Mark Solomon joined DC VELOCITY as senior editor in August 2008, and was promoted to his current position on January 1, 2015. He has spent more than 30 years in the transportation, logistics and supply chain management fields as a journalist and public relations professional. From 1989 to 1994, he worked in Washington as a reporter for the Journal of Commerce, covering the aviation and trucking industries, the Department of Transportation, Congress and the U.S. Supreme Court. Prior to that, he worked for Traffic World for seven years in a similar role. From 1994 to 2008, Mr. Solomon ran Media-Based Solutions, a public relations firm based in Atlanta. He graduated in 1978 with a B.A. in journalism from The American University in Washington, D.C.
When it comes to cargo theft, there is good and not-so-good news. According to security consultancy CargoNet, nationwide incidents of cargo theft last year declined 17 percent from 2016 levels. Yet there were still more than 700 reported incidents last year, involving $89 million of stolen goods. Many more incidents were believed to have gone unreported. The bulk of the thefts occurred over long holiday weekends when drivers take extended breaks and often leave their rigs and cargo unattended.
Businesses are getting smarter, but so are thieves. Shortly after Memorial Day, Scott Cornell, transportation business lead and crime and theft specialist for Travelers Insurance, spoke to Mark B. Solomon, executive editor-news for DC Velocity, about the most current trends in cargo theft and what businesses can do to protect themselves from an expensive loss down the road.
Q: Do you have a read on theft activity over the holiday weekend?
A: This year's weekend wasn't the worst we've seen in terms of number of thefts, though it was slightly above the average weekend. During holiday weekends, it's important for shippers, carriers, and brokers to make sure shipments are secured and to educate drivers on cargo theft tactics and prevention methods. It would be ideal to avoid leaving loads unattended. However, when that's not an option, we recommend a layered approach to protecting shipments. This includes good processes and procedures, staff and driver education, and physical and technological security enhancements.
Q: Five or six years ago, most thefts were yard heists and inside jobs conceived by ex- or current employees in the distribution center. Given the abundance of digital tools and thieves' mastery of them, is the traditional scenario still commonplace?
A: What we call "straight" theft is the most common type of theft, and it happens most often at unsecured locations. However, evolving technology has contributed to a rise in strategic theft, such as identity theft and fictitious pickups, by helping thieves identify their targets and find new ways to trick people. It's important not only to use physical security to protect loads, but also to have strong practices in place for protecting critical information and defending your company from cyber-based threats. Having this type of protection in place for virtual threats is just as critical as the physical protection needed around a yard or for a load in transit.
Q: Over the past five years, how have these tactics evolved? What has changed about the way they are executed?
A: Strategic theft methods have changed over the years. There was a time when we primarily saw two tactics—identity theft and fictitious pickups—but in recent years, we have seen more than a dozen different methods used. These types of cargo theft involve the use of fraud and deceptive information intended to trick shippers, brokers, and carriers into giving the load to the bad guys instead of the legitimate carrier. Organized cargo groups now use strategic methods such as double-brokering scams and "ghost trucks," and they will even trick legitimate trucking companies into picking up the loads for them. Additionally, thieves will combine two or three methods to further complicate things. Victims may not be able to tell how they've actually been hit.
It is important to thoroughly vet all carriers and brokers through the Federal Motor Carrier Safety Administration (FMCSA), Internet search engines, third-party vetting companies, and industry associations. Work closely with shippers to confirm driver identification at the point of pickup, and don't hesitate to contact your customers and business partners if there is any question or concern. Often, the additional scrutiny will deter thieves from pursuing the load in question.
Q: Freight brokers and third-party logistics service providers (3PLs) play key roles in procuring truck capacity for their shipper customers. Do you find these intermediaries are up to speed on anti-theft strategies and tactics?
A: It depends on whom you are talking about. Some larger brokers have dedicated teams with very detailed vetting procedures and security teams that can respond if they have a theft. Others may not have the same awareness or necessary procedures in place or dedicated resources needed to respond because they haven't yet experienced a theft.
Q: It's been said that freight posted on spot market loadboards becomes a target as soon as it is visible. Loadboards are getting more traffic today as spot market demand remains very strong. What are the security holes in loadboard freight and how can they be fixed?
A: Loadboards are as much a victim as the shippers and carriers in this situation. They are being taken advantage of while trying to provide a valuable resource and service, and there's only so much that can be done to stop it. Some boards restrict membership, but even that can be worked around, and when bad guys do get through, it's simple for them to profile a load to target.
