 largest U.S. importers, with 60,000 shipments worth $6 billion moving through hundreds of supply chains from 80 countries each year.
Eighty percent of its cargo moves by air, most of it on passenger aircraft, because it uses just-in-time manufacturing methods to keep inventory levels low.
Supplier disruptions or inspection delays at ports can wreak havoc with production lines. With the volume of import shipments expected to grow in the future ' up 53 percent in the past five years ' as the new 787 Dreamliner comes on line and production rates increase for other aircraft models, Boeing needs a program like the Customs-Trade Partnership Against Terrorism more than ever, Koningsmark said at a U.S. Chamber of Commerce event on supply chain competitiveness.
C-TPAT members are less likely to have shipments held for inspection because they have demonstrated they have strong security practices in place to prevent criminals or terrorists from compromising a container and smuggle something into the country.
Boeing also got two of its facilities certified under a special Transportation Security Administration program to self-screen cargo for passenger planes. The airplane maker is obligated to supply spare parts to customers within 24 hours of a breakdown, and needs to make sure outbound shipments bypass screening delays at airline facilities and make the first available flight, Koningsmark said.
Boeing is trying to figure out how to tighten security for the 20 percent of its imports that are non-procured. Customer returns, spare parts, tooling and other anomaly shipments are harder to secure because they are not part of regular supply chains, Koningsmark said.
C-TPAT makes a difference for Boeing
