Ensuring Better Outcomes in Pharmaceutical Warehouse Security 2012 Supply Chain Security Seminar, Wilmington DE

Transcription

1 Ensuring Better Outcomes in Pharmaceutical Warehouse Security 2012 Supply Chain Security Seminar, Wilmington DE Mike Elliot, Executive Vice President

2 Managed Costs Regulatory Compliance Cargo Theft Product Diversion (69%) (60%) Counterfeit Products (53%) Warehouse Theft (50%) Source: UPS Pain in the (Supply) Chain Survey

3 Why Warehouse Shipment Consolidation Combining product storage involved Break Bulk Operations Combining product for immediate shipment Stockpiling Inventory buffer Market Presence Increase regional responsiveness 3

4 Warehouse Security Trends in Theft Who Insider Involvement/Cooperation Organized Crime What OTC Items Schedule III, IV and V with High Market Demand Where Warehouse Cage NOT the Vault 4

5 Warehouse Security Trends in Theft When During Business Hours Under Cover of Dark How Smash & Grab Look Up Shipping & Receiving 5

6 The Importance of Warehouse Security DEA Regulations Are Not Just a Friendly Suggestion Profitability At Risk Transparency and Public Exposure Consumer Safety 6

7 DEA Regulations: 21 CFR Types of Safes/Vaults/Enclosures Key & Lock Controls/Procedures Alarm Systems Perimeter Fencing 7

8 DEA Regulations: 21 CFR Employee Supervision Public Access Guest/Visitor Procedures Security Force and Protocol Internal Monitoring Systems 8

9 DEA Regulations: 21 CFR Requires that the registrant notify the local Field Division Office, in writing, of ANY theft or significant loss of any controlled substance within ONE business day of discovery of the theft or loss. 9

10 Profitability At Risk Lost Product Equals Lost Profit Profit Incentive for the Perpetrator Market prices < 12 times what would be paid at the pharmacy counter Growing demand Per DEA, 13% increase in number of Americans abusing prescription drugs between 2008 and 2011 Game of Chicken? *NDTS 10

11 Demand for Transparency Government Investors Media Consumers 11

12 Consumer Safety Outdated and Ineffective Product Circulation Product Tampering Product Abuse Overdosing/Accidental Death 12

13 Deterrence is Key to Theft Prevention 13

14 Part I: Procedures for Minimizing the Internal Threat Hiring & Training Procedures Extensive employee screenings Employee training programs focused on diversion, ramifications and how to respond 14

15 Part I: Procedures for Minimizing the Internal Threat Access Controls Restricted and controlled access to grounds, building and areas Alarm codes extremely limited in distribution and intermittently adjusted No private automobiles adjacent to warehouse Stringent and automated inventory control and order processing systems Employee rotation to deter collaboration 15

16 Part I: Procedures for Minimizing the External Threat Standard Operating Procedures Loading Docks NO trailer trucks parked at loading docks during off-hours Video surveillance trained on exterior and interior walls of warehouse in loading dock area Roof Light stands need to shine down on roof inspect and maintain Install triggers along roof line inspect and maintain 16

17 Part I: Procedures for Minimizing the External Threat Standard Operating Procedures Alarm Response Remote access for Senior Management critical Notification Protocol need to go in and do a complete survey with authorities on ALL alarms Test system at LEAST once per month 17

18 Part II: Security Equipment Mandates Perimeter Protection & Surveillance These Four Walls: Vaults Et cetera Electronic Security 18

19 Perimeter Protection Perimeter Fencing/Anti-Ram Barriers Guard Gates Patrol/Traffic Control Video Surveillance/Motion Detection

20 Vault Systems: Why Modular? Create opportunities for fully customized configuration adaptable to new space or existing one Adhere to DEA requirements including 21 CFR Accommodate expansion and movement critical to an industry that is marked by rapid-fire product introductions and approvals Allow for integration of port-vent panels for HVAC and utilities

21 Modular Vault Overview Modular vault systems utilize high-strength pre-cast concrete or highdensity laminate lightweight panels - available with UL and GSA ratings, solutions are available to satisfy every regulatory and insurance requirement All panels formed within highly controlled environments to ensure consistent quality and conformity to label ratings UL rated panels are subject to thorough testing in accordance with the UL 608 Standard for Safety to qualify for the Listing Mark of Underwriters Laboratories Inc. and are available in every UL Burglary Resistant Classification All systems complemented by UL listed vault doors for optimal security 21

