Dan Burges - Cargo Theft, Loss Prevention, and Supply Chain Security
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- Book:Cargo Theft, Loss Prevention, and Supply Chain Security
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You need to determine your companys risk and mitigate their losses. Theres little information out there that tells you how to do this, on which methods of predicitve cargo theft modeling to use, and how to develop prevention solutions. Part history of cargo theft, part analysis and part how-to guide, this book is the one source you need to in order to understand every facet of cargo theft and take steps to prevent losses. It supplies a massive amount of cargo theft statistics and provides solutions and best practices to supply chain security. Providing you with cutting-edge techniques so you can prevent losses, this book will help you ensure that your cargo is secure at every stage along the supply chain.
. Outlines steps you can take to identify the weakest links in the supply chain and customize a security program to help you prevent thefts and recover losses
. Offers detailed explanations of downstream costs in a way that makes sense - including efficiency losses, customer dissatisfaction, product recalls and more - that dramatically inflate the impact of cargo theft incidents.
. Provides a complete methodology for use in creating your own customized supply chain security program as well as in-depth analysis of commonly encountered supply chain security problems.
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By
Dan Burges
Butterworth-Heinemann is an imprint of Elsevier
225 Wyman Street, Waltham, MA 02451, USA
The Boulevard, Langford Lane, Kidlington, Oxford, OX5 1GB, UK
2013 Elsevier Inc. All rights reserved.
No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopying, recording, or any information storage and retrieval system, without permission in writing from the Publisher. Details on how to seek permission, further information about the Publishers permissions policies and our arrangements with organizations such as the Copyright Clearance Center and the Copyright Licensing Agency, can be found at our website: www.elsevier.com/permissions
This book and the individual contributions contained in it are protected under copyright by the Publisher (other than as may be noted herein).
Notices
Knowledge and best practice in this field are constantly changing. As new research and experience broaden our understanding, changes in research methods, professional practices, or medical treatment may become necessary.
Practitioners and researchers must always rely on their own experience and knowledge in evaluating and using any information, methods, compounds, or experiments described herein. In using such information or methods they should be mindful of their own safety and the safety of others, including parties for whom they have a professional responsibility.
To the fullest extent of the law, neither the Publisher nor the authors, contributors, or editors, assume any liability for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions, or ideas contained in the material herein.
Library of Congress Cataloging-in-Publication Data
Burges, Dan.
Cargo theft, loss prevention, and supply chain security / by Dan Burges.
p. cm.
Includes index.
ISBN 978-0-12-416007-1
1. Cargo theft-Prevention. 2. Cargo theft. 3. Business logistics. I. Title.
HV6652.B87 2012
658.473dc23
2012007344
For information on all Butterworth-Heinemann publications visit our website at www.elsevierdirect.com
Printed in the United States of America
12 13 14 15 10 9 8 7 6 5 4 3 2 1
To my wife and children, whose love and affection are the light of my life.
Team Burges
In early May 2009, an organized crime group specializing in cargo theft was observed by police in Plainfield, Indiana. On an almost daily basis in the United States gangs are seen staking out logistics hubs across the country in such places as Plainfield, Memphis, Louisville, Atlanta, Miami, and Dallas-Fort Worth. This group was observed driving a late-model green sedan, conducting surveillance throughout several industrial park areas in and around the Indianapolis international airport.
The gang members were from Hialeah, Florida, the epicenter for cargo theft activity in the United States, and quite a distance from Plainfield.
A call to the Miami Tactical Operations Multi-Agency Cargo Anti-Theft Squad (TOMCATS), the nations most well-known anticargo theft task force, confirmed the groups identity and their status as persons of interest in a number of ongoing investigations. At the TOMCATS request, the Plainfield Police Department began surveillance of the group.
Eventually the gang left their hotel in Plainfield on Tuesday, May 5, and traveled east on Interstate 70 toward Ohio in a sedan and a bobtail (a tractortrailer without a trailer attached). As the suspects left the jurisdiction of Plainfield, the police surveillance ceased.
At the same time, another big rig departed Plainfield, Indiana, also heading east on Interstate 70 toward Ohio, but this one was pulling a trailer loaded with high-value prescription drugs from a major pharmaceutical company.
Less than 12 hours later, the truck driver of the pharmaceutical shipment stopped at a truck stop along the Pennsylvania Turnpike for fuel and a quick break from the long drive. While the driver was paying for fuel inside the station, his load of pharmaceuticals jolted into motion, this time with a South Florida resident behind the wheel, and in an instant, $37 million in prescription medication was gone.
While it is not every day that loads of this extreme value are stolen on our nations highways, cargo theft is, however, occurring multiple times every single day. In 2010 there was an average of two and a half tractortrailers loaded with cargo being stolen daily in the United States with an average loss of $471,000 per incident.
The purposes of this book are to detail one of the most underreported and misunderstood crimes of our time and to provide a comprehensive methodology for establishing supply chain security and loss prevention programs that will assist in reducing theft and keeping cargo secure.
This book is presented in two parts. Part 1 covers the problem of cargo theft in detail. While the history of cargo theft goes back to the first time goods were moved from one point to another, this book focuses on the cargo theft problem in the 21st century.
Part 1 provides an in-depth analysis of the methods by which cargo theft occurs, who is committing these crimes, why cargo theft is so lucrative, and why most of the public has never heard of it.
Often people ask me what do cargo criminals steal? to which I simply reply, walk into your house, turn around in a full circle, and everything you see a cargo criminal will steal. Cargo theft is a true market-driven crime. Loads of product are worth nothing to a theft gang unless they can sell them. Buyers of stolen goods have gangs target only items they know they can sell (or have already sold) on the black market. Consumer electronics, food, apparel, computers, building materials, furniture, appliances, liquor, perfume, metals, and pharmaceuticalsthe list goes on and onall of these products are at constant risk of being targeted by criminal elements throughout the year.
This part also discusses cargo theft through multiple modes of transportation, focusing on over the road trucking, but also includes cargo theft via air, ocean, rail, and pipeline. The first half of this book ends with a detailed look at the downstream costs incurred due to cargo theft, which can increase by multiple times over the initial loss value.
Part 2 proposes a methodology for mitigating the risk of cargo theft for both facility (manufacturing, warehousing, and distribution) and in-transit operations. Part 2 also covers the roles of personnel at every level in the supply chain and policies designed to not only secure cargo from origin to destination, but also assist in creating increased supply chain efficiencies beyond simply preventing thefts, as well as technologies available today and methods for employing these technologies into an overall strategy of risk mitigation and cargo recovery in the event of a theft.
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