(resulting in financial theft), phishing, identity theft, email or virus attacks and more. With so much on the line, companies simply can’t afford to ignore these threats, as even a single stolen load can be debilitating. Fortunately, companies can take a number of steps to prevent fraud: Utilize trusted carrier databases and cross-check carrier identity with official sources like the Federal Motor Carrier Safety Administration (FMCSA) . Always verify email addresses and locations of carriers that contact you against official industry sources. Know the red flags, which can include suspicious documents, inconsistent branding, bad grammar, strange email addresses, last-minute changes or requests, unwillingness by a carrier to provide proof of insurance, and requests to change pickup or delivery dates and instructions. Educate and train staff on what to look for to ensure diligent follow-up when questions arise. Work exclusively with vetted carriers and brokers. Enhance security with technology to track loads, verify documents, etc. Verify payment details directly by phone, and use two- factor authentication for payment approvals. Beware if a carrier or broker attempts to change payment information mid-contract. With the right tools and partners in place, this growing threat doesn’t have to create an unnecessary burden for your supply chain.
When developing a response strategy, start with the areas most prone to incidents, such as coastal ports or regions that are most vulnerable to wildfires or flooding. Create alternate transportation routes and warehousing plans as a backup, and assign responsibilities so that key staff understand their roles in the event of an emergency. Diversifying suppliers and creating redundancies can also help to keep supply chains moving due to added flexibility. Technology and data can also play a key role in helping companies detect and respond early to potential threats through predictive analytics, allowing organizations to stay as informed as possible to initiate an efficient response to any incidents that arise. 7. Demand Volatility Certain times of the year, such as peak season, come with increased demand and can be planned for, while others, such as the unprecedented demand surge that occurred during the pandemic, can catch companies off guard and lead to lengthy stockouts for many products. Having a responsive inventory and warehousing strategy can help companies to avoid having too little or too much of a product on hand while providing flexibility to respond to sudden shifts. Consumer behavior, seasonal patterns and external disruptions can all create sudden changes in demand that can make or break supply chains. Real-time data can help companies create more responsive inventory strategies, giving them the ability to scale up or down based on what the data indicates and allowing them to restock items faster without holding excess stock. It can also help to ensure continuity in unpredictable conditions, prevent lost sales due to stockouts and make sure customers have access to the products they need when it matters most. 8. Freight Fraud Fraud has become a prominent threat to supply chains, resulting in substantial losses. Cargo theft alone costs the industry up to $35 billion more per year, making it one of the most costly risks to supply chains. Fraud can take many forms for supply chain companies, including cargo theft, double or unlawful brokering
$35 billion+ lost per year due to cargo theft
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