14


LAST MILE CARGO THEFTS


transport goods in a van or personal vehicle, delivering 100 or so packages at a time within a small area. The delivery driver is paid per package delivered or at an hourly rate and it is frequently unknown what sort of due diligence is done to ensure the driver is reputable, as opposed to when shipments of goods are transported to storefronts and stricter transportation security standards are in place.


At this point in the chain, warehouses and logistics hubs generally are not tracking losses by these delivery drivers since responsibility is transferred once they have handed the packages to the delivery subcontractor. Once again, the only way that the logistics provider or the product owner will know about the loss is through a customer complaint. For many items bought online, especially more expensive products such as electronics, some procedures may be in place requiring a signature for delivery. However, subcontracted


Are you undergoing changes in warehouse facilities to accommodate the rise in eCommerce?


delivery drivers may not always ask for that method of verification. Further, there is rarely any verification of the signature against any sort of identification. Consequently, there are a number of possible holes within the chain of custody for the package once it is out for delivery to the individual customer.


In such cases, the lack of attention to these delivery subcontractors exposes companies to theft risks that they are most likely unaware of. With any subcontracting, measures must be put into place to ensure that delivery drivers are credible, reliable, and secure when handling and delivering packages and that they can effectively account for deliveries. From a contractual and standards point of view, it is important to address what obligations these delivery drivers are under:


• Who within the supply chain takes on the responsibility for ensuring delivery subcontractors meet the standards set for distribution?


• What are those standards? • How are those processes verified? • What audit procedures are in place?


YES 23%


NO 77%


Respondents offered the following as examples of changes that their warehouse facilities are making in order to accommodate the rise in eCommerce:


• More efficient operations • Expanding operations • Adding 2D barcodes for post tracking • Changing processes and order picking


• Performing dedicated stress tests on packages


• Increasing automation


• Developing smaller pick and ship operations


Typically, there may be only a minimum amount of due diligence, such as a background check upon employment, but the oversight likely decreases further down the subcontracting chain, putting companies at risk.


The big dilemma is how to effectively mitigate the risk of “last mile” theft. As of now, a principal challenge is understanding the size and scope of the problem. Examining how companies consolidate their customer complaint data and other loss prevention and security information in a manner that makes sense is key to shedding light on the issue. Data sharing and collation within a company and throughout a logistics chain from the customer service side to the security side is critical. With that information and understanding as a guide, professionals can then develop standards, measures, and logistics workflows to address the issue.


Do you have security measures in place specifically to prevent theft along last mile delivery


NO 39%


YES 61%


The following are a list of security measures that our respondents have in place specifically to prevent theft along last mile delivery:


• Security requirements


• Driver must always check with home base, report any change to the delivery plan, and activate panic button if necessary


• Padlock, GPS, and, for HVTT, alarm on doors and engine block


• Standard operating procedures


• Variety of measures depending on the customer seals, including padlocks and slam locks


•


All items sent require a delivery confirmation/POD


• Contractual security clauses which apply also for subcontractors and audits in locations based on TAPA Standards


• Standards based on commodity, value, and theft risk


• Minimum security standards • Security instructions and staff training


• Routines, slam locks, and alternative delivery patterns


• LSP must comply with defined security measures independent of last mile or regular route


• CTPAT/TAPA TSR requirements • Security locks


• Use only adequate transport companies


• High value shipment requires escorts & technology


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