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Ú The long-lasting impact of Sept. 11, 2001
has made security a top priority for logistics
and supply chain professionals. Even if
security was not already a top priority for
most shippers, new regulations from the
U.S. Customs and Border Patrol in 2003
pushed security right up the "to-do" list by
offering potentially fewer inspections on
inbound shipments for shippers in
compliance with regulations.
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Ú But of most direct concern to shippers is
the Customs-Trade Partnership Against
Terrorism (C-TPAT), a joint venture
between Customs and business where
shippers assess their own security
readiness and submit to inspections for
C-TPAT certification. If certified, those
shippers' imports will be subjected to
fewer inspections and delays when
coming into the U.S.
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Ú In order to have a competitive
advantage over its rivals, Canon
decided to go for ³PROCESS
EXCELLENCE´ along with ³PRODUCT
EXCELLENCE´.
Ú A way to improve its efficiency was to
reduce the time taken for its raw
materials to reach to US from Asia
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Ú It was one of the first company to get
signed with C-TPAT
Ú As part of that preparation, Canon
brought in an independent third-party
auditor to review its security and make
recommendations for improving it. All
new hires are reviewed by that agency
as well.
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Ú Canon is also a member of the National
Cargo Security Council (NCSC), a group
of shippers, carriers and law
enforcement agencies that share best
practices around security.
Ú Canon participates in a flash alert
program through NCSC where
information on stolen trailers is shared
among members.
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Ú Ñrom a cost perspective, Canon
understands there are additional expenses
for updates, but believes they are a
worthwhile investment from both safety and
customer service perspectives. Internal
and external customers are provided better
information on when a shipment can be
expected and improved transit times under
C-TPAT through fewer Customs
inspections.
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Ú The research found that if a container is
delayed by inspection leaving Singapore
on a boat and it misses the boat, then it
has to wait several days to sail. If it is
inspected in a U.S. port on the other end
and gets delayed, it can be on another
truck much sooner, limiting the delay
time
 
Ú Technology is playing a big role in
securing the supply chain today, but
many organizations in today's cost-
conscious environment want technology
that is twofold. Shippers are looking for
tools that will provide increased visibility
for security and process improvement.
 
Ú Canon is focusing technology investments
around electronic container seals and information
networks to track the status of seals. Knowing if a
seal is broken when a container arrives is
valuable for security purposes, but knowing if it
has been tampered with in mid-transit is even
more valuable from a productivity standpoint
Ú The smart container includes an inter-connected
sensor system that automatically detects
intrusions, senses interior environmental changes
in temperature or humidity, detects hazardous
cargocommunicates its location and security
status
 
Ú Canon¶s consumer division in Europe has
improved the accuracy of supply chain
planning by 20% after it extended its
Oracle ERP systema
Ú Canon Europe¶s Consumer Imaging
Business (CCI) has deployed Oracle¶s
supply chain planning applications in an
effort to improve forecasting, product
allocation, order promising and supply
chain planning operations across its
headquarters, 17 countries and 13
warehouses.
 
Ú Prior to the Oracle implementation, CCI
relied on legacy systems and
spreadsheets for planning, which was a
time consuming process that was
difficult to manage.
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Ú [0 percent of the cameras returned by
consumers to Canon U.S.A. Inc. are in
³pristine condition´ and nearly all the
remaining units have been damaged by
customer abuse - Joseph Warren, vice
president and general manager of
customer support operations.
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Ú In 1994, Canon established its first
product returns center. At the time,
reverse logistics was ³beginning to gain
recognition and respect, but was still
considered disagreeable,´
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Ú ˜ost recently, Canon achieved ISO
9000 and 14001 quality certification at
the returns facility, where it carries out
refurbishing, remarketing, disposition
recycling, return exchanges, failure
analyses and call center activities.

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