Enhancing Logistics Security and Automation with StrataFlows
The global supply chain industry faces numerous challenges, including increasing cargo theft and fraud. Cargo Theft is a $15 billion to $35 billion industry according to the National Insurance Crime Bureau (NCIB). Fraudulent activities in the supply chain pose significant risks to businesses, resulting in financial losses and disruption to operations. This blog post will examine the growing threat of cargo theft and fraud, how businesses can protect themselves, and the role StrataFlows can play in helping logistics companies automate processes and enhance security.
Cargo Theft and Fraud
According to a report by the International freight transport insurer TT Club, criminal fraud is a primary and growing threat to the global supply chain, with carrier fraud being a dominant occurrence. Online facilities used for business transactions provide opportunities for a myriad of fraudulent activities, including payment fraud, procurement fraud, and carrier fraud. TT Club found that carrier fraud accounted for 84% of claims involving fraud or deception in 2022.
Cargo theft is also on the rise, with 2022 witnessing an increase in cargo theft incidents compared to 2021. CargoNet reported nearly 1,800 theft claims made by its members in 2022, a 15% increase from 2021. Thefts using fraudulent identities are becoming more common, with a rise in strategic theft where thieves use fraudulent or stolen carrier or driver identities to book and steal loads.
The Importance of Prevention and Vigilance
To combat cargo theft and fraud, businesses must be vigilant and proactive in implementing preventive measures. Some suggested strategies include:
- Employee awareness and training: Educate employees about potential fraud risks and encourage them to verify documentation and instructions directly with customers or trusted partners.
- Thorough vetting of carriers: Shippers and brokers should perform extensive background checks on carriers before assigning loads to minimize the risk of fraudulent activities.
- Secure communication channels: Establish secure communication channels between parties involved in the transportation of goods to prevent fraudulent interception of haulage instructions and other sensitive information.
- Use of locks and security devices: Implement physical security measures such as landing gear locks, kingpin locks, and air-cuff locks to deter cargo thieves from targeting your cargo.
- Technology and data-driven risk assessment: Utilize data and technology to assess risk by analyzing freight and lane information, cargo theft trends, and high-risk locations.
How StrataFlows Can Help
StrataFlows is a comprehensive software solution designed to help logistics companies automate processes and enhance security. By incorporating StrataFlows into your logistics operations, you can benefit from the following features:
- Workflow automation: StrataFlows automates and streamlines logistics processes, reducing the risk of human error and potential for fraud.
- Real-time data and analytics: Access real-time data and analytics to monitor cargo movement, identify high-risk areas, and proactively respond to potential threats.
- Integration with existing systems: StrataFlows easily integrates with existing logistics systems, providing a seamless and secure platform for managing your supply chain.
- Enhanced communication and collaboration: StrataFlows fosters secure communication and collaboration among all parties involved in the logistics process, reducing the risk of fraud and ensuring transparency through Dashboards and reporting.
- Compliance and risk management: StrataFlows helps logistics companies maintain compliance with industry regulations and manage risks associated with cargo theft and fraud. StrataFlows can add safety checklists and read documents through Machine Learning to ensure compliance has been met.
The increasing threat of cargo theft and fraud necessitates a proactive approach to logistics security. By implementing preventive measures, businesses can protect themselves from financial losses and disruption to their supply chain operations. StrataFlows offers a comprehensive solution for logistics companies looking to automate processes and enhance security, providing a powerful tool in the fight against cargo theft and fraud.
If you would like to learn more, Visit StrataFlows website or Schedule a Brief Web Call with one of our product specialists.