Unisys selected for TSA secure supply chain project - Transportation Security Administration's Operation Safe Commerce

EDP Weekly's IT Monitor, July 14, 2003

Unisys Corporation (NYSE:UIS) announced recently that it has been selected in connection with a Transportation Security Administration (TSA) grant to lead one of the Operation Safe Commerce projects with the Port Authority of New York and New Jersey to pilot improved safeguards for containerized shipping. The project, which will last approximately 12 months, is part of the first large-scale effort to improve the security of containerized shipments entering the United States from overseas. It will test the use of new processes and technologies on one of Sara Lee Corporation's high-volume trade routes.

Operation Safe Commerce is a federally funded TSA project that spans supply chain trade routes around the world. The project will pilot a combination of processes and technologies that will help secure corporations' global supply chains and cargo. Enhancing the safety and security of inbound supply chains has become a priority for corporate executives and government officials around the world. Federal, state and local governments are collaborating with the private sector on this security initiative to protect the United States and the cargo that moves in and out of its ports each day.

"This project comes just 10 months after Unisys was awarded the Information Technology Managed Services contract from the TSA," explained Greg Baroni, president of Unisys Global Public Sector. "We'll move full steam ahead to leverage our position as one of the agency's primary airport security partners with our commercial partners to address the safe commerce challenges, helping TSA with its mission to safely transport people and cargo."

According to the Department of Homeland Security, more than 21,000 cargo containers arrive in U.S. seaports each day and more than seven million each year. A typical international trade transaction involves 25 parties and 30 documents. There is clear need to improve security mechanisms to protect physical goods, documents and financial transactions.

The New York and New Jersey pilot program will involve Sara Lee Coffee & Tea Foodservice in conjunction with Atlantic (USA), Inc.

"The Unisys Safe Commerce solution will allow us to meet emerging government standards and regulations for security, while also providing business benefits such as lower inventory, reduced wait times, higher service levels and improved risk management," stated Gary Stopka, vice president, Sara Lee Coffee & Tea Foodservice. "We are pleased to be involved in this important initiative for both our company and our country."

According to David Jordan, president of Unisys Global Commercial Sector, the company's approach to the New York and New Jersey pilot focuses on extending the secure supply chain to global manufacturing sites through the establishment of secure processes, disciplined training, and the use of automated incursion detection technologies. The Unisys solution incorporates GreenLine Systems' leading-edge risk management software for assessing supply chain security and screening shipments.

"We are taking a leadership role in developing an integrated framework to solve Safe Commerce challenges that allows real-time evaluation of activities across the supply chain, protecting assets and preserving customer relationships," said Jordan. "While the prevailing wisdom suggests that it might take four to five years to build a comprehensive security system around U.S. seaports, risk demands that we more faster. The technology is available today and Unisys has the experience to move quickly and effectively on this project."

The Unisys Safe Commerce solution will be developed using Business Blueprinting, the company's recently announced comprehensive consulting, development and delivery methodology that builds on models that link business processes to the software and systems that support them.

The Transportation Security Administration (TSA), created in the aftermath of September 11, 2001, is a federal agency charged with providing security for the nation's transportation system. In March 2003, the TSA moved from the Department of Transportation to the newly created Department of Homeland Security.