Facts
In – Dept : How Cargo Theft Impacts Indian Logistics Industry and what’s the solution
At present, the demand for logistics industry is increasing at a fourfold pace day by day. The logistics sector is also considered the backbone of the Indian economy. The logistics industry is facing many challenges. One of the biggest challenges is cargo theft. Theft of goods from trucks, warehouses is not only harmful to the Indian economy but is also the biggest obstacle in the supply chain. Today in this article we will know about the cause, effect and solution of cargo theft.
What is the impact of cargo theft on the logistics industry?
(1) Economic loss
- Indian logistics companies suffer losses of crores of rupees every year due to cargo theft. Once the goods are stolen. Then it is a big challenge to retrieve it. As a result, traders and customers suffer losses.
(2) Supply chain disruption
- When the goods do not reach their destination. Then FMCG, Pharma, E-commerce companies suffer huge losses.
(3) Increase in insurance premium
- When thefts happen repeatedly in Indian logistics companies, the insurance companies increase the insurance premium amount of these logistics companies, which increases their operational cost.
(4) Decrease in customer trust
- Due to delay in delivery or arrival of defective goods, customers lose trust not only on the logistics company but also on the brand.
Let us know the reasons for cargo theft
Lack of security measures
Trucks and warehouses do not have as much security arrangements as the trucks and warehouses of Western countries. Lack of CCTV cameras in Indian warehouses and involvement of truck driver and warehouse owner in corruption
Unorganized transport system
40% of logistics in India comes from the unorganized sector where monitoring is the biggest problem.
Excessive transit time
There is a high possibility of theft during long distance travel. There are many roads in India where there is no arrangement of CCTV cameras
cargo theft reasons fully explained
and lights.
Weak technical security
Lack of modern GPS tracking and other digital devices that can monitor cargo goods.
Solutions to prevent cargo theft in Indian logistics industry
(1)GPS tracking and IoT based monitoring
- GPS tracking devices and IoT based sensors should be installed in the tracks, as a result of which the location of the truck can be traced in real time.
(2) RFID and barcode system
- RFID and barcode system should be used to monitor the goods loaded in trucks.
(3) Smart lock and CCTV camera
- Smart lock system and CCTV camera should be installed in trucks and warehouse. By installing smart lock system, no person will be able to break the lock easily and even if he tries to break it, he will be caught because it will be visible to CCTV camera.
(4) Secure parking zone
- Secure parking zone should be created on highways where drone camera or spy camera should be there so that the truck can be monitored.
(5) Strong logistics infrastructure
-
truck cargo theft reasons
Under public private partnership, the government and private companies should jointly develop the Sikar Transport Corridor and modern warehouse system.
(6) Awareness and training of employees
- The truck driver and the warehouse employees should be made aware so that they can identify if there is a possibility of theft. If there is a possibility, they should also know how to deal with it. Therefore, training is also very important. Background verification should be done before hiring truck drivers and warehouse employees.
(7) Digital payment and transport management system
- The thief not only stole the cargo but also took money from the truck, which they received as rent for the vehicle. There are several Digital payment should be promoted. When digital payment is promoted, transactions will become online, so there will be no robbery and at the same time, transport management system should be used to make the logistics industry more transparent.
(8) Government and legal reforms
- The government should make strict cyber laws and also create a special task force to coordinate between logistics companies and the police
Conclusion
Cargo theft has become a common problem in India. To deal with this, we need to identify the causes and use solutions like RFID, GPS tracking etc. to work on these causes and at the same time, we should also amend our cyber laws.
