Eighty-eight percent of cargo thefts that occurred in 2011 involved a full truckload or a container. Cargo thefts are a supply chain threat to Tier 1 and OEMs. On average, 63 cargo thefts occur each month. Preparing for a range of supply chain threat possibilities has become top priority for leading OEMs.
Interesting Facts About Cargo Theft
Eighty-five percent of all recorded thefts happened at unattended areas like truck stops and facility lots. In 2014, the average value of each cargo theft increased by 25 percent. Reports state that $18 million of cargo was stolen during the fourth quarter of 2014. One single cargo theft can result in unexpected delays for manufacturers. Manufacturers are tackling this issue in a number of ways.
How Manufacturers Prepare for Supply Chain Threats Like Cargo Theft
Some logistics providers have developed policies and training programs for drivers to reduce risks of theft. Carriers are adopting innovative tracking technologies to manage their freight. Location tracking and sensor monitoring devices installed in freight trucks alert carriers with real-time updates as cargo is transported. Other carriers have developed policies like limiting the amount of time a truck is left unattended, thus keeping them in constant motion. Policies like limiting deliveries on peak theft activity days like Saturdays are other policy examples.
Dixien, LLC Emergency Production Recovery Support
Diversifying the supply chain network also minimizes chances of supply chain threats like these. Adding a new supplier to a network of existing suppliers reduces chances of significant threats impacting production. In addition to expanding the supplier network, adding new suppliers capable of managing emergency production requirements is another step that can be taken. As an emergency production resource, we help OEMs keep their projects on schedule by helping them quickly recover from any supply chain disruption.