Navigating the Maze: How to Manage High Value Goods Shipments in Today’s Logistics Landscape

Strained capacity. Skyrocketing costs. Plunging visibility. The current state of logistics for high-value goods? We wouldn’t call it calm. It’s more like a white-knuckled grip on the steering wheel of a truck careening down a mountain road.

But fear not! GPX Intelligence is your map, your compass, and your emergency flare all rolled into one. We’re here to help you navigate the chaotic landscape and arrive at your destination with efficiency and peace of mind.

Let’s unpack three hard-hitting problems that paint a vivid picture of the challenges you face:

• Shipment Complexity: Global complexity aside, even U.S. shipments carry tons of complexity. Keeping track of it all can feel like a quagmire of paperwork and endless manual efforts.
• Risk of Shipment Loss: On top of the risks faced in the residential shipments sector, business shipments have additional risk factors and threats, especially when considering the monetary value of business goods.
• Ownership During The Unpredictable: Business shipments are increasingly at risk of environmental threats, global political instability, and cyberattacks. Businesses who are prepared for these unpredictable events will outlast those who are not.

Shipment Complexity: The $1.57 Trillion U.S. Logistics and Shipments Maze

The global logistics industry is a behemoth with trillions of dollars in goods and trillions of dollars in shipment costs. But, in the U.S. alone, the logistics industry is projected to reach a staggering $1.57 trillion by 2029, according to Mordor Intelligence. That’s a lot of packages, pallets, and paperwork. But with growth comes complexity, and many businesses are struggling to find their way through the labyrinth.

It’s often on the individual businesses to find a path through this labyrinth, as 34% of shipping and logistics firms do not have a digital transformation strategy in place, according to S&P Global. This means that businesses are left leaning on the rudimentary tracking tools that may exist, or going without shipment visibility if using one of those 34% of providers. Therefore, this complexity and volatility in the world of logistics is causing organizations to adjust their own supply chain technology investments to improve resiliency, agility and make operations more intelligent.

The GEODIS Supply Chain Worldwide Survey found that only 6% of the 623 companies surveyed claimed to have achieved full supply chain visibility, despite being the third most important priority, according to an article from SER Group. SER Group calls-out that “accurate visibility depends on effective communication between supply chain partners.”

However, this accurate visibility across supply chain partners is tough to achieve, given that most warehousing is still operating in the dark ages. According to a 2021 report from Business Wire, more than 80% of warehouses have no automation or updated technologies. This leads to a visibility nightmare, as employers end up requiring suppliers to install complicated RFID Gateways at docks that only capture a fraction of the shipment picture.

Risk of Shipment Loss: The $1.5 Trillion Blind Spot In Business Shipments

Imagine losing $1.5 trillion just because you don’t know where your stuff is. That’s the reality for many businesses thanks to poor visibility and fragmented data across carriers. Shipments with multi-leg journeys are especially at risk for confused tracking leading to misplacement or loss. Think of it as driving blindfolded on a highway – not exactly a recipe for success. Certainly, residential shipment theft is an issue in the U.S., more humorously highlighted by the likes of Mark Rober, deterring “porch pirate” thieves with glitter bombs and fart spray. But, what about B2B shipment loss?

While direct data is lacking for B2B shipment losses or thefts, we can try to extrapolate from residential theft figures. If we consider:

• 260 million reported stolen packages in the U.S. per year (SafeWise, 2022)
• An estimated 60% of online packages are residential deliveries (Statista, 2021)
• This leaves roughly 40% (around 104 million packages) potentially eligible for B2B deliveries
• Not all stolen packages are reported, and B2B thefts might go unreported more often
• However, B2B packages might be more valuable on average

Based on these assumptions, it’s plausible that tens of millions of B2B packages could be stolen in the US annually. This is still a rough estimate, but it indicates the potential magnitude of the issue.

