As geopolitical tensions continue to simmer, the role of connector countries in fostering stability and ensuring the smooth flow of goods and services across borders becomes increasingly crucial. 

The Double-Edged Sword of Geo-Economic Fragmentation: Diversification vs. Division

The rising tide of geo-economic fragmentation threatens to drown the hard-won gains of decades of globalization. While proponents tout diversification and regional strength, the reality is a divided world, locked in a zero-sum competition that threatens to stifle innovation and growth.

Yes, fragmentation offers some initial benefits. Diversifying trade partnerships can mitigate risk from regional instability. Regional blocs can foster specialization and efficiency. But these advantages are fleeting. Fragmentation tends to breeds competition, not collaboration. This can easily escalate into trade wars, protectionism, and currency manipulation—all hindering global economic growth.

Think beyond efficiency gains within blocs. A fragmented world means a world choked by conflicting regulations, making international trade a bureaucratic nightmare. More importantly, access to essential resources and innovative technologies becomes restricted, crippling the economic potential of those outside dominant alliances.

Globalization’s core tenet—free trade and open markets—has demonstrably lifted millions out of poverty around the globe over the last several decades. Fragmentation throws a wrench in this progress. The answer does not lie in retreating to isolated blocs but in finding a new equilibrium. The world needs strong regional partnerships that promote trade and investment. However, these partnerships must remain open to cooperation with others.

The ideal world is one where collaboration reigns supreme. 

The Challenge and Opportunity of a Shifting Manufacturing Landscape

Enter connector countries: the Switzerland of the trade world. These neutral players, with strong ties to major economies, offer a critical solution. 

Firstly, they allow businesses to maintain trade relationships across multiple blocs. Companies can continue working with established partners, albeit through slightly different routes. While these do extend supply chains, they preserves valuable relationships and minimizes overall disruptions to existing business operations. Imagine a company with a trusted supplier in China. If tensions escalate, a connector country can potentially help circumnavigate to minimize immediate interruption to operations.

Secondly, connector countries mitigate risk. By relying on multiple trade routes and these intermediaries, global economies tend to become less vulnerable to disruptions in any single region. Think of a major conflict impacting a key trade route; these countries offer alternative channels to keep goods flowing, continuing to support the overall resilience of the global trade system.

Finally, connector countries promote stability. As they become crucial facilitators of trade, they incentivize peaceful resolutions to escalating trade disputes. Knowing alternative routes exist, nations are often more willing to find diplomatic solutions to avoid complete trade breakdowns. Countries like India, Vietnam, Mexico, etc. with their strategic location and robust economy, exemplify this perfectly. They stand poised to play a vital role in fostering cooperation between major blocs—an increasingly valuable role in a fragmented world.

Supply chain disruptions will continue to remain a concern, but companies and economies will continue to adapt. The focus will need to shift from solely chasing low costs to a more balanced approach that considers affordability, ethical sourcing, and sustainability, all while dealing with the evolving geopolitical landscape. Technology, particularly supporting connected business processed with real-time information flow and timely decision making, is crucial in this evolution. It empowers businesses to navigate the complexities of new trade routes, optimize material flows across dispersed locations, and balance demand and supply efficiently.

As technology continues to evolve, these intermediary nations will play an increasingly critical role in ensuring the smooth flow of goods and fostering global economic cooperation. By leveraging their strategic positions and embracing innovative solutions, connector countries can transform potential disruptions into opportunities for growth and collaboration, driving forward the engines of global trade and economic development.

The article went on to say that with millions of Americans relying on mail-order prescriptions, the internal temperatures of delivery trucks, which can reach up to 150 degrees Fahrenheit, far exceed the recommended range for drug storage.

Pharmaceuticals that are temperature sensitive—such as inhalers, certain antibiotics, and other drugs—are particularly vulnerable to temperature fluctuations. Any wrinkle in the supply chain can jeopardize the efficacy of certain pharmaceutical products.

Temperature Variations Greatly Influence Product Safety and Viability

Despite claims from mail-order pharmacies about weather-resistant packaging, studies reveal that medications often spend significant time outside safe temperature ranges, potentially altering their effectiveness and endangering patients’ health.

