Collateral Benefits of Security and Supply Chain Improvements at International Gateways
Dr. Garland Chow
Freight security initiatives do not necessarily result in cost increases or reduced service. Security improvement can also reduce logistics and supply chain costs by improving supply chain visibility and enhancing transit reliability, resulting in collateral benefits to the supply chain. Previous studies have examined the impact of security ex ante, typically through surveys. We develop a total cost logistics model to simulate alternative logistics scenarios and security strategies to determine the influence of security initiatives on total logistics cost. A hypothetical application of the model to competing gateways is used to demonstrate the models usefulness in evaluating how security impacts the total cost of using a specific gateway and subsequently the competitive advantage of the using that gateway.
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