Challenge

Safeguarding Supply Chains

Safeguarding supply chains is essential to both the EU’s economy and security. The economic impact relates to exports and import flows of the order of 6 billion Euro processed daily by EU Customs. Losses related to security in supply chains have been estimated to €8.2 billion by the European Parliament. These figures are limited to cargo and truck theft and therefore do not include other typical supply chain security incidents such as counterfeit, piracy, smuggling/contraband, sabotage etc. Likewise, besides the monetary impacts, there are other indirect consequences for companies including the loss of brand image, investigation costs, increased insurance premiums etc. These losses may threaten the survival of businesses in the marketplace and ultimately damage the competitiveness and economic development of European countries.

The vulnerability of supply chains is not merely expected to damage the trading sectors, but in the long run may also impact the security and quality of life of our societies. If customs administrations fail to collect enough tax revenues there will be less money that governments may reinvest in the country. Likewise, if borders’ controls fail to detect weapons of mass destruction entering a country the consequences could be enormous and devastating. Vulnerabilities from natural disasters have also been visible in recent years. As a consequence, supply chain security is high on the agenda of governments and business boards alike.
Despite the consensus on the importance of supply chain security, misunderstandings and lack of common approaches impact progress.

Approach

Bridging the gaps

CORE started by consolidating solutions developed in Reference Projects (Cassandra, CONTAIN, SUPPORT, SAFEPOST, EUROSKY, e-Freight) in each supply chain sector (port, container, air, post).

Results

Pilots & Benefits

  • End-to-end Supply Chain Security fostering standardisation, harmonisation and mutual recognition.
  • Controlled global visibility of security risks and other supply chain threats and their impact on supply chain flows around the world.
  • Real-time Lean Agile Resilient Green Optimised supply chain solutions offering a highly innovative approach to designing supply chains resilient (in real-time) to major disturbances caused by high impact events.
  • Furthermore the results of CORE will help the EU (and other countries) introduce changes to Customs policy which strike a balance between public and business interests, within reasonable regulatory constraint.
Related Work