Research published in the Journal of the American Pharmacists Association underscores the challenge of maintaining recommended temperature ranges during mail-order pharmaceutical deliveries:

When medications are mailed between residential addresses, keeping the packages within the recommended temperature range throughout transit may be more difficult than the general public may realize. Study results established that packages spent a majority of transit time outside of USP recommended temperatures regardless of the shipping method, carrier, or season.

Counterintuitively, both temperature extremes (above and below the recommended range) were observed when shipping in the summer and winter seasons. Pharmacists should counsel patients about potential temperature excursions that may occur when mailing medications. Further studies are warranted to evaluate the impact of different packaging types on temperature variations and excursions during transit.

Mail-order pharmaceuticals pose significant challenges to consumers, especially as more individuals rely on these services.

AI’s Role in Safeguarding Pharmaceutical Deliveries

Artificial intelligence stands to transform the online pharmacy industry by not only streamlining processes such as prescription management, inventory tracking, and customer communication, but also by collaborating with pharmaceutical suppliers to prevent spoilage.

Amazon Pharmacy, for example, is leveraging AI to enhance its same-day delivery service, initially launching in New York City and Los Angeles. By incorporating generative artificial intelligence and machine learning, this service is designed to accelerate prescription processing, potentially enabling treatment delivery within a few hours. AI can not only help control problems caused from temperature anomalies, but it may optimize operations and improve patient care.

As an AI consultancy, we have first-hand experience in optimizing cold chain logistics for pharmaceutical shipments. For example, a specialized logistics provider for temperature-sensitive pharmaceutical products faced a unique challenge in maintaining the integrity of its cold chain during transportation.

With stringent temperature requirements and regulatory compliance standards, they struggled to ensure consistent temperature control across their supply chain, leading to occasional product spoilage and compliance issues.

Leveraging advanced temperature monitoring sensors and predictive analytics, a real-time temperature control system was designed to continuously monitor temperature variations during transit. The system utilized machine learning algorithms to analyze historical temperature data, predict potential deviations, and trigger proactive interventions to maintain optimal storage conditions.

Real-World Impact

The company achieved a 99% temperature compliance rate, eliminated product spoilage, and exceeded regulatory compliance standards. AI transformed their operations, ensuring the safe and timely delivery of temperature-sensitive pharmaceuticals.

The problem of perishable pharmaceuticals, particularly those delivered via mail order, is a significant concern that can be effectively addressed through the application of AI and machine learning. As the reliance on mail-order prescriptions continues to grow, it is imperative to implement innovative solutions that safeguard the integrity of these medications and protect patient health. AI offers a powerful tool in this endeavor, enabling the online pharmacy industry to deliver medications safely and efficiently, even in the face of challenging environmental conditions.

“Inbound logistics makes sense,” they say as they sip. “But it’s a lot more complicated than just letting my vendors and logistics partners control my inbound flow.  I just don’t think I can handle that.”

It tastes great, but all those inbound data points make it more filling. Would a chaser make that brew more palatable? Got one for you: AI. Inbound logistics and AI is a combination that really shines in times like these.

Amplifying your inbound programs using artificial intelligence will give you more choices and more alternatives, and flatten the impact of disruptive events, such as the recent ones that have likely affected you: hurricane devastation, strikes, low tide in the Panama Canal, blockage in the Suez Canal, collapsing bridges, rocket and drone attacks on maritime commerce, BRICS’ attack on the greenback as the world’s trade reserve currency, wars, trade wars, rail disasters, over-regulation. Enough!

Maintain margins during supply chain disruptions? Sure. But it’s also important to lock in customers with your brand when things go sideways for them. Stew Leonard Jr., president of Stew Leonard’s, said that the regional supermarket was going to have to do “some supply chain gymnastics” to ensure customers have plenty of the products they know and love.

Blending AI with your efforts to match your supply more closely to demand makes all those extra data points more manageable. Whatever management tools you use for data analytics—from basic spreadsheets to a best-in-class TMS, and including tie-ins with your logistics intermediaries, brokers, forwarders, and 3PLs—you can fire up decision-making on the fly by using AI to make sense of all those increased data points.