Here are some risk factors for high value goods shipment thefts:

• Higher value goods: B2B shipments often contain items like electronics, machinery, or other valuable resources, making them more attractive targets compared to typical residential packages.
• Less security at delivery sites: Many businesses, especially smaller ones, may not have the same level of security measures as residential homes, such as security cameras or doorbells.
• Untracked packages: If B2B deliveries are not tracked as closely as residential packages, theft might go unnoticed for longer periods.
• Internal theft: Although less frequent, the possibility of internal theft within organizations receiving B2B deliveries also exists.
• Fake pick-ups and deliveries: Fraudsters may pose as legitimate carriers and schedule pick-ups of high-value goods, only to disappear with the merchandise.
• Cartel activity: In certain regions, cartels may target valuable shipments for extortion or theft.

Overall, while the exact number of B2B package thefts remains elusive, it’s safe to say the issue is likely significant and warrants proactive measures from businesses.

Ownership During the Unpredictable: The Make-or-Break for Business Shipments

Just when you think you’ve got it figured out, Mother Nature throws a curveball, or a pandemic disrupts everything. It’s enough to make even the most seasoned logistician feel like a rookie.

• Natural disasters: Floods, earthquakes, hurricanes, and other natural disasters can disrupt transportation networks and damage shipments.
• Global political instability: Unrest, war, and terrorism can pose significant risks to high-value goods shipments in certain regions.
• Cyberattacks: Hackers can target logistics companies or your own high-value goods business to gain access to shipment data, which can then be used to track and intercept goods en-route.

If any of the above instances were to occur, most businesses are unable to retake control of the situation and gain the visibility and clarity needed to continue meeting critical supplier or customer needs. 

Despite a global pandemic that disrupted supply chains and shipments all over the world, businesses haven’t learned to invest in long-term solutions. Once the (relatively) short-term supply chain pains were alleviated, it was back to business-as-usual. This is illustrated by the aforementioned statistic, showing that 80% of warehouses (which play a large part of B2B shipment starts or ends) lack automation and updated technologies. 

Metrics that Matter for High Value Goods Shipments

Businesses managing high value goods should closely monitor key metrics to ensure the efficient and secure movement of their shipments. This is important in both customer deliveries and supply chain operations. Here are five common metrics one should review regularly:

• On-time Delivery Performance:
  • Percentage of shipments delivered on or before the scheduled delivery date.
  • Monitoring on-time delivery helps ensure customer satisfaction, maintains relationships, and prevents penalties for delayed shipments.
• Shipment Visibility and Tracking:
  • Real-time tracking and visibility of shipments in transit.
  • Having accurate and up-to-date information on the location and status of shipments helps in proactive problem-solving and reduces the risk of theft or loss.
• Inventory Turnover:
  • The rate at which inventory is sold and replenished.
  • High-value goods companies should aim for optimal inventory turnover to avoid overstocking or understocking, which can impact costs and customer service.
• Damage and Loss Rates:
  • Percentage of shipments that incur damage or are lost in transit.
  • Minimizing damage and loss rates is critical for preserving the value of high-value goods and reducing financial losses.
• Supply Chain Efficiency:
  • Metrics such as lead time, order fulfillment time, and cost per unit transported.
  • Analyzing supply chain efficiency helps identify bottlenecks, optimize routes, and reduce costs associated with transporting high-value goods.

Additionally, high-value goods businesses may also want to consider metrics related to security, compliance, and customer satisfaction, as these factors play a crucial role in maintaining the integrity of their brand and the trust of customers.

Maintaining Security of High Value Goods Shipments

Security is paramount for high-value goods companies, and monitoring specific security metrics is essential to safeguard their valuable assets during transportation. 

Keeping track of shipment security incidents is crucial. This involves counting the number of security breaches during transportation, such as theft, tampering, or unauthorized access. This metric serves as a vital indicator of the effectiveness of existing security measures and provides insights into areas that may require additional security enhancements. By analyzing trends in security incidents, companies can proactively address vulnerabilities and improve their security protocols, reducing the risk of loss or damage to high-value goods.

