Presentation at Columbia University of ELISA security device

When security is deployed
for the logistic industry:
ELISA, a case history

Columbia Business School - Columbia University - New York, NY
November 19 2012

november 19 2012 | s.orsenigo@cleverthinkingllc.com | @StefanoOrsenigo

Meet ELISA:
Electronic Locking Interactive
Security Apparatus


General Market Concepts


Quality
In business, engineering and manufacturing,
quality has a pragmatic interpretation as the
non-inferiority or superiority of something; it is
also deﬁned as ﬁtness for purpose.
Managing quality is fundamental to any activity and
it implies: having a clear understanding of all
related aspects, measuring performance and taking
action to improve.


“Being sure that
a product arrives
safely and undamaged
to the ﬁnal customer
is obviously an aspect
of its quality”


Customer satisfaction
a measure of how products and services supplied by
a company meet or surpass customer expectation.
In a competitive marketplace - where businesses
compete for customers - customer satisfaction is
seen as a key differentiator and increasingly has
become a key element of business strategy.
It is therefore essential for businesses to effectively
manage customer satisfaction.


“Making sure that a
product arrives safely
and undamaged
to the ﬁnal customer
is obviously closely tied
to that customer’s
satisfaction!”


Cost optimization

Adjusting a/all process/es so as to optimize some
specified set of parameters without violating some
!
constraint is known as process optimization.
!
!
!

The most common benefits which derive
from a successful optimization are: minimizing cost,
maximizing throughput and/or efficiency.


“Making sure that all processes
used to assure that the product
arrives safely to the final customer
are the best possible,
obviously results into a more
fluid and cost-effective system,
one which gives the manufacturer
better quality and higher
customer satisfaction
(and one that, therefore, can
improve the company’s standing
in the market)”


Speciﬁc Keywords (or Concepts)


Security:
The degree of protection necessary to safeguard
something (or someone) against danger, damage,
loss, and crime. As a form of protection it includes
all structures and processes that provide or
improve security as a condition.
It also implies a condition in which one becomes
AWARE of the possibility that, in its development, a
system can evolve into some unwanted states.


Risk:
The Oxford English Dictionary deﬁnes risk as the:
(Exposure to) the possibility of loss, injury, or other
adverse or unwelcome circumstance; a chance or
situation involving such a possibility.
Risk is therefore the potential that a chosen ac-
tion or activity (including the choice of inaction)
will lead to a loss (an undesirable outcome).
The notion implies that a choice having an
inﬂuence on the outcome exists (or existed).


Analysis:
The process of breaking a complex topic or
substance into smaller parts, to gain a better
understanding of it.!

Analysis, in business, is a fundamental step to
identify needs so that solutions can be devised
and implemented. It involves the study of the
activity conducted and of all relative statistics,
environment, procedures, workforce, risks and
other pertinent aspects, with the objective of
producing an assessment of the situation.


Management:
All the activities put in place when conducting an
activity. Proper management includes procedures
for all possible stages of the activity: normal as
well as critical. In the area of security, proper
management implies devising:
•  preventive measures (actions put in place to
prevent the event of a possible risk)
•  protective measures (actions put in place to
protect people and goods in the case of an
hazard)


Risk!Analysis!
The cycle of security knowledge!&!awareness !

Risk!
Assessment!
balance!&!selec6on!

Risk!
Management!
ac6on!&!measure!


Both awareness and prior knowledge are to be
considered a method as well as an objective and as
such they require an holistic approach, considering
the interdisciplinary and the global issues related
to the subject of security.


Security deployed for logistics


the landscape
Globalization and the consequent aperture of new
markets requires that companies face new and
bigger challenges, to answer with quality and
eﬃciency to client’s needs, especially in terms of
ﬂexibility, cost optimization and attention to the
environment.


This has required, in the last decade, a continuous
push for innovation in industrial strategies, in the
organization of the operational processes and in
system management.
!
!
!
!

Obviously, these development involve the ﬁeld
of logistics - as well as the supply chain infrastruc-
tures and the systems used to manage them - which
has also evolved to cater to the progressive
demand for new solutions and new approaches.


Logistic processes, thus, have grown and have been
implemented with a series of technical and
organizational optimizations, well supported by a
technology that is increasingly becoming more
eﬃcient and cost-effective.


Nonetheless, to date, little attention (aside from
the insurance point of view) has been placed on the
aspects that relate to the industrial security of
logistic processes and to its components.
!
!
!
!

Failing to acknowledge the consequences of such
oversight can heavily impact - in terms of quality as
well as of economical and ﬁnancial implications - on
the business.


Such consequences are readily accessible in daily
news: property, information, equipment, supplies,
personal belongings or intangible data, all can be
stolen or damaged and the weakest link in the
supply chain is the process that takes a product
from the manufacturer to the consumer is the road
the product rides to reach the ﬁnal user.


It is not easy, in fact, to monitor effectively the
entire path the goods travel to go from point A to
!
point B, primarily for two reasons:
!
!
!

•  part of this process (like transportation or stock-
age) is often assigned to third-party providers

•  consequences of damaging acts by internal
employees are considered more important than
those perpetrated by other people, outside the
company.


Logistics operators are obviously the ones primarily
affected by the “holes” in these processes, as they
are responsible for stocking and moving the goods
!
from one step to the next in the supply chain.
!
!
!

There are no certain statistics, although some
researches quantify the security issue in a value
that goes from the 0,5% to the 1% of gross
income.


DHL has declared that, only in Europe, over 8 billion
Euros in value of high added-value goods are
stolen each year.
!
!
!
!