Many leading logistics partners are investing in AI right now to serve you better, faster and more efficiently. Tie their solutions to controlling your inbound flow.

Inbound logistics and AI drive enterprise efficiency in normal times, if we ever have normal times again. But that combination can mean the difference between surviving the next catastrophe and losing customers, market share, and maybe much more. It will earn you a gold medal in supply chain gymnastics.

This change is being driven by the continuing rise of the global ecommerce sector and an increasingly sophisticated and demanding consumer base. 

New Normal Emerges

The shift is a legacy of the Covid-19 pandemic, when traditional, physical shopping was abruptly halted by lockdowns. Consumers were driven online, putting the supply chain under more stress than ever before. And when the pandemic ended, a new normal emerged—one in which consumers with more expendable income continued and increased their web-based purchases.

The ecommerce boom in Southeast Asia is driving significant changes in the logistics sector. As the region continues to develop its infrastructure and adopt new technologies, the logistics industry will play a crucial role in supporting the growth of ecommerce. Companies that can navigate the region’s unique challenges and leverage technological advancements are likely to succeed in this dynamic market.

Overcoming Hurdles

As a major manufacturing hub, Southeast Asian region faces a number of logistical hurdles as it vies to keep up with demand. The region needs five times the space for logistics than is currently available to tackle the current supply-demand imbalance, according to a report by Knight Frank.

That is compounded by a shortage of available infrastructure, forcing logistics players and third-party logistics (3PL) providers to seek innovative solutions to use the limited resources they have more efficiently.

As a result, the sector is now in a state of flux with players coming and going.

Over the past few years, a number of bigger companies have set up shop while several smaller operations have expanded their horizons and shored up their operations as they look to weather the storms that lie ahead. That means they need the right support for their supply chains—be it freight forwarding, warehousing, project logistics, and more—in a fiercely competitive market.

Some companies bring their own logistics setups and supply chains with them for new large-scale projects. However, what might have worked for them elsewhere—like Europe—will not necessarily be the right model for Southeast Asia. The region’s logistics sector is notorious for its complex laws and regulations, not to mention compliance issues, which can present challenges to getting local projects off the ground. 

Infrastructure Investments

The region is ramping up its facilities and capabilities, including expansions to ports, roads, and warehouses. 

Construction is underway in Malaysia for the Pengerang Energy Complex, Kuala Linggi International Port expansion, and the Batu Kawan Industrial Park 3. Malaysia’s biggest port operator, Westports Holdings Bhd., is also considering external strategic investors to help fund a 39.6-billion-ringgit ($8.3-billion) expansion that will see capacity nearly double in coming decades.

Singapore is building what will be the world’s largest automated terminal when its Tuas Port is completed in 2040 at an expected cost of S$20 billion ($15 billion). 

PSA Singapore (PSA), which operates a container transhipment hub in Singapore, unveiled the PSA Supply Chain Hub @ Tuas (PSCH), a central part of its strategic expansion in Tuas Port, at a groundbreaking ceremony in October 2024. (Artist impression of the PSCH, scheduled to be completed by 2027, shown above)

With traffic volumes forecast to exceed the Straits’ capacity by 2030, Thailand has proposed bypassing the shipping lane entirely, with a plan to build a $28-billion 62-mile ‘land bridge’ that will link two seaports and cut travel time by four days. The Thai government has also announced plans to invest a further US$19 billion in 150 infrastructure projects, amongst which is the Thai-Chinese mega high-speed railway which will connect Nakhon Ratchasima to Nong Khai, as part of the Belt and Road Initiative (BRI). 

Meanwhile, since the start of its “Build-Better-More” program, the Philippines inaugurated the Samar Pacific Coastal Road project in July 2023, and more projects are due for completion including the Malolos Clark Railway in 2024 and Bulacan International Airport to decongest Ninoy Aquino International Airport in 2027.

One Key Piece of the Puzzle

There is one vital ingredient to the recipe for success that should not be forgotten: experience.

