1 Supply Chain Security Observation (SCSO) Objective To provide an observational perspective of the importer’s supply chain security procedures and highlight areas of potential concern. Bring the importer’s attention to potential risk areas in its supply chain

2 Supply Chain Security Observation  Done concurrently during an FA audit of non C-TPAT companies  Auditors gain an understanding of a company's Supply Chain Security procedures  Issue an SCSO audit report

3 Supply Chain Security Observation Process-Auditor’s Role  Entrance Conference  Supply Chain Security Questionnaire  Tour of Facilities/Plant  Interview Personal Obtain Documentation  Summarize results  Exit Conference Company may provide comments  Issue Report