7 Ways Manufacturers Can Combat Rising Cargo Theft Trends
When cargo theft occurs, the entire supply chain suffers. Manufacturers must be aware of these recent trends occurring and act accordingly to protect their assets. With smart planning, businesses can adequately thwart thieves and safeguard their employees. Here are considerations for manufacturers to move in the right direction.
1. Understanding the Most Significant Risks
First, companies should understand the specific threats to which they are most vulnerable. The most immediate danger could be trucks in unsecured areas where thieves can quickly access them. In other instances, manufacturers may see organized crime targeting highly valued goods. Regardless, business owners need to acknowledge their weaknesses.
Researchers have investigated risk influential factors (RIFs) to determine the most damaging aspects. A 2022 study published in Reliability Engineering and System Safety developed a data-driven Bayesian network model to predict and diagnose cargo theft. The experts said product category, year, region, location type and modus operandi are the most significant RIFs. Therefore, manufacturers should be aware of these guidelines.
2. Leveraging Advanced Algorithms
Improving cargo security has become more challenging due to increased attack surfaces and opportunities for outside threats. In response, manufacturers must leverage advanced technologies like artificial intelligence (AI) and machine learning (ML) to protect their assets. Algorithms are excellent tools for business owners because they reduce the theft risk when transporting goods on the road.
A 2024 study published in Computers and Industrial Engineering used a physical internet-based analytic model to combat rising cargo theft. The researchers used real-world scenarios in their experiments to understand the benefits and drawbacks. Their model determined the risk of different product types based on their specific routes, allowing them to better understand the threshold where shipments become vulnerable to criminal organizations.
3. Using the Internet of Things (IoT)
IoT devices are critical for management operating systems (MOS) because they enhance software and hardware capabilities. With these gadgets, manufacturers can improve productivity and financial performance. IoT research is also critical for securing cargo through each step of transit. For instance, GPS technology provides real-time knowledge of each shipment.
Manufacturers should take advantage of IoT because it can be present with the device and around the facility. Smart cameras are an excellent example because business owners can remotely monitor the feeds and promptly take action. Advanced technology also lets manufacturers take extra steps to protect their cargo. Smart locks with biometric recognition are a vital safeguard against thieves.
4. Improving Cybersecurity Practices
Cargo theft increased by 46% in the first quarter of 2024 compared to the same time in 2023. CargoNet reported 925 incidents in the quarter, emphasizing the need for heightened security tactics. While physical barriers are necessary, manufacturers should also improve their cybersecurity practices. Internet crime is equally damaging to companies and could be more challenging to predict.
Ransomware attacks are among the most pivotal for manufacturers, considering their frequency. A 2022 IBM report found that 23% of these incidents affected manufacturing, making it the most targeted industry. Preventing ransomware attacks entails basic to advanced cybersecurity tactics, such as multifactor authentication, anti-malware software and software updates.
5. Selective Supplier Partnerships
Some manufacturers outsource specific tasks to reduce overhead and strengthen their bottom line. In addition to these partners, companies must watch other links in the supply chain. Businesses should monitor supplier relationships to ensure security — otherwise, they risk lost revenue and downtime while fixing errors.
Supplier relationships start with background checks and regular audits. Manufacturers must ensure these partners do their best to detect and address vulnerabilities. Business owners should find companies with pertinent industry certifications like C-TPAT if applicable. Monitoring should continue throughout the relationship with consistent communication and key performance indicators (KPIs).
6. Properly Training Employees
While suppliers can be security liabilities, it’s equally essential for manufacturers to monitor their employees. Workers may willingly or unknowingly contribute to cargo theft through their actions, so businesses should protect them from themselves. First, company leadership should train employees on best security practices, such as reporting procedures and proper loading.
Then, the company should focus on internal theft from its workers. Experts say over 75% of employees have stolen from their employer at least once. Therefore, robust internal measures should be in place to prevent theft. Mitigating employee stealing includes restricting access control and using biometric scanners. Business owners could also encourage workers to be vigilant of suspicious activity.
7. Controlling Supply Chain Aspects
Ultimately, it’s up to manufacturers and business owners to control as many supply chain aspects as possible. Internal audits are a valuable tool because they reveal gaps in shipments and where theft has potentially occurred. Once a company understands its insufficiency, leadership teams can act accordingly. Businesses should audit their inventory, security and other critical business features.
Supply chain professionals should also regain control in areas they may consider less secure, such as transit. Highways and oceans provide plenty of unknowns, so businesses must protect their cargo before, during and after the route. Besides GPS devices, forward-thinking companies wield electronic seals, telematics devices, light sensors and other tech.
Tackling Theft and Protecting Assets
The rise in cargo theft should alarm manufacturing professionals and business owners. Outside threats have become more sophisticated through physical and cybersecurity risks. While crimes have increased, manufacturers should proactively combat thieves. Leadership teams should scrutinize suppliers, employees and other aspects of the supply chain to ensure safety.
*This article is written by Jack Shaw. Jack is a seasoned automotive industry writer with over six years of experience. As the senior writer for Modded, he combines his passion for vehicles, manufacturing and technology with his expertise to deliver engaging content that resonates with enthusiasts worldwide.