The complexity of local laws means that a project in Kuala Lumpur will have very different requirements from those in East Malaysia, where restrictive immigration laws present challenges for the free flow of foreign manpower and expertise. This, in parallel with East Malaysia’s poor infrastructure, makes new players reluctant to venture into the area.

Having a well-established local logistics partner with a sound understanding of local laws and regulations can make the difference between success and failure in keeping projects and the cargo they need moving seamlessly. 

Customer experience is also key. Consumers demand not only quick delivery but also flexible options for receiving and returning products.

Finally, the trend toward consolidating multiple vendor relationships into a single, comprehensive logistics partner streamlines communication, billing and contracting which often leads to lower costs. By going deeper into the merchant’s business, logistics providers can be more strategic, helping to creatively solve problems with merchants.

Logistics companies are responding to increased demand by offering new pick-up and drop-off options, streamlining the experience with QR codes and package-free returns, and consolidating multiple shipments into bulk deliveries.

The evolving relationship between ecommerce companies and logistics providers is driven by the need to reduce costs, enhance customer satisfaction, and streamline operations. As these partnerships develop, we can expect further innovations in the logistics sector that will ultimately benefit logistics companies, merchants, and consumers.

Ripe for Consolidation

Traditionally, warehouses and 3PLs have focused on outbound orders rather than managing returns—but with the rate of ecommerce product returns approaching 18%, reverse logistics is increasingly becoming a key concern for both merchants and their 3PL partners.

Without a strategic plan for managing reverse logistics, the majority of returns end up getting discarded. This approach isn’t just terrible for the environment, it also forces merchants to foot reverse logistics costs for products they won’t resell.

In response, warehouses and 3PLs are offering new services to support and streamline reverse logistics. For example, many warehouses and 3PLs now invest in software to house procedures for processing, grading, and getting items ready for inventory again, so that they can easily determine which products are viable for resale.

These providers are also expanding services into refurbishment and re-commerce, which helps merchants build a sustainable option for reselling gently used or open-box products on a secondary branded platform. This model helps to promote a second life for used products and to generate a secondary source of revenue for the merchant.

To increase capabilities quickly, many logistics providers are turning to partnerships and acquisitions that can help them tap into new market opportunities.

For instance, last year, UPS acquired Happy Returns, a reverse logistics company with a network of drop-off locations where customers can deliver box-free returns for a frictionless returns experience. By pairing Happy Returns’ existing drop-off centers with its network of 5,200 UPS Stores, UPS was able to expand its base of drop-off centers to more than 12,000 U.S. locations.

In the future, partners that offer package-free drop-offs may get into the inspection, refurbishment and re-packaging space so that items can go directly to a warehouse for fulfillment, or possibly even drop-ship directly to a new buyer from the drop-off center.

By using existing resources, and adding new partnerships and acquisitions, they can consolidate and streamline the reverse logistics process for merchants.

A critical step to prevent harm from IP theft is to identify infringing goods or services. With its ability to process vast amounts of data and recognize patterns, AI can proactively identify potential IP infringements in ways that human monitoring cannot match.

Some examples of proactive monitoring can include:

• Using AI algorithms to analyze online data to identify possible infringements. This can include counterfeit goods being sold on e-commerce platforms, or pirated content on digital channels.
• Using Natural Language Processing to scan and interpret text across various online platforms, flagging instances where copyrighted or trademarked content is used without authorization.

This NLP text scanning can also be used to find instances where trade secret materials are being sent—for example, to an employee’s own address or to a competitor’s email to permit copying.

• Using AI to recognize images and videos, making it easier to spot unauthorized use of visual content.

Defeating Deep Fakes

A rise of deep fake technology to mimic images and voices results in understandable human error when sending sensitive information to competitors or thieves. AI tools can detect whether messages requesting sensitive information come from a generative AI source instead of a human counterpart.

In addition to these models, I advocate for an older but still effective technology involving smart contracts, blockchain or other distributed networks and, increasingly, NFTs. The proliferation of advanced manufacturing relies on transmitting data to manufacturing facilities around the globe. Smart contracts are if/then software programs that are secured to a blockchain to verify that they have not been modified or that the data wrapped in the smart contract has not been copied. Where the IP is encoded into digital manufacturing specifications, the IP cannot be taken off the blockchain without the theft being evident to the IP owner.

