Global, In-Transit Security for Multinational Computer Manufacturer

Cargo theft has expensive consequences when products are built-to-order. Stolen loads translate into unprofitable sales because all computers must be re-built to customer specifications and expedited for delivery. Waiting and hoping for inventory recovery is not an option when your clients are expecting timely delivery of their computers. Customer satisfaction always requires immediate replacement regardless of future recovery.

With trucks traveling thousands of miles of unsecured roadways, and criminals lurking and waiting for an opportunity, theft and hefty losses were a very real potential for this computer manufacturer. And then the security risks magnified by a factor of 10—this manufacturer moved some of its operations from North America to Asia Pacific. Now the opportunities for theft grew exponentially, and this manufacturer faced a myriad of concerns about the effect this change to the supply chain would have on its customers—and its bottom line.

Luckily, this computer manufacturer already had a long-term, global working relationship with FreightWatch Group (FWG). When FWG first started working with this client, they were losing several truckloads every quarter amounting to multi-million dollar product losses. The culprit? Over 11,000 miles of unprotected roadways, multiple third-party carriers, and distributed depots and cargo destinations. This situation was serious, and FreightWatch made it our mission to secure our client's products. Within just three months of implementing FreightWatch's in-transit security procedures, and with constant compliance monitoring by FreightWatch logistics security officiers (LSOs), our client was able to reduce losses in just the first quarter by over 95%.

When FreightWatch stepped in to help this client with its transition to Asia Pacific manufacturing, our consultants recommended establishing a cost-effective Risk Management Officer (RMO) program in locations most vulnerable to catastrophic theft (theft of a full truckload). As part of this RMO program, FreightWatch LSOs helped the client to devise security protocols, advised drivers on these security guidelines, and monitored compliance against the client’s security standards.

Over the past five years, our client has moved billions of dollars worth of computers through its Asia Pacific supply and distribution chains. In part from the logistics security infrastructure provided by FreightWatch Group, over 99.99% of their product has been securely delivered to its intended destination.