In this situation, it's important for users to exercise caution when coordinating through these boards. There are some steps they can take to help keep a shipment safe: First, establish strong pickup security policies and procedures. For example, require the driver to have a specific and secure pickup number to gain access to the load. Second, ensure everyone involved in the haul is who they say they are. This also goes for the freight broker assigned to choose the carrier. Third, check if your insurer offers the right coverages for these perils and has the resources to prevent theft issues and recover goods if the worst happens.
Q: You said at a recent conference that thieves will "go to the well until the well goes dry." Does that mean they will leverage the same scenario until they are stopped? How do shippers and carriers combat this?
A: Thieves know what they're doing. If they know they can target a specific company with good cargo and insufficient preventive measures, they'll do so until someone stops them. But they're also smart enough to move on when law enforcement or the targeted company starts cracking down. We've seen several shifts over the years where law enforcement will be on the lookout for one type of theft, and in response, thieves will shift their tactics to evade detection. Similarly, we've seen thieves make sudden geographic shifts when they realize they've attracted too much attention in one area. For example, we've seen California-based crews move to Arizona, Utah, or Washington to evade detection. This creates a Whack-a-Mole effect.
Q: How much theft can be deterred just with common sense, such as fully vetting a carrier before providing pickup information? Or is that easier said than done?
A: Cargo theft doesn't take only one form, and neither should theft prevention. I can't stress enough the importance of taking a layered approach to protecting loads. Remember, processes and procedures are free, and they are often the best methods to prevent theft.
The U.S., U.K., and Australia will strengthen supply chain resiliency by sharing data and taking joint actions under the terms of a pact signed last week, the three nations said.
The agreement creates a “Supply Chain Resilience Cooperation Group” designed to build resilience in priority supply chains and to enhance the members’ mutual ability to identify and address risks, threats, and disruptions, according to the U.K.’s Department for Business and Trade.
One of the top priorities for the new group is developing an early warning pilot focused on the telecommunications supply chain, which is essential for the three countries’ global, digitized economies, they said. By identifying and monitoring disruption risks to the telecommunications supply chain, this pilot will enhance all three countries’ knowledge of relevant vulnerabilities, criticality, and residual risks. It will also develop procedures for sharing this information and responding cooperatively to disruptions.
According to the U.S. Department of Homeland Security (DHS), the group chose that sector because telecommunications infrastructure is vital to the distribution of public safety information, emergency services, and the day to day lives of many citizens. For example, undersea fiberoptic cables carry over 95% of transoceanic data traffic without which smartphones, financial networks, and communications systems would cease to function reliably.
“The resilience of our critical supply chains is a homeland security and economic security imperative,” Secretary of Homeland Security Alejandro N. Mayorkas said in a release. “Collaboration with international partners allows us to anticipate and mitigate disruptions before they occur. Our new U.S.-U.K.-Australia Supply Chain Resilience Cooperation Group will help ensure that our communities continue to have the essential goods and services they need, when they need them.”
A new survey finds a disconnect in organizations’ approach to maintenance, repair, and operations (MRO), as specialists call for greater focus than executives are providing, according to a report from Verusen, a provider of inventory optimization software.
Nearly three-quarters (71%) of the 250 procurement and operations leaders surveyed think MRO procurement/operations should be treated as a strategic initiative for continuous improvement and a potential innovation source. However, just over half (58%) of respondents note that MRO procurement/operations are treated as strategic organizational initiatives.
That result comes from “Future Strategies for MRO Inventory Optimization,” a survey produced by Atlanta-based Verusen along with WBR Insights and ProcureCon MRO.
Balancing MRO working capital and risk has become increasingly important as large asset-intensive industries such as oil and gas, mining, energy and utilities, resources, and heavy manufacturing seek solutions to optimize their MRO inventories, spend, and risk with deeper intelligence. Roughly half of organizations need to take a risk-based approach, as the survey found that 46% of organizations do not include asset criticality (spare parts deemed the most critical to continuous operations) in their materials planning process.
“Rather than merely seeing the MRO function as a necessary project or cost, businesses now see it as a mission-critical deliverable, and companies are more apt to explore new methods and technologies, including AI, to enhance this capability and drive innovation,” Scott Matthews, CEO of Verusen, said in a release. “This is because improving MRO, while addressing asset criticality, delivers tangible results by removing risk and expense from procurement initiatives.”
