Security Technology Executive

SEP-OCT 2014

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Page 22 of 99

September/October 2014 • SECURITY TECHNOLOGY EXECUTIVE 23 certification ensures additional security policies and procedures are implemented and followed in an effort to ensure the overall integrity of the supply chain process. With the C-TPAT certifica- tion, organizations can speed up the flow of busi- ness and maximize the efficiencies of the supply chain process. Today's loss prevention profession- als must stay informed as regula- tor y requirements continue to evolve, so new policies are imple- mented in compliance with the lat- est developments. Besides compliance, price point is another factor heavily influenc- ing the logistics market. In what is often a procurement-driven ven- dor selection process, the choice of vendor may be strictly price- driven. But business development teams in the logistics industry are becoming more creative with non- price point factors to increase their likelihood of acquiring new busi- ness through value-added offer- ings. Trends emerging outside the scope of the "normal" business model include blanket insurance policies at no additional cost. What this means to the custom- er is if there is any loss or dam- age during the supply chain process, the vendor assumes 100 percent of the liability and cost of replacement for the products being moved. Under this model, loss prevention teams are reevaluat- ing their risk assessment models and implement- ing additional security measures. Historically, the largest concern facing many supply chain managers has been securing the products in their warehouses against threats ranging from deceptive pick-up, driver theft, facility robbery, and facility burglary. Today, these threats may be the simplest, most easily mitigat- ed concerns among the host of challenges faced within the entire supply chain. The contained warehouse environment allows for control of the majority of variables that could compromise secu- rity. Securing products in a facility can be accom- plished fairly easily through theft risk reduction strategies, including use of high-value security cages, trailer seals, and other physical barriers, coupled with access control screening procedures. In a recent interview, the vice president of global security for one of the world's largest logistics companies expressed confidence that his organization has a good handle on internal shrink or loss, based on strategic application of the various electronic and physical security mechanisms available for securing logistical hubs. The greatest challenge his organization faces on a daily basis, he says, is when the prod- uct leaves the property. Indeed, data from recent cargo theft studies confirms that product is most vulnerable when in transit. Those looking to disrupt the supply chain process realize there is less risk of detec- tion while the shipments are in transit than when they are in warehouses with physical bar- riers and electronic detection mechanisms in place. Although historically, a large percentage of loss in transit has been due to internal collu- sion, that percentage appears to be decreasing as more sophisticated external cargo theft rings become increasingly prevalent. Technology Trends in Asset Protection As a result of the high risk exposure of cargo in transit, loss prevention professionals are imple- menting solutions to remain a step ahead of criminals and effectively secure assets that are outside of fences or other physical barriers. Emerging trends include both covert and overt tracking of high-dollar shipments. Covert track- ing is accomplished through the installation of a GPS device somewhere hidden in the load. This device can be as simple as a cell phone or may be a more elaborate embedded tracking device. The "As cargo theft rings become increasingly organized and sophisticated, logistics firms are enlisting the help of loss prevention and risk professionals in the ongoing battle to keep the supply chain safe" (Photo Courtesy of US Security Associates)

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