Layers of Risk Define Layers of Security - PowerPoint Presentation

Slide1

Layers of Risk Define Layers of Security

Katie Freisen

Sr. Manager, Transportation Security

Johnson & Johnson Global Transportation

April 3, 2012Slide2

Agenda

Johnson & Johnson North American Security Evolution

Risk Assessment Model

Attributes

Actions

Key Focus Areas

DDI/DNET

TSA Slide3

GTO Security Evolution 2008 - 2012

YOU ARE HERE!Slide4

Goal of Risk Assessment – to protect the loads that are at risk, with the right layer of security

The Risk Assessment tool was created to model risk based on pre-determined risk criteria, in a scalable fashion:Product (Scheduled Narcotics, PSE, Ingestible, Infuseable, Implantable, Unsterilized FG)

Distance (ie: >500 miles = layover for single driver)Value of the loadFrequency (>1 per month?)

Known Security Risk at origin & destinationPrior incidents on specific laneAll TL lanes in North America are completedImplemented escorts for key Destruct Loads

Ocean, LTL, Air, Parcel assessments in progress

4Slide5

DNET

DNET = 12:01 AM of the RDD – Carrier Quoted Transit Time

Example

OrderHas an RDD of 3/30Has transit time of 6 hours

3/29

3/30

12:01 AM

DNET= 6 PM

Actual Appointment

12:01 AM

12:01 AM

3/27

3/28

Order Drops

“Depart No Earlier Than….Freight at Rest is Freight at Risk”

PROCEED DIRECTLY TO THE DC…...DROP LOADS 24/7 AT ALL J&J DISTRIBUTION CENTERSSlide6

DDI

Johnson & Johnson Cargo Handling Policy and Procedures (highlights)

All loads parked unattended overnight must be secured in a locked, fenced-in, and well lighted lot.

Under no circumstances is an open lot, public street or highway, or truck stop, acceptable for overnight, unattended parking.

Avoid parking in an area dimly lit and hidden from view.

Recommend that drivers

do not stop for the first 200 miles

upon leaving the terminal unless an emergency or has Hours of Service implications.

Drivers are responsible to

lock their tractors

when stopping and not have the motor running in their absence.

If in an emergency, a Johnson & Johnson load is to be dropped, it must be padlocked and the trailer

backed up against a building or another trailer

in such a manner that entry into the trailer is prohibited (restricted). KINGPIN or SUZY locks to be used on the “5

th

Wheel” trailer coupling if trailers are to be dropped.

At the beginning of each day and stop, the

seals and locks on all trailers will be checked for tampering and recorded

as to date and time of check with the driver’s initials next to each entry on the Bill of Lading.Slide7

Security Escorts

Implement “

Depart No Earlier Than”

Process at DCs

Closing gaps from carrier on-site assessments

All lanes, all stops vetted by WWS

Embedded GPS: Active Monitoring by

Logistics Security Provider

(lanes & Rest Stops vetted by

GS

)

Compliance Escorts

Fleet Cutting-edge

Security Equipment

Embedded GPS: Exception Monitoring by

Logistics

Security Provider

Embedded GPS: Theft recovery only by

Logistics Security Provider

Team Drivers

External GPS & monitoring provided by premium security carriers

(including advanced locks and braking systems)

Carrier, driver SOPs tied to contracts

Security Certified Carriers

HIGH

S

E

C

U

R

I

T

Y

LOW

Freight Security Pyramid

Highest Risk Lanes

High Risk Lanes

High Risk (components)

Applies to

All business

groupsSlide8

US Theft H

istory – Industry

* Source Freight Watch International

Consumer cargo theft rose from just over 2% in

2006 to 6% in 2010. 

At 5% for 2011, the total number of thefts for the

year was relatively flat, going from 54 thefts in

2010 to 52 thefts in 2011.

Pharmaceutical cargo theft has remained at a steady

% of total cargo theft between 4% and 6% year over year. 

2011 saw the first dip in the total number of cargo

theft incidents, declining from 49 in 2010 to 35 in 2011. 

Factors for drop:

Hardening of the supply chain

Emergence of faster response times

Education of drivers hauling cargoSlide9

Thank You!

Industry Sharing

&

Questions