Not to mention the damage derived by the loss in
image by the company.


In such a complex and ever-changing environment
the primary efforts need be focused on developing
integrated products and services at an accessible
!
cost, characterized by innovative high technologies.
!
!
!

The challenge?
Delivering dynamic and sustainable answers to the
ever-changing needs of logistics operators in the
secure management of the supply chain.


ELISA: the project


In this landscape, therefore, the need to rethink
!
the various processes involved appeared evident.
!
!
!

We chose to approach the issues with a
methodological approach that implied the
following, consequential activities:


•  Risk Analisys - to identify vulnerabilities, the
probabilities of happening and the type of
dangers and liabilities;
•  Risk Assessment - with the aim of balancing
risks and actions and of selecting the best and
more opportune interventions;
•  Risk Management - to apply the appropriate
procedures and the best methodologies of
management;


the risks
The analysis of the activities implemented in
the entire logistic path evidenced how the security
risk is directly tied to the increased incidence of
certain factors:
•  poorly controlled (or controllable) ﬂuxes;
•  increasingly small dimensions of products/goods;
•  high added-value of products/goods;
•  recyclability of products.


the assessment

The evaluation of the elements of risk allowed for
the deﬁnition of a solution based upon an
innovative Integrated Security Model founded on
a systemic base rather than on a technological
premise.


The system is built on a IOT (Internet of Things)
platform that can offer at any time, through ITS
(Intelligent Transportation Systems) and ALS
(Advanced Logistic Services) solutions to assure the
automatic traceability and recoverability of goods
and products along the entire supply chain


This allows Logistic Operators to monitor without
interruptions and in real-time the path followed by
the goods, the resources and the premises/
facilities, regardless of their location.
!
!
!
!

Obviously, this increases signiﬁcantly the
operative eﬃciency and the level of protection
applied to the assets, allowing for more secure
supply chains


Furthermore, these solutions address and resolve
also, amongst others, some important issues
related to the safety of the products:
•  by preventing or deterring counterfeiting and
tampering; and
•  by assuring the conformity of transportation
and stocking with the most different legal
requirements


the solution: ELISA
An “intelligent transportation unit” made up by:
•  a container, ﬁt for logistic transportation;
•  an integrated “smart” closing device.
!
!
!
!

The system is completed by the capability of an
interactive connection with a Central Management
Platform.


ELISA: the Apparatus


the innovative container
ELISA’s peculiarly die-cut cardboard container
(subject also to a speciﬁc industrial patent) allows
for a perfect homogeneity and geometric
continuity which guarantees for excellent anti-
burglary protection, while maintaining an elevated
ergonomic quality and an equally high
manageability.


the ”smart” closure

ELISA’s particular container is associated to a
specially designed smart closing device.


Structurally, the closing device is composed of two
elements of closure made of biodegradable plastic,
one of which is immovably connected with
the internal closing ﬂap of the container. The other
element is actively operative on the external
closing ﬂap.
!
!
!
!

The internal locking element is predisposed to
accommodate different types (and levels) of
technology, according to the operative requirements


The innovative structural characteristic of ELISA’s
closing system is the perfect integration of
different technological devices with the internal
!
locking element.
!
!
!

This way, once closed, the container becomes
“self-protecting”.


technological add-ons
The closing system can be integrated with scalable
technological devices which can modularly add
functionalities such as:
•  simple identiﬁcation and space-time localization
through R.F.I.D. (Radio Frequency Identiﬁcation),
•  sophisticated functions of security, control and
monitoring through ITS (Intelligent Transportation
Systems), ALS (Advanced Logistic Services) and
GPS (Global Positioning System)


connectivity

ELISA can exchange data and information with
a remote Management & Control Platform
through diverse standards of communication,
such as N.F (Near Field Comunication), GSM/
.C.
GPRS or satellite.


adaptability

The innovative functional characteristic of ELISA’s
closing system is its dynamic adaptability to any
requirement/need that may be opportune in
different situations for each parcel.


Summary of functionalities


Thanks to its innovative concepts and inventions,
!
ELISA allows for:
!

-  monitoring the packing activity with respect to
the “picking list” of the order, memorizing the
qualitative and quantitative data that refers to
the nature and/or the quantity of the goods held
by the container


-  automate and optimize the diﬀerent
management and control processes on the entire
!
logistic path of the supply chain, including:
•  traceability of the goods;
•  correct loading sequence on the different
vectors;
•  stock management and warehouse
restocking;
•  automatic detection of attempted forceful
opening or tampering of container;


•  automatic detection of attempted theft or
concealment of the entire package;
•  control of the conformity of transportation/
stocking of goods to ensure the respect of the
required legal parameters and procedures
(through the monitoring of the environmental
characteristics detectable inside and outside
the container);
•  permanent connection with a Management &
Control Center, to exchange data and collect
information in real time.


ELISA is based on an industrial patent, conferred
with a high level of innovation and inventiveness
which, do date, is extended over Europe, USA and
Canada.


Conclusions


ELISA represents a good example of a new and
innovative approach to security in the logistics
context.
!
!
!
!

Through a rigorous scientiﬁc, technological and
managerial approach, this system can guarantee
operators in the ﬁeld of logistics the utmost
technical compatibility for every shipment and,
from an economical point of view the best adapt-
ability for most types of transportation needs.


Thank you for your attention
(and patience with the language)

Contacts:
s.orsenigo@cleverthinkingllc.com
@StefanoOrsenigo


Presentation at Columbia University of ELISA security device

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