Today’s economy is driven by a global supply chain where goods move around the world 24/7. As supply chains grow more complex, so does the ability to secure goods. One of the biggest challenges affecting businesses today is cargo theft and the resulting potential disruption of the supply chain.
How large is this problem?
While difficult to quantify, the FBI estimates cargo theft amounts to $15 to $30 billion a year. However, this figure does not capture the indirect costs associated with theft such as lost sales, production down time, and missed deliveries. As well, certain industries such as alcohol, tobacco, and pharmaceuticals face the risk of their products being sold to minors or being counterfeited.
How does it happen?
A well-executed cargo theft is pre-planned and highly coordinated. Stolen goods are often moved quickly to a warehouse, off-loaded, repackaged, re-manifested, and placed on another vehicle; often before the theft is even discovered. This “illegitimate supply chain” is managed by organized crime operations that have the ability to move, transload, and distribute stolen goods within hours. Today’s virtual economy often works against legitimate businesses by facilitating the distribution of stolen goods through on-line marketers and auction sites.
Can GPS and Telematics prevent cargo theft?
Onboard telematics technology, such as GPS tracking, significantly improves vehicle recovery and may deter a less sophisticated criminal. However, these technologies are frequently defeated by criminals. Technology alone is not the answer. An effective security program must be well planned and combine technology with robust security practices.
These practices include:
- Be Alert. Be aware of possible surveillance being conducted on your facility’s operation.
- Respond. Immediately report all suspicious activity and/or theft, to management and law enforcement officials as criminals can move goods quickly.
- Manage Information. Only share information on cargo operations with those involved and watch for unusual changes in inventory.
- Know Your Supply Chain. Verify the identity of your supply chain partners, such as the carrier and driver scheduled to pick-up your cargo before a load is released, and monitor the movement of your goods.
- Execute Basic Safety Practices. Keep trucks locked and parked in an organized manner on a well-lit facility lot, ensure alarm systems are functioning properly and your facility is monitored by a central station.
- Screen and Train Employees. Rigorous pre-employment screening will help weed out those most likely to steal merchandise from a warehouse, loading dock, or truck. After screening, ensure drivers have good security training.
- Be involved. Several organizations can help you combat cargo theft. These include:
- International Cargo Security Council and your Local Cargo Security Council
- American Society for Industrial Security
- Customs-Trade Partnership Against Terrorism (C-TPAT)
In addition to preventing theft, making investments in security, from hard costs associated with technology and systems, to investments in training and resources, will ultimately improve supply chain efficiency, customer satisfaction, and bottom line results.
What measures do you have in place to prevent cargo theft?
This article was originally featured on Ryder.com.
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