The Severity of Cargo Theft in the Modern Supply Chain
The theft of cargo, even if only happening at relatively low levels, still represents a grave threat to supply chains. Depending on the company, a shipment may cost well into the millions of dollars. In the pharmaceutical industry, high-cost medications could cost into the billions. While high-value cargo draws the risk of theft, low-cost cargo—consumable goods—is the second most stolen form of freight. As reported by Devin Nye of Supply Chain Brain:
Recognizing the Indicators of Theft Enables Proactive Intervention
- An unexplained loss of freight.
- An increase in the frequency of freight loss.
- Higher freight costs when working with a given supplier or carrier without a rationale for sudden changes.
- Kickbacks from drivers or partners that seem unjustified.
- Trouble reconciling invoices against sold products.
Additional Measures to Prevent and Reduce Theft
- Automate reporting of freight delivered.
- File all claims for loss or damage immediately.
- Eliminate paper-based filing processes.
- Use analytics to determine likely causes of and opportunities for theft.
- Hold carriers accountable for theft that occurred while in carriers’ liability.
- Consider purchasing insurance for high-value, in-demand goods before shipping.
- Use big data and telematics to track all movements and know what really happened.