NFTs’ more interesting capability is moving data in a way that is highly traceable. Newer versions of NFTs, called vNFTs or virtual NFTs, can be used to verify identity of trading partners in transactions, and wrap highly sensitive data in an immutable digital package for secure transmission and use.

Finally, identifying IP theft is not enough to function as a robust deterrent and remediation program. Enforcement is a necessary component of any IP protection program and in this aspect both AI and blockchain-tethered smart contracts serve a valuable function.

By using computer algorithms and immutable data provenance mechanisms to detect AI theft, especially taking trade secrets via some form of electronic data transfer, lawyers can more easily track and prove how data was transferred.

In addition, lawyers regularly use AI to assist with research into infringing methods and apparatus so that proving infringement and defending against infringement claims has become more efficient and effective.

IP protection is a fascinating problem with equally interesting solutions.

Quick To-Do’s

☑ Use Air Cuff locks on trailers.
☑ Have on-site security at facilities that are in high-theft areas.
☑ Ensure drivers go no less than 250 miles prior to stopping.
☑ Ensure drivers do not stop to fuel or break in high-crime areas or certain cities
that are known to be high-theft areas.
☑ Have drivers fuel prior to taking the load out.

–Tammie Dean
Recruitment Manager
Lily Transportation

Vet and Verify

Implement a detailed vetting process, then review and update it every 6 months at minimum. Use the service providers and resources that can help with your vetting process. Pay close attention to details: The difference between your shipment making it from point A to point B could be the difference between a lower-case L and an upper case I or a number added that wouldn’t normally be in the email address.

–Jessica Renner, CCP
Cargo Claims and Risk Manager, Jarrett
Board of Directors, Transportation & Logistics Council

Carefully vet logistics service providers. The frequency of incidents involving thieves acting upon inside information is alarming. Providers throughout the global supply chain have access to cargo descriptions, values, locations, timing, and security measures, providing a road map of what to steal and when to steal it. Entrust cargo to valued business partners.

–Jason Odgers
Senior Vice President
World Insurance Services

Put a strict carrier vetting process in place that outlines the requirements for working with the carrier. This can include years in service, number of power units, safety ratings, and other minimum criteria necessary to start working with a carrier.

–Frank Matarazzo
CEO
Fusion Transport

Vet the carriers in your network. By ensuring your carriers comply with DOT and FMCSA regulations, you significantly reduce the risk of theft. Carriers that adhere to state and national regulations have established their credibility and work consistently to maintain their reputation.

–Mike Trudeau
Executive Vice President of Business Development
Montway Auto Transport

Theft prevention starts with a thorough carrier vetting process, which includes vetting for high value and targeted commodities. We regularly monitor carriers for authority and insurance and have additional protective measures in place for more vulnerable commodities.

–Molly Mangan
Sr. Vice President of Sales
Echo Global Logistics

Learn about modern theft methods, commonly targeted goods, and high-theft regions. Next, audit and continuously optimize your cargo theft prevention processes, technology, and insurance to mitigate risk and loss.

–Kenneth Hull
Vice President, Compliance
Arrive Logistics

Pull together people from within the industry, including the relevant government agencies, to help find a consensus.

–Steve Healy
CEO
COREX Logistics

Enhance physical security measures. Some products have higher street values than others, so those require higher security measures such as physical access controls at the yard as well as seals and sensor cameras on products that provide alerts for tampering.

–Ann Marie Jonkman
Vice President, Industry Strategy
Blue Yonder

Put strong data-collecting and reporting processes in place. Compile and maintain a clean data set regarding stolen loads, attack vectors (direct physical theft vs. digital fraud vs. social engineering), financial impact, and customer impact to help your team deduce the issue’s root cause and mitigate it effectively.

–Jack Gerstner
Senior Vice President, Coverage & Operations
Coyote Logistics

Combine automated carrier vetting technologies, frequent and thorough training/education of front-line brokers to detect fraud schemes, and strict security procedures to validate that the driver and truck arriving for pickup is whom the load was tendered to.

