Cargo losses (by theft cases or accidents) during transportation pressures Inflation rates up, specially for developing economies. It's a bad cycle of loss!
When a cargo is lost due to damage, carjacking or accident, the delivery is not completed. So, a rework need to be done by shipping another cargo to the customer/destination. Not only considering the costs of doing that again, specially in theft cases, your cargo will be sold in the Black Market for a cheaper cost.
Yes, your products will compete with each other, but you are on disadvantage in this competition, but even worst is that in many situation you still have liability over your cargo even if they are being sold on the Black Market by thieves.
Due to high risks of theft cases in emerging economies, your company will have more costs with security and risk management trying to protect the deliveries. These costs will be add to the final price of the product. In a region with high level of thefts, it affects directly inflation rates up.
In many region it is difficult for shippers/manufacturers to compete against the Black Market, which in some cases reduces their profitability, and jobs can be cut to reduce costs. IN these cases, criminals are more in control of market prices of some specific products than even the manufacturer!!
On MV Risk Modeling, we support customers and partners on tackling that by:
- Transforming Data Collection into Knowledge;
- Inspiring Companies to lead changes & Improvements for ERM;
- Turning Risk/Threats into Opportunities;
- Helping societies from many cities to tackle criminality by creating Partnership with Public & Private forces. #threats #riskmanagement #changes #transportation #trucking
This concept was explained by our CEO Cleber Cuzziol at the Summit of Leader in Oxford-UK, where we were granted as Best Enterprise for our region due to our success cases in Loss Prevention.