Taking care of other people’s stuff, as if it were your own
You have shipments coming in, and going out 24/7. Your facilities are spread over extremely wide areas. You need to store stuff. Safely. Securely.
What are the main concerns of the Logistics industry?
- Threats from terrorism and piracy, for example, are on the upswing. That’s already starting to have an impact on supply networks. Total direct costs of piracy in 2010 are estimated to be between US$ 7 billion and US$ 12 billion. And when you look at the indirect costs too, the figure is much higher. Piracy damages the tourism industry, causes losses in revenues for canal fees. This is why many shipping companies are now hiring special security.
- Virtual threats need to be taken just as seriously as physical ones. Indeed, cyber attacks designed to induce physical damage will be an increasing threat for the transportation and logistics industry.
Solutions for Logistics/Shipping
We believe that secure supply chains do provide a return on investment for transportation and logistics companies. Research has quantified the tangible business benefits of investing in supply chain security efforts.
Areas positively influenced by security efforts include:
- Supply chain visibility (50% increase in access to supply chain data, 30% increase in timeliness of shipping information)
- Improvements in inventory management (14% reduction in excess inventory, 12% increase in reported on-time delivery), and
- Long-term customer relationship (20% increase in new customers and 26% reduction in customer attrition)