Outline for the impact of theft on Supply Chain on ground

Outline for the impact of theft on Supply Chain on ground -...

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Supply chain leaders in America, like UPS CEO, Scott Davis, believe that supply chain is the life blood of modern economy. This life blood has been at risk because of an increasing growth in the cargo theft business. According to the latest reports by the FBI, cargo theft in the United States is estimated to be at a staggering $30 billion a year. However, these reports state that these numbers might be lower than the actual thefts because companies don’t like to report cargo theft crimes. They do this to avoid “bad publicity, higher insurance rates, damage to reputation, and embarrassment.”(Inside) According to LoJack’s, 2009 Supply Chain ISAC Report of Cargo Theft Activity, there were 611 reported incidents of cargo theft, nearly double the amount of reported incidents in 2008.(Supply) Cargo theft is a major problem because it can have serious repercussions for the company, its customers and the government. The company loses its merchandise, and is concerned about its goods leaking into the black market; “the customers end up having to pay up to 20% more to make up for the cargo theft; and the government misses out on the sales tax revenue.”(Inside) Further, cargo theft is usually a “gateway crime.” “In many instances, a cargo theft investigation will turn into a case involving organized crime, public corruption, health care fraud, insurance fraud, drug trafficking, money laundering, or possibly even terrorism”(Inside) In 2009, 34 states reported cargo thefts. According to the data from LoJack, there have been very few incidents of cargo theft in the Northeast and Northwest, however, this might be a result of the lack of availability of information from these parts of the country. Like 2009, in 2010, California and Texas have been at the unwanted position of the number one and two states with the highest amount of cargo thefts. These states have seen a reduction in the number of thefts in the 3 rd quarter of 2010. However, they are still the hottest spots for cargo thieves. “Throughout
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2010, California, Texas, Georgia, New Jersey, Pennsylvania, Tennessee and Illinois have reported the most cargo theft activity.”(Supply)
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Outline for the impact of theft on Supply Chain on ground -...

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