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Advances in Supply Chain Security

Cargo thefts are most prevalent at the point of origin, and during 'separation' events. Disruptive technologies are poised to reach the trucking industry.

In Latin American countries, cargo theft of pharmaceutical truck shipments often involves hijackers stopping the truck and using violence or threats to get the driver to abandon the valuable freight. In the U.S and in Canada, 98% of pharma shipments are stolen when left unattended.

“Freight at rest is freight at risk,” said Barry Conlon, CEO of Overhaul, a technology company providing real-time visibility into the global supply chain.  Conlon shared his insights with HDA (Healthcare Distribution Alliance) members at the 2018 Distribution Management Conference and Expo in Austin, TX, March 4-7, 2018.

“You want to concentrate on separation events,” said Conlon, when the driver leaves the cab, or the cab is disconnected from the trailer, or when the load leaves the trailer. “This is where your opportunity for theft occurs,” said Conlon. And most theft occurs close to point of origin—called the “red zone”. In fact, if your driver travels 200 miles without stopping, the possibility of theft drops 85%.

Cargo theft in the U.S. crosses state lines (multi-jurisdictional), meaning state law enforcement has to turn cases over to the FBI. Conlon remarked, “In this day and age, anti-terror efforts get all the budget. Property crimes are way down the list. It’s up to industry to respond.”

There has not been a lot of disruptive technology to hit trucking until now, but the Internet of Things is stimulating a lot of ideas and discussion.

Conlon showed results from a recent survey from Princeton Consultants on disruptive technology and its impact on the supply chain. Self-driving trucks were at the bottom of the list, with 28% of the respondents ranking medium or high impact. “I don’t think the driver will be gone anytime soon,” said Conlon. “It’s great to go barreling down I-35 with no driver, but once you enter a city with that tonnage of metal, it will have to be controlled by a driver.”

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