–Jordan Solomon
Director, Risk Management
Kenco

Move highly transferable commodities via rail making sure to load on the bottom of the train. Then there is no way to open the swing doors, preventing theft. When intermodal isn’t an option, careful carrier vetting and putting extra care into highly transferable loads has been our safest option.

–John Newton
Senior Vice President, Business Development
TA Services

Remove all branding from your master cases. Beyond that, it’s critical to provide your end customer with real-time shipping data, including alerts to notify them the moment the product reaches its destination so they can immediately retrieve their product.

–Brian Tu
Chief Revenue Officer
DCL Logistics

Implement a telematics solution to monitor and control refrigeration units, track consignments, and use features like alerts, alarms, geo-fencing, and geo-tracking for full cold chain control. Door sensors, a key feature, prevent cargo theft by providing real-time alerts.

–Alan Peart
Telematics Sales Manager, Global Container Refrigeration
Carrier Transicold

Utilize existing carrier relationships. Knowing who has your freight is crucial.

–Jeff Goins
Director, Carrier Sales
Circle Logistics

Adopt a risk-based approach. Assess each transit by evaluating the cargo for illicit demand, the mode of transport, and location. Tailor security for risks like hijacking or concealed theft and design measures—routes, transit times, driver needs, GPS, remote engine locks, and hardened vehicles—while balancing risk and cost.

–Peter Hunt
VP, Brand Protection, Security and Resiliency
Flex

Implement a two-step process. First, intentionally create a decoy. Load containers with tracking devices and fake shipments. This would potentially catch perpetrators. Second, use tracking devices with artificial intelligence-based analysis allowing for a proactive approach to theft.

–Stephen Dombroski
Director, Consumer Markets
QAD

Provide accurate asset tracking capabilities and increase end-to-end visibility across the supply chain.

–Miriam Molino Sánchez
Head of Industry Practice
Stibo Systems

Put discreet trackers on the product to see exactly when and where the theft is taking place. This will help you identify which provider is at fault and make changes. If you can’t afford to experience any more theft, then I would seek the help of a 24/7 command center service that is trained to action sensor-based alerts to escalate and call the police when necessary.

–Keiley Ostrow
Vice President of Business Development
Reelables

Invest in trailer door monitoring sensors or services. Knowing when a door has been opened unexpectedly provides data to pinpoint when and where threats occur.

–Bryant Smith
Director, Product Management
Manhattan Associates

Start with a stronger mechanism than typical container seals to combat containerized cargo theft. Bolt seals, for example, are inexpensive and commonly used. However, since these can still be defeated, it’s recommended to implement additional deterrents such as locking bars and cable seals.

–Andrew Rossell
VP Operations
ASF Global Logistics

Map out who is responsible for each part in the supply chain, from manufacturing to the distribution center through to the final delivery of goods. There’s no substitute for a detailed understanding of your supply chain partners and the practices they have in place to counter theft.

–Tony Pelli
Practice Director, Security and Resilience
BSI

Combating cargo theft requires a multi-faceted approach. After implementing GPS tracking and advanced monitoring systems, it is crucial to establish a platform for seamless information and alert exchanges between shippers and carriers. This real-time communication not only deters potential theft but also enables a swift response to security breaches.

–Vlad Kadurin
Chief Product and Operations Officer
Ship.Cars

Add layers of security. Implementing company-wide training to educate and ensure security protocols are tailored to operations and confirming cargo insurance covers emerging threats would be first lines of defense.

–Jason Totah
President Integrated Marine Logistics Division
Odyssey Logistics

The key to combating cargo theft is planning ahead. While theft is always unexpected, taking proactive and preventive security measures, as well as investing in technology that offers solutions like GPS real-time tracking through AI, block chain and IoT, is critical to catching theft before it strikes.

–Archita Prasad
VP
UPS Capital

Use cameras on the lots. No storing commodity overnight while in the yard. Driver IDs having to be presented to the shipper. Use freight tracking. Door sensor technology to show when trailer doors are opened and closed. In-trailer camera technology. Trailer tracking. Do not let any loads sit after being loaded. Do not leave any paperwork indicating what is on the trailer lying around.

