Cargo theft costs companies billions of dollars per year in losses. However, there are some simple steps that any company can make in order to reduce theft in the supply chain. Here are the eight top ways that companies can control losses due to cargo theft.
1. Properly Vet Your Employees
One of the largest sources of theft in a supply chain comes from employee theft. Therefore, it is important that a company properly vets its candidates before they are trusted with controlling any part of the supply chain. This includes everything from background checks to drug testing.
2. Educate Staff on the Latest Threats
While a company’s staff may be honest, the team could fall victim to theft if they are not properly educated on the various threats that can face the supply chain. A company should have a training and ongoing education program to help employees detect lapses in security and any threats of theft. This is a small investment that can lead to big returns.
3. Use GPS and RFID Technology
Using GPS and RFID technology to track transport vehicles and cargo is an excellent way to make sure that a company knows where its cargo is located at any time. There are a number of GPS and RFID solutions that can be implemented at all levels of the supply chain. These types of tracking equipment are critical to a safe supply chain.
4. Authorize Delivery Routes and Schedules
Supervisors should know exactly where cargo is headed and when it will get there. This will ensure that the company is able to keep track of cargo 24 hours a day. The information on the supply chain should be available to all levels of senior management involved in the supply chain.
5. Seek Out Advice from Law Enforcement
Law enforcement knows more about security than just about anyone. Therefore, a company should seek out advice from law enforcement about any possible lapses in its security. This will allow companies to make any needed adjustments to its supply chain security.
6. Vet Third-Party Vendors
Third-party vendors can be a vulnerability point in any supply chain. Therefore, a company should know exactly who they are dealing with when doing business with a third-party vendor. It is important that the company do an extensive background check on any third-party vendor.
7. Use Advanced Supply Chain Software
Using advanced supply chain software will allow companies to have a better understanding of where their cargo is going at all times. This will assist in the overall security of the supply chain. There are many companies that offer advanced and easy-to-understand supply chain software solutions.
8. Have a Set of Policy and Procedures
All employees involved in the supply chain should be giving a set of policies and procedures involved with the supply chain. This will help ensure that the supply chain is as secure as possible. Every six months, employees should be refreshed on policy and procedures to maintain a secure supply chain.
Keeping the Supply Chain Secure
A secure supply chain can save a company millions in lost inventory and other problems. From the right supply chain software to proper vetting, any company can have a secure supply chain. That can lead to lower costs and higher profits in the long run.