Cargo Theft Prevention in Supply Chain Management – 3 Solutions
Supply chains are instrumental for business operations and enhancing global trade. It acts as a pipeline to source raw materials for manufacturing and delivering products to customers. But, with an increase in cargo theft, it’s under constant attack. Yes, from warehouse theft to missing cargo trailers, there are few security issues that affect the integrity of the supply chain every day. This affects the organization’s ability to manage logistics, delivery schedules, cost control, and more. So, it’s essential to
Cargo theft isn’t a new tactic but has been around for centuries. Today, cargo theft perpetrators are generally part of an international crime syndicate. The cargo theft problem is on the rise because it involves less risk and high reward. According to the recent cargo theft statistics, it’s a $15 to $30 billion-dollar problem each year in the United States alone. As many cargo crimes go unreported, the exact number of cargo theft is difficult to obtain. Moreover, the reports from the FBI adds that less than 20% of cargo is only recovered.
But, in recent days, the rate of cargo theft is declined by 22%, thanks to the wide use of GPS tracking devices. So, it’s mandatory to find some effective cargo theft prevention solutions to improve the supply chain.
What Exactly is Cargo Theft?
Cargo theft is defined as the illegal activity that involves the theft of cargo products that are used in the global supply chain. Most of the time, the products that are transported from the origin to the destination are exploited by the syndicates, which poses unique threats to manufacturers, suppliers, logistics providers, and more. Usually, cargo thefts occur when the cargo is at rest or left unattended, especially during weekends and holidays.
Cargo Theft Loses
Cargo theft is more common in the following niches:
- Electronics – 24%
- Food and Drinks – 19%
- Home and Garden – 15%
- Building and Industrial – 8%
- Auto & Parts – 7%
- Clothing and Shoes – 7%
- Personal Care – 5%
- Pharmaceuticals – 2%
- Tobacco – 2%
The average loss value of cargo theft in the food and beverages industry alone is $254 800 in the US and Canada. According to the records, the estimated loss of cargo theft is tens of billions of dollars worldwide. As mentioned earlier, it’s difficult to obtain the exact figure of the loss involved in cargo theft, as most of these crimes go unreported. One of the greatest reasons for unreported cargo theft is that most of the stolen goods are perishables, and when maintained in the wrong temperature-controlled environments, the carrier couldn’t sell the recovered products as it may cause serious health issues. Negative public perception or bad reputation is another possible reason for unreported cargo theft. The companies believe that customers may leave them for not having proper security standards.
Cargo Theft Prevention Solutions
Cargo theft is a global issue that affects both consumers and businesses. So, it’s imperative to take necessary actions against cargo theft. Here we’ve listed a few solutions for cargo theft prevention.
- Incorporate high-tech devices such as GPS trackers to get transparency into the supply chain.
- Screen employees properly before hiring to strengthen cargo security as most of the cargo thefts involve inside information.
- Performance periodic security audits to ensure security protocols are followed well.
- Assess cargo risks in the supply chain and identify the theft hotspots to avoid these crimes.
- Train your employees to make them aware of cargo theft, identify similar situations, and how to deal with them.
3 Useful Products for Cargo Theft Prevention
TK418 IOT Asset GPS Device with BLE
TK418 IOT Asset GPS device with BLE can be mounted into high-value assets to track the location and sends an informative report to the GPS tracking platform. One of the unique features of this device is cut off or recover oil circuits. Server or Manager Number (SMS)sends cut-fuel-circuit or recover-fuel-circuit commands whenever needed. When the cut-fuel-circuit command is sent to the device, the engine can’t start, and your vehicle will be locked. This ensures the safety of your vehicle. The recover-fuel-circuit command will recover fuel circuits of your vehicle whenever needed. It also comes with other unique features such as temperature alarm, SOS alarm, vibration alarm, collision or falling alarm, speed alarm, shift alarm, low battery alarm, geo-fence alarm, power disconnect alarm, and more.
GPT46 Rechargeable IOT GPS Device
GPT46 Rechargeable IOT GPS Device is designed to update the location of your assets such as cargo containers and more every 5 minutes while moving and once per day when stationary. You will also get instant movement alerts via text message email and push notification so you can take immediate action. It’d be very helpful in cargo theft prevention.
GPT46 Weatherproof Battery Powered Rechargeable GPS Tracker
GPT46 Weatherproof Battery Powered Rechargeable GPS Tracker can be mounted on cargo containers, trucks, electric motor, and IoT applications. It comes with a built-in temperature sensor that gathers and uploads temp data regularly. This tracker provides instant movement alerts, which improve the safety of your cargo.
Would you like to learn more about cargo security? Get in touch with us now for cargo theft prevention and improve supply chain visibility.