If a trailer is stolen or tampered with, the cost of missing goods can be very high. To calculate the full cost of cargo loss, supply chain managers have to consider more than just the loss of the missing goods. Cost of stolen or damaged equipment, insurance claims and premiums, expedited freight costs and reputation risk must also be included.
Cost of equipment: If a truck or trailer is damaged or stolen during a theft, companies will need to pay for repairs or replacement. Sourcing new equipment or parts can be arduous. Supply chain interruptions during this down time can also be very costly. Future loads that were slated for the out-of-service tractor or trailer cannot be fulfilled, resulting in less income for the trucking company.
Insurance claims and premiums: The cost of an insurance claim after cargo theft should be considered by supply chain managers in addition to a likely insurance premium hike.
Expedited freight costs: Once a delivery is delayed due to theft, replacement goods need to be sourced and delivered. To stay as close to an on-time delivery as possible, often the replacement goods need to be shipped quickly at an additional cost to the company that incurred the theft.
Reputation risk: Whether you are a manufacturer or shipper, dependable deliveries are extremely important to you and your clients. Companies are less likely to look favorably upon those fleets who have experienced theft. They have to replace the stolen items to keep up with demand and have to manage the delivery disruptions. Delayed shipments can mean the end user seeks out a different product resulting in lost sales. Additionally the thieves can tamper with the stolen goods which can negatively effect the brand’s reputation. Businesses may decide to cancel other deliveries or forgo the relationship entirely and seek out a more security minded fleet.