–Gino Fontana
Chief Operating Officer – Executive Vice President
Transervice Logistics Inc.

Our preventive measures include container security with specialized door seals and locks with shipments monitored via GPS tracking and real-time updates through our command center. Also utilized are bottom-well placement for intermodal transport, railroad drone security and railroad private police force, blind shipping and document processing, and pattern disruptors to avoid predictability.

–Matt Miller
Senior VP of Intermodal Strategy
Cornerstone Systems

Foster a unified approach among employees and drivers through awareness and training programs. When everyone is well-informed about the latest theft tactics and prevention strategies, and remains vigilant for suspicious activity, it becomes harder for theft to happen. Implement SOPs to enhance vigilance and counter the creativity of modern criminals.

–Normand Frigon
Chief Operating Officer
MODE Global

Cargo theft falls into two categories: cargo improperly picked up or dropped off and cargo stolen in transit. Additional biometric or two-factor authentication at origin and destination and more secure, inaccessible and encrypted telematics on trucks and trailers, coupled with more rapid response from law enforcement when in transit.

–Scott Case
Founder and Chief Storyteller
Position : Global

Combating cargo theft starts with implementing real-time tracking and visibility through GPS and telematics. Leveraging software with fraud detection features can significantly enhance proactive monitoring by identifying and addressing fraudulent carriers. This dual approach strengthens security and minimizes the risk of cargo loss, ensuring more reliable and efficient logistics operations.

–Andrew Wimer
Senior Director, Professional Services
Descartes Systems Group

Consult risk-management professionals for best practices insights, SOP support, and proper security procedure guidance – then hold your people accountable for following these procedures

–Jim Heide
COO & Co Founder
Loadsure

Actively monitor and flag issues as they occur. A proactive approach helps prevent problems before they escalate. Real-time data is crucial for immediate tracking and verification. Instead of relying on potentially tricky claims from drivers or customers, definitive tracking of the cargo itself would significantly enhance security and efficiency in the logistics industry.

–Dennis Moon
COO
Roadie

Integrate predictive analytics and real-time data sharing across the supply chain. Supply chain orchestration with transparency of shipments down to the order level and the ability to act on that information ensures a swift and coordinated response to potential threats, minimizing losses and maintaining supply chain integrity.

—Polly Mitchell-Guthrie
VP, Industry Outreach and Thought Leadership
Kinaxis

Constantly move cargo as it is ripe for picking when idle. Sometimes, even proper planning is insufficient to ensure cargo does not sit idle at port or transshipment. Shippers need visibility into en-route risks and delays to react quickly to keep freight away from prying hands.

–Doug DeLuca
Product Marketing Manager
SAP Business Network

Cargo theft is an arms race between thieves and shippers. Embedded trackers in pallets and high value packages assists in recovery, but not prevention. Equipment that makes shipments hard targets is essential; thieves will move on to the next vehicle. Staying ahead of the criminals is an evolving challenge.

–Joe Adamski
Senior Director
ProcureAbility

GPS/Airtags for all trailers provides the transparency needed to trace and track all product – allowing the window for theft to be open as little as possible.

–Jackie Lauer
Warehouse Manager
TA Services

Sounds simple, but make sure that all doors are closed and locked with a yellow security seal. You cut down risk while in motion, so make sure drivers are making the least amount of stops as possible. Tracking trailers and tractors keeps everyone on the same page.

–Dawn Pierce
Warehouse HR Manager
TA Services

Educate personnel about protocol. If you identify vulnerabilities by analyzing where and how thefts are likely to occur, then implement physical security measures, procedural safeguards, and technological solutions – you are going to mitigate risks. Establishing a system to monitor shipments and respond quickly is the best way to avoid suspicious activity.

–Tony Oakes
Training Manager
TA Services

Start with a robust warehouse management system. Include a detailed process focusing on inventory with track and trace functionality to detect issues before the theft goes downstream. Various audits and checks along with ironclad process adherence will uncover the root cause of the problem, allowing solutions to follow.

