10 Steps to Reducing Cargo Theft from Your Shipments

using inventory to reduce theftCargo theft is nothing new. Each year, businesses lose billions of dollars worth of products through “shrinkage”, hijackings and products “falling off the back of trucks”.

These costs ultimately are passed on to consumers in the form of higher prices, which means that cargo theft should be everybody’s concern.

Here are ten tips you can take to help reduce the amount of cargo theft your company experiences:

1. Do Background Checks on Drivers — Before trusting your valuable cargo to truck drivers, make sure you take the time to vet the people who will be responsible for transporting it to its final destination. This is especially necessary for temporary and part-time workers who have no history with your company.

2. Secure Your Facility — Most thefts take place from the docks of warehouses and are due to a large amount of products being stored in a single location. Install security cameras, burglar alarms and other anti-theft equipment and require managers to conduct frequent routine inspections to let would-be thieves know that somebody is watching the store.

3. Train Your Employees — Offer rewards and incentives to employees for helping you prevent cargo theft. Explain that everybody pays when your company is the target of thieves: Lower profits can result in higher prices, lower wages or a smaller scale workforce.

4. Educate Yourself on Theft Trends, Hot Spot Locations, and the Most Commonly Stolen Products — Cargo thefts can often follow patterns. Some are seasonal while others are based on hot products that are in high demand. Pay attention to trends and make the appropriate adjustment for those that affect your industry.

5. Increase Awareness around the Holidays — The holiday season is the busiest time of year for most businesses. It’s also when the majority of thefts occur because there usually are lots of new, short-term and part-time workers. Increase security and beef up anti-theft efforts in the weeks leading up to the holidays.

6. Use Only Bonded and Insured Carriers — If your products are stolen while a third party carrier is transporting them, they may be responsible for compensating you for your loss, depending on the terms of your freight agreement. Using only bonded and insured carriers can make the process of collecting your compensation faster and easier.

7. Be Unpredictable — If your drivers follow the same schedule and routes every day, it’s easy for would-be thieves and hijackers to plan a successful robbery. Encourage your drivers to vary their routes and use different timetables.

8. Avoid Leaving Loads Unattended — Most thieves prefer to work when no one is watching. Reduce the time your loads are left unattended, especially at ports, cargo yards and truck stops.

9. Use GPS to Track Your Cargo — Global positioning system technology is now cheap and widely available. Use GPS to know where your cargo is at all times. If your cargo is stolen, it can be used to assist police in recovering it.

10. Use a Multi-Layered Approach — To best protect your cargo, use a multi-layered approach that includes people, protocols and technology. Conduct an in-depth analysis of the security of your cargo from door to door and beef up those areas where it is most vulnerable.

Companies will always experience losses due to theft, but if you can show prospective thieves that you are taking every possible step to protect your cargo, they will most likely move on to someplace else.