The notion of logistics to nations around the world and United States offers the knowledge of the mechanisms of effective and efficient security operations and planning. The programs generated towards logistics security are designed to promote protection to nations, which are encountering insecurity challenges, humanitarian crises and military factors (Czinkota, & rarr 2017). There is a close insight to logistics issues, introduction and backgrounds to logistics, the importance of logistics to business and the military operations. Also, the topic brings about the need to study logistics and its importance to the logisticians in help various military operations. It is always significant to know and understand that logistics is critical and useful to the organization or government institutions. Thus it should be practiced in the more ethical way and through following logistics standards. Consequently, military logistics is a concept the armed forces should entail in their military operations to enable them to be successful and target their enemies. Also, the security measure in international and military operations influences the planning and organizing distributions (Gordon, 2017). Without the security programs, initiatives, protective policies in different countries there would be, reduce in logistics efficiency and effectiveness.
Introductions
Most countries around the world are faced and exposed with serious insecurity factors that frequently disrupt the demand and supply for the economic systems. The logistics systems are the vulnerable spots for both firms and nations are mostly the targets for attacks. Logistics clearly bring refers to coordination of difficult operations which involves many facilities, people, and supplies. In business terms, the idea of logistics is defined as the management of the flow of thing from one point to another, which is at the point of consumption so that it meets and fits the requirements of the clients or customers. Furthermore, the term is a physical integration item generally material handling, packaging, warehousing, security and information flow. In a military sense, logistics brings about the issue of maintaining the army supplies line so that it may disrupt their enemies because the military force lacking transportation and resources seems defenseless. This paper, bring about an in-depth international and united states logistics security program in detailed. Commonly, nations around the world when it comes to logistics are always trying to manage on when and how to move the resources to the places they are required.
As defined by many scholars and professionals around the world, the term logistics management refers to the part of the supply chain that tries to implement and plan the forward and reverse movement of goods and services in more effective and efficient way. Furthermore, there is a relation of information concerning the point of origin and to those of consumption so that it meets the customer's needs. Most of the complex logistics may be examined, demonstrated and enhanced through steadfast simulation software. Moreover, those experts and professionals working in the field and are associated with logistics management are referred to as logisticians.
Background
Logistics is a practice, which was brought about in the late 19th century, which meant accountant. Most of the logistics military programs in the United States evolved after the World War II. From old age, military logistics has planned troops and supplies. Also, supply chain management has become the emerging factor in most industries, which need to compete in the world markets. Internationally, America is one of the primary exporter and Importer of different goods and services. From the 9/11, United States experienced tragedy, and it significantly influenced the international logistics operations. Thus, from that case, United States had a quick response through launching certain initiatives to keep safe the security of their borders regarding import and exports. After the attacks on 9/11, United States brought about some security programs like the Custom-Trade Partnership against Terrorism and Voluntary Logistics Security Initiative. Sort of programs protected America and the international countries against insecurity matters.
Some of the useful terminologies and their definitions
There are various terminologies used in logistics management and its activities. The definitions of those terms are as follows:
Inbound and outbound logistics:
These refer to the process in logistics which concentrates with the purchase and arrangement of the inbound undertaking of parts, material and complete inventory from dealers towards the assembly firms, manufacturers, merchandising stores, and the warehouse. On the other hand, outbound logistics talk about to the movement and storage of final products about information flow from the end production line towards the finish user.
Procurement logistics:
The term is commonly used in supply chain management, and it constitutes of activities like requirements planning, market research, suppliers management, and order controlling and make and buy decisions (Czinkota, 2017). In logistics, this term the target for procurement logistics seems to be contradictory because it maximizes efficiency through concentration of the core competencies, minimizing procurement costs whereas, maximizing the security linked to the supply chain process.
Emergency logistics:
Emergency logistics term is used when it comes to manufacturing, supply chain, logistics by industries, institutions, military services, and corporations to donate product and services in disaster prone areas or war-torn area. Furthermore, the humanitarian logistics focuses and involves the military, government and other agencies in emergency logistics services. Most of the emergencies international are support through the military humanitarian services and therefore, these services require logistics activities to prevail and succeed. Furthermore, military forces have to plan their operations in logistic ways so that every foods and service transported reach destinations promptly. For instances, the security tragedy fell in the United States on September 11 was needed a quick logistic military response so that they could rescue most survivors.
