Over the years, shipping fraud and theft have only grown more sophisticated. Shippers require advanced technology, visibility, and strategies in order to identify and prevent these problems.
To further shed light on these issues and their solutions, Overhaul’s EVP Dave Warrick recently joined Patrick Escolas on Banyan Technology’s Tire Tracks Podcast. Here, they discussed everything from changing theft patterns to Overhaul’s mark on supply chain security.
Why visibility is just the start to preventing shipping theft
Dave started the podcast by explaining his background in supply chain security. His interest in addressing customer pain points and desire to evolve supply chains ultimately led him to Overhaul.
“We have a saying at Overhaul,” he said, “that cargo at rest is cargo at risk, because [every] piece of inventory is actually money. From a supply chain perspective, you’ve got to understand that the high-value goods and low-value goods all have a price in the market… and the big crime syndicates know where the high-value products are. They [also] know who carries them, where they’re transacted, and where the weak points are in the supply chain.”
He then pointed out that other companies simply offer visibility to help prevent thefts. Overhaul, on the other hand, tracks, traces, and immediately helps shippers intervene against threats.
“We have connectivity into local law enforcement globally,” said Warrick. “They rely on Overhaul because our data’s that good. We know the driver, truck, where it came from, and where it’s going to. We understand when bad things happen and what happens next, and our ability to feed that information into the people who can actually stop and impact it is completely critical.”
The importance of law enforcement connections in combatting shipping fraud
Escolas and Warrick next discussed the role of law enforcement in cargo theft recovery. Warrick pointed out that, when you lose a trailer, it takes cargo thieves 5-15 minutes to offload it. Escolas added that there’s no arm of law enforcement specifically designated to help with these thefts, which can make it difficult for shippers to know what to do when one occurs.
“While theft is widespread, there’s still elements of simplicity,” said Warrick, “such as (certain) hot spots. We’re very tied in from a partnership perspective with local law enforcement in those areas… it’s [also an] ongoing practice by which we’re sharing and collaborating on information we’re seeing.”
Warrick then explained how Overhaul’s Intelligence as a Service allows shippers to check important information, such as whether their drivers are on a watchlist. Law enforcement can also access that information and intervene when needed.
Worsening shipping theft trends and the role of technology
Escolas then asked for suggestions for security measures to stay safe. In response, Warrick told him to “Follow the [security] protocols, know your supply chain, and do everything you can to keep it safe. But don’t just assume everything will be ok. Expect the worst.”
In response, Escolas pointed out that theft has seemed like more of a problem in recent years and asked whether that was really the case. Warrick agreed that the problem had worsened and that the pandemic acted as an accelerant, causing a 200-300% increase in thefts over the last 4-5 years. However, he stressed that technology can play an important role in combatting this increase.
“We’re moving quickly from the Internet of Things to the Internet of Everything,” he said. “Everything is going to have a signal and ping. [At Overhaul], we built a platform that’s really been designed around harnessing those signals and pulling in all of that real-time information. [From there], we can geofence distribution center yards or ports, so it’s not just a dot on the map; we understand what that dot represents and where it can go wrong.”
ROI and peace of mind
As discussion came to a close, Escolas asked Warrick to explain Overhaul’s value-add. Warrick responded with the example of consumer electronics shipments, which can easily lose 10s of millions of dollars a year. He stressed that this isn’t only a financial issue, but also potentially an opportunity cost. If a customer becomes disappointed, they might just go with a competitor.
“There’s no such thing as an acceptable loss,” said Warrick. “Our managed service focuses on recovery so when something bad happens, we can recover. Our recovery rates for stolen goods are over 90%…. that saves companies a lot of money but also lets supply chain officers sleep at night.”
Warrick then mentioned how much easier it is for stolen goods to be moved today as opposed to 20 years ago. The presence of online shopping has made cash conversion easier, which in turn means heightened risks for supply chains.
“This means the supply chain is seeing an even more heightened risk,” he said. “Devices are going to [need to] get smarter [and] have more information to help with prevention… The work that we’re doing at Overhaul might actually be the foundational blocks of getting to that next stage.”
Watch the webinar here and read more about how our partnerships are helping battle supply chain risks.