Survey respondents expressed specific challenges with product data inconsistencies and inaccuracies from different systems and sources. A lack of standardized data formats and incomplete information hampers efficient inventory management. The problem is further compounded by the complexity of integrating legacy systems with modern data management, leading to fragmented/siloed data. Centralizing inventory management and optimizing procurement without standardized product data is especially challenging.
In fact, only 39% of survey respondents report full data uniformity across all materials, and many respondents do not regularly review asset criticality, which adds to the challenges.
Artificial intelligence (AI) tools can help users build “smart and responsive supply chains” by increasing workforce productivity, expanding visibility, accelerating processes, and prioritizing the next best action to drive results, according to business software vendor Oracle.
To help reach that goal, the Texas company last week released software upgrades including user experience (UX) enhancements to its Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) suite.
“Organizations are under pressure to create efficient and resilient supply chains that can quickly adapt to economic conditions, control costs, and protect margins,” Chris Leone, executive vice president, Applications Development, Oracle, said in a release. “The latest enhancements to Oracle Cloud SCM help customers create a smarter, more responsive supply chain by enabling them to optimize planning and execution and improve the speed and accuracy of processes.”
According to Oracle, specific upgrades feature changes to its:
Production Supervisor Workbench, which helps organizations improve manufacturing performance by providing real-time insight into work orders and generative AI-powered shift reporting.
Maintenance Supervisor Workbench, which helps organizations increase productivity and reduce asset downtime by resolving maintenance issues faster.
Order Management Enhancements, which help organizations increase operational performance by enabling users to quickly create and find orders, take actions, and engage customers.
Product Lifecycle Management (PLM) Enhancements, which help organizations accelerate product development and go-to-market by enabling users to quickly find items and configure critical objects and navigation paths to meet business-critical priorities.
Nearly one-third of American consumers have increased their secondhand purchases in the past year, revealing a jump in “recommerce” according to a buyer survey from ShipStation, a provider of web-based shipping and order fulfillment solutions.
The number comes from a survey of 500 U.S. consumers showing that nearly one in four (23%) Americans lack confidence in making purchases over $200 in the next six months. Due to economic uncertainty, savvy shoppers are looking for ways to save money without sacrificing quality or style, the research found.
Younger shoppers are leading the charge in that trend, with 59% of Gen Z and 48% of Millennials buying pre-owned items weekly or monthly. That rate makes Gen Z nearly twice as likely to buy second hand compared to older generations.
The primary reason that shoppers say they have increased their recommerce habits is lower prices (74%), followed by the thrill of finding unique or rare items (38%) and getting higher quality for a lower price (28%). Only 14% of Americans cite environmental concerns as a primary reason they shop second-hand.
Despite the challenge of adjusting to the new pattern, recommerce represents a strategic opportunity for businesses to capture today’s budget-minded shoppers and foster long-term loyalty, Austin, Texas-based ShipStation said.
For example, retailers don’t have to sell used goods to capitalize on the secondhand boom. Instead, they can offer trade-in programs swapping discounts or store credit for shoppers’ old items. And they can improve product discoverability to help customers—particularly older generations—find what they’re looking for.
Other ways for retailers to connect with recommerce shoppers are to improve shipping practices. According to ShipStation:
70% of shoppers won’t return to a brand if shipping is too expensive.
51% of consumers are turned off by late deliveries
40% of shoppers won’t return to a retailer again if the packaging is bad.
The “CMA CGM Startup Awards”—created in collaboration with BFM Business and La Tribune—will identify the best innovations to accelerate its transformation, the French company said.
Specifically, the company will select the best startup among the applicants, with clear industry transformation objectives focused on environmental performance, competitiveness, and quality of life at work in each of the three areas:
Shipping: Enabling safer, more efficient, and sustainable navigation through innovative technological solutions.
Logistics: Reinventing the global supply chain with smart and sustainable logistics solutions.
Media: Transform content creation, and customer engagement with innovative media technologies and strategies.
Three winners will be selected during a final event organized on November 15 at the Orange Vélodrome Stadium in Marseille, during the 2nd Artificial Intelligence Marseille (AIM) forum organized by La Tribune and BFM Business. The selection will be made by a jury chaired by Rodolphe Saadé, Chairman and CEO of the Group, and including members of the executive committee representing the various sectors of CMA CGM.