Military logistics:
Logistics in military refers to maintaining specific supply lines whereas, disrupting their enemies supplies. For most nations, such as the United States would define this as the most useful element in the military strategy because the armed forces without transportation and resources are useless and even defenseless. From the historical prospect, most of the leaders were considered as the logistics masterminds. Like Alexander the great, had the longest military campaign making him succeeding through his careful attention to provision his army (Engels, 1980). Likewise, Hannibal was credited for his taught in logistics because of his effectiveness in the Wellington supply system, however having numerous disadvantages.
Importance of logistics to businesses and military operations
The idea of business and military logistics is a planning process also brings about the implementations of effective and efficient storage of the raw materials, finished goods and services and inventories. Additionally, logisticians provided certain materials and information flow within the appropriate time when delivering (Hawthorne, 2017). In every business and military operation around the global, try to employee logistics activities because there are quite important. Here are some of the importance of logistics in both military and business terms.
Most of the logistics done in organizations assist organizations processes are efficiently and effectively. Military officers in the United States Army always track, store, manufacture and transport their inventory to ensure that they meet all departments of the organization. All the departments are required to understand and know whatsoever is expected to assist them in planning and ensuring that their objectives are on track. The military forces are supposed to ensure that they have enough resources in producing their finished products. Without such important, valuable quality goods, businesses or the military may lack or produce defective products (Gordon, 2017). Logistics at this case is important to military and businesses because the customers will be satisfied because of having enough quality products for the specified supply and demand purpose.
Logistics is important because it provides a competitive edge towards other organizations. Through logistics, customers are completely fulfilled in quite an efficient style because of the process and system used. Moreover, every business organization should be able to provide shipment in a more precise or accurate and faster way than the way their rival will.
The United States dominates both the imports and the export market in the world. The dominance of United States in international trade shows that the country's economy depends on international trade. Hence, the nation developed an effective procedure of universal logistics. The September 11 catastrophe led to tighter boundary securities to curb imports and export. Although the intervention of the United States into international logistic security programs provides safety trade, it has caused serious implications on trade efficiency. Some of the security measures require the logisticians to form a collaboration with their foreign manufacturers to ensure a secure universal chain of supply (Hintsa, 2010). Hence, the topic affect is important since it affects the logisticians directly.
September 11, 2001, event brought a security alert around the world to investigate on the possible holes for smuggling illegal goods and people. The results of the investigation confirmed availability of loopholes in the cooperation between the border security and the intelligent officials. The miscommunication of the two security agents resulted in an attack of the United States. The findings affected both the military and the business operation of the United States around the world. The results portrayed the challenge of lack of security check up on the flow of within the United States borders. Therefore, the United States had to formulate tighter security measures to protect their military and business logistics.
Following the findings and the recommendations of the terror attack, the US became the first nation in the world to form an authority to control the movements of goods and people around the world. The formed authority is known as C-TPAT (Customs-Trade Partnership against Terrorism). The logisticians were affected since the authority monitored their daily business activities closely with tough regulations. The main of the USA intensified participation in the international logistic from 2002 was meant to rally voluntary support among the logisticians to monitor the both the business and civilian's logistics to protect the United States against external threats.
The C-TPAT registers commercial corporations, shipping companies and the importers from the neighboring countries such as Mexico and Canada. As part of the C-TPAT requirements, all companies enlisted by the authority are provided by the safety requirements and conventions. The given regulations cover the procedures of the companies, employees, IT system, and other activities. The enlisted corporations are mandated to follow the stipulated procedures in all their operations. Moreover, they are expected to impose the regulations on their international business partners. The enlisted companies must hire an in-house security constable to uphold the rules and regulations of the C-TPAT. Another international player in business and security logistics, AIBIR, works closely with the C-TPAT to enhance the safety of international business. The AEO (Authorised Economic Operator) of the Israeli cooperates with both the AIBIR and the C-TPAT to enhance the protection of global logistic chain.
C-TPAT PRACTICES and Benefits
Since its implementation in 2002, more than 6,000 importers have joined the C-TPAT certification. The United States Customs are mandated to review the documentation of the C-TPAT members for making certification decisions. The members submit annual reports on their security progress for self-assessment. The main business advantage of logisticians joining the USA in their quest for promoting international logistic security is the benefits of reduced check-ups, faster inspections, and an allocated supervisor.
Every company under C-TPAT provides its employees with security training for applying in the global logistic. The C-TPAT is always ready to offer security teachings to its members and giving safety regulations. All logisticians under the authority agree on one common goal, the need of having security program against possible threats. Hence, all the companies are required to assign managers conversed with security matters as their team leaders. The focus of having team leadership security training favors the certification process of the companies.