–Mitchell Houston
Operations Excellence Manager
TA Services

Use predictive procurement tools to quickly identify alternative sources. Using strong supplier relationships with procurement technology ensures supply chains can adapt to disruptions, protecting business continuity and minimizing the impact of theft.

–Edmund Zagorin
Founder & Chief Strategy Officer
Arkestro

Supply chains have more recently become a larger part of political conversation following major events and disruptions such as the pandemic, Panama Canal drought, labor challenges, and geopolitical tensions abroad. These issues have revealed just how interconnected supply chains are, as well as how deeply reliant Americans are on timely and reliable supply chains for essential goods like food, household supplies, and medicine.    

In response to these challenges, and in recognizing key roles that supply chains play in maintaining a strong economy, the Biden Administration has taken several proactive measures to protect and strengthen U.S. supply networks.

For example, Biden established the first White House Council on Supply Chain Resilience to boost national security and the ability to recover from emergencies, as well as the Supply Chain Task Force, which worked with local governments, states, tribes, and businesses to solve supply chain related issues.

The Biden Administration also introduced several other supply-chain related measures, including the Freight Logistics Optimization Works (FLOW) to help ensure a smoother flow of goods, and enhanced security standards to enhance the security of America’s ports.

ASCM has become a strategic partner with the U.S. Department of Commerce along with other key stakeholders across industry and academia. These partnerships will help promote the global competitiveness of U.S. industry, help businesses become more resilient, and make the Department’s supply chain work more innovative and impactful.

U.S. and Global Supply Chains in the Balance

With the U.S. Presidential Election on the horizon, both candidates present policies that would impact U.S. and global supply chains. If the United States were to elect Kamala Harris, it is likely that many of the Biden Administration policies enacted would be upheld and expanded. Her presidency would likely prioritize nearshoring and domestic manufacturing while supporting sustainability, ethics, and fueling the creation of jobs.

If Donald Trump were elected this fall, we could expect to see companies rush to move cargo ahead of new tariffs, which Trump has pledged to impose. Specifically, the Trump Administration would enact a 10% tariff on imported goods and a 60% tax on all goods from China, which could significantly alter future trade in the United States.   

Proactive Risk Management

Whether or not we see a Harris-Walz or Trump-Vance Administration this fall, one fact remains the same: Supply chain organizations must be prepared for a shift and proactively practice risk management. Elections, regardless of the outcome, often result in temporary policy uncertainty, shifting trade relations, and changes in regulations that directly impact supply chain operations.

Effective risk management entails identifying internal and external risks, communicating with stakeholders and outlining mitigation strategies. Supply chain leaders can help build resilience by diversifying suppliers and building up inventory to enhance flexibility in logistics networks. Leaders should also monitor for potential regulatory changes and develop contingency plans for various election outcomes based on the plans articulated by both candidates.    

The ability to anticipate and adapt to market shifts is critical for ensuring business continuity—not just in the context of the U.S. election—but also to instill resiliency against external threats facing supply chains including cyberattacks, geopolitical tensions, delays, shortages, and more.

While a single day of disruption could have some impact, an extended strike would significantly upend the supply chain and flow of goods, for weeks or even months, placing added pressure on ports, rail systems, and trucks.

In terms of the holiday season, retailers who prepared their inventories early are cautiously optimistic, but a prolonged walkout would inevitably affect holiday deliveries and may even drive-up inflation.

Unfortunately, it seems that the negotiation process is going to draw out, and a strike is looking increasingly likely. With the contract affecting over 45,000 workers, businesses must prioritize supply chain resilience and contingency planning.

If there is a labor strike, there isn’t an easy replacement strategy – dock work is very difficult and requires certain skill sets. As government intervention becomes more likely, businesses must develop robust continuity plans to mitigate the economic and consumer impact.

The upcoming election may also play a role in speeding up mediation efforts as the current administration will want to mitigate the risk and subsequent impacts in short order. Still, even with swift compromise and resolution, the ripple effects across warehousing, transportation, and manufacturing will be felt for months.