Monitor the “chain of custody” closely. This entails meticulously tracking and documenting the movement of high-value goods from their point of origin to the final destination. Maintaining a clear and unbroken chain of custody ensures the security and authenticity of the goods. It enables companies to verify that the products have not been tampered with or replaced during transit, instilling trust in customers and partners alike. A well-documented chain of custody also aids in investigations should any security incidents occur, helping to identify the point at which a breach may have occurred and enabling appropriate actions to be taken.

Solutions for High Value Goods Shipments

The great news is: several types of technology exist to address security issues associated with the transportation of high-value goods. These technologies can help enhance security, monitor shipments, and mitigate risks. Here are some key technologies and solutions:

• GPS Tracking:
  • GPS tracking devices can be installed in shipments to provide real-time location data.
  • These technologies help monitor the movement of goods, enabling companies to track their shipments and respond quickly to any deviations from the planned route.
• IoT Sensors:
  • Internet of Things (IoT) sensors can monitor various environmental conditions within shipping containers, such as temperature, humidity, and shock.
  • These sensors provide data in real-time, allowing companies to ensure that high-value goods are transported under appropriate conditions and detect any anomalies that may indicate tampering or damage.
• Blockchain:
  • Blockchain technology can be used to create an immutable and transparent record of a shipment’s chain of custody.
  • Each party involved in the supply chain can record their interactions with the goods, providing an unforgeable digital trail.
  • Blockchain helps ensure the authenticity of high-value goods and simplifies the auditing and verification process.
• Security Seals and Tamper-Evident Packaging:
  • Specialized security seals and tamper-evident packaging can be used to secure containers and shipments.
  • These seals are designed to show clear signs of tampering or unauthorized access, alerting security personnel to potential issues.
• Surveillance and CCTV Systems:
  • Surveillance cameras and closed-circuit television (CCTV) systems can be installed in and around transportation vehicles and storage facilities.
  • These systems provide visual monitoring and can act as a deterrent to potential thieves or vandals.
• Advanced Analytics and AI:
  • Artificial intelligence (AI) and advanced analytics can be used to analyze data from various sources, including GPS trackers, sensors, and security cameras.
  • AI algorithms can identify patterns and anomalies, helping companies detect security threats or irregularities in real-time.
• Biometric Access Control:
  • Biometric authentication systems can restrict access to high-value goods and storage facilities.
  • Only authorized personnel with the appropriate biometric credentials can access the goods, reducing the risk of internal theft or unauthorized access.
• Electronic Locking Systems:
  • Electronic locking systems with remote control capabilities can secure containers and vehicles.
  • These systems allow for remote locking and unlocking, enhancing control over access to shipments.
• Security Awareness and Training:
  • Implementing security awareness programs and training for employees can also be considered a technological solution.
  • Well-trained personnel are more likely to identify and respond appropriately to security threats.

Businesses managing high-value goods often use a combination of these technologies and solutions to create a comprehensive security strategy tailored to their specific needs and risks. The choice of technology depends on factors such as the nature of the goods, the transportation methods, and the level of security required. GPX Intelligence is such a company with solutions for high-value goods businesses, offering key location visibility options through a combination of our hardware and software.

The SCOA Strategy for Shipment Tracking

GPX Intelligence doesn’t just navigate the shipment chaos along with you, we conquer it with our location visibility suite of solutions. By combining our platform and tracking technologies, we help you apply our proprietary SCOA strategy to crush your shipment and supply chain woes:

Secure and Monitor:

• Real-time location tracking: Monitor every shipment’s location in real-time, deterring theft and facilitating quick recovery if needed.
• Tamper detection: Integrated tamper sensors with GPS detect unauthorized removal of tracking technology.
• Geofencing: Set virtual boundaries around specific areas (warehouses, delivery zones) and receive alerts if shipments go off-course, preventing unauthorized access or diversions.

Collaborate:

• Partnerships for Progress: Collaboration is key in this complex ecosystem. GPX Intelligence’s platform connects you more directly to your existing network of trusted partners and teammates, from your own warehousing specialists, to your 3rd-tier supplier, ensuring everyone has access to the insights they need that will further your growth strategies.
• Accurate ETAs: Share real-time location