22 High Density Laminate Panels Lightweight Accommodate assembly locations with limited site access or challenging installs UL rated (Class M, 1, 2 or 3) or GSA approved DEA validated for Class I and II pharmaceuticals Do not require heavy equipment for installation

23 Raw Space BEFORE Vault Installation

24 DEA Approved Lightweight Vault AFTER Installation

25 Pre-Cast Concrete Panels UL rated (Class M, 1, 2 or 3) or GSA approved DEA validated for Class I and II pharmaceuticals Cost effective Ideal for installation with free-and-clear forklift access and slab on grade applications

26 Free and clear fork lift access is required to deliver and install pre-cast concrete modular vault panel systems.

27 HighBay Panel Systems Multi-story vault solution to accommodate the pallet racking and forklift requirements of the pharmaceutical industry Maximize use of limited footprint build up, not out Top out at 40 inside clear elevation Accommodate any rack configuration typically 6 levels high DEA validated for Class I and II pharmaceuticals UL rated (Class M, 1, 2 or 3) or GSA approved

28 HighBay Vaults Interior Installation Exterior Installation

29 HighBay Vaults Interior View Exterior View

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32 DEA Approved Security Cages 10 gauge wire woven mesh cages to accommodate Class III, IV and V pharmaceuticals

33 Security Cages Economical way to create secure areas anywhere Designed to meet project storage goals and available space Partitions use 20 standard size panels to build any height wall or clear span ceilings up to 35 Total cages or wall sections anchored into existing concrete Cage doors in standard sizes or built to custom specifications Self-closing, self-locking doors: hinged or sliding gates

34 Bullet Proof Equipment Bullet resistant glass, doors and armor products configured and integrated into the interior security system as a complement to vaults and cages UL/752 Level 1-7 rated products recommended - can be any shape and size mandated by a a given project Options include: Bullet resistant fiberglass armor Transaction & vision windows Protective wood, steel and glass doors Curved protective glass Protective barriers Package passers Cart pass-thrus

35 ManTraps Essential basic for all high-security facilities Easy to create with bullet-resistant sheetrock and highend door hardware Must be equipped with both video surveillance and access control mechanisms.

36 Electronic Security Components Video Surveillance To facilitate early detection of potential dangers and rapid intervention to minimize damage Access Control Systems To monitor and restrict access to your facilities and areas within Intrusion Alarm Systems To summon response and intervention: the very heart of after-hours security INTEGRATION IS ESSENTIAL All electronic security components must utilize a common platform to communicate/ interact, thereby creating a sum greater than its parts.

37 Video Surveillance What IP/Analog cameras, DVRs, NVRs, Encoders/Switches Why Theft Prevention Forensic Evidence Increased Employee Safety Improved Productivity Dispute Resolution How Analyze Infrastructure and Operational Constraints Utilize Equipment that Leverages Open Architecture Develop Hybrid Solution to Optimize Fit with your Organization Ensure Easy Interdepartmental Operability

38 Access Control What Keypads, Readers, System Support Why Threat Deterrence Reduced Liability Enhanced Control Audit Trail Opportunities to Automate Access How Start from the Outside in Analyze ALL Areas of the Facility Err on the Side of Conservatism

39 Intrusion Alarm Systems What Keypads, System Support, Monitoring Service Why Summon Expedient Response Early Intervention for Controlled Losses How Select Premier Level Equipment Choose a Trusted Monitoring Service Build Relationships with Community Responders Remote Access Testing & Procedure is Critical

40 The Mobile Pharmaceutical Building (MPB ) for Exterior Pharmaceutical Storage and Disaster Recovery

41 Key Features of the MPB 200 Square Feet of DEA approved storage Vestibule area between vault (Class 5 Door/Daygate) and exterior door 20 breaker electrical panel HVAC system with ductwork and connections for temperature control Alarm system with peripheral devices Interior and exterior lighting Back-up generator available for support in case of power loss

42 Part III: Integration for Optimal Security All components must work together Remote access affords better controls 42

43 Physical Security: Electronic Security: Vault Systems Video Surveillance Security Cages Bullet Proof Equipment ManTraps Comprehensive Security Plan Access Control Intrusion Alarm Systems Redundant Alarm Monitoring Mobile Access 43