The certification of companies in the C-TPAT does not require IT changes. The companies may have dreaded an upgrade of their IT system as one of the certification requirements. However, such security system would enhance accuracy and protection of vital information about shipments. Lack of requirement of the upgraded IT system among the members contributed to faster certification.
Overall, the United States Customs have been receiving success through C-TPAT certification. The success has brought up logisticians from all parts of the world in a joint commitment to foster the security of their supply chain. The companies embraced new security regulations in their global dealings. For instance, no company had a right of loading their shipments in the streets due to security concerns. The USA global logistic security program created a cooperative environment for sharing shipment, teachings, training, communication and visions of the international logistic. The certification process absolutely enhanced the level of security in the supply chain of the enlisted members.
Key Characteristics associated with the topic
There are various characteristics associated with the America's new regulations practices in the international logistic business and security. The key characteristics of the USA International Logistic Security Program include:
The formation of C-TPAT authority
The certification of companies enlisted by C-TPAT
The regulations of the C-TPAT
Challenges of USA logistic security in the free global trade
Benefits of joining the C-TPAT
The C-TPAT was formed in 2002 as a security response of the United States September 11 tragedy. The formed authority constitutes of voluntary individuals to monitor logistic shipment in the global world. The U.S.A security agencies believed that the tragedy was caused with lack close monitoring of goods and people cross the borders of the United States. The authority received a large number of membership as other countries such as Israel forming their logistic security in partnership with the United States.
The authority had various regulations imposed by the enlisted companies. The companies were required to train their employees on basic security measures and enforce the observant of the same laws to their foreign partners (Sheu et al. 2006). The rules and regulations were meant to control the shipments of products between the U.S.A, Canada, Mexico and the global market. The companies enlisted with authority received special benefits such reduced inspections, security training, accountant manager among other advantages. However, the new security practices faced critiques in the international trade community accusing it of interruption of free trade and its costly nature.
Examples to Explain some of the Key Points
The international trade community criticized the logistics security program of the United States citing a threat to free trade and cost. The economists estimated the total addition cost of the security requirements to $ 150 billion annually. The cost of enforcing the security forces was extended to the logisticians as they were required to co-operate with their foreign business partners to form a safe supply chain as per the security regulations. The requirement was disadvantageous to most United States importers since some of them have never had physical interaction with their business partners in a foreign land. The international business was torn on their role of promoting business efficiency against a new responsibility of logistic security program. Some managers still cannot explain their specific roles in the new security expectations.
Despite the critiques from the international community, the new security programs impacted logisticians with more benefits than harm. The international logistic security program promoted both military and business logistic security as all members of the global logistics had basic security ideas against terrorists. The security changed the international logistic from business minded to security enforcers (Sheu et al. 2006). The security programs have boosted both trade and military cooperation of the participants. The United States has been able to guide her borders against illegal goods and persons through a reinforced communication between the authority and the intelligence police. Enlisted companies benefit from the new security precautions through training and sharing of information.
Conclusion
The United States was the first country to form a logistic security program in 2002. The role of the logistic security program faced criticism among the international community due to its high cost and inconveniences to the logisticians. However, the global world recognized the importance of the logistic security and joined the C-TPAT. The enlisted members of the C-TPAT enjoy some benefits such reduced check-ups, security training, fast check-ups and assigned accountants. Since the enactment of the logistic security program, the U.S.A had secured its borders against foreign threats. Hence, the logistic security program has done more good than harm to global business cooperation.
References
Czinkota, M. & →, V. (2017). International Logistics, Part 5 : Logistics and Security - Professor Michael Czinkota. Professor Michael Czinkota. Retrieved 5 March 2017, from http://michaelczinkota.com/2016/05/international-logistics-part-4-logistics-and-security/
Engels, D. W. (1980). Alexander the Great and the logistics of the Macedonian army.
Gordon, D. (2017). Training Event Highlights Importance of Logistics for Military Operations - Two Sides of the Logistics Coin. Blogs.dcvelocity.com. Retrieved 5 March 2017, from http://blogs.dcvelocity.com/reverse_logistics/2015/05/training-event-highlights-importance-of-logistics-for-military-operations.html
Hawthorne, M. (2017). The Importance of Business Logistics. Smallbusiness.chron.com. Retrieved 5 March 2017, from http://smallbusiness.chron.com/importance-business-logistics-30906.html
Hintsa, J. (2010). A comprehensive framework for analysis and design of supply chain security standards. Journal of Transportation Security, 3(2), 105-125.
Sheu, C., Lee, L., & Niehoff, B. (2006). A voluntary logistics security program and international supply chain partnership. Supply chain management: An international journal, 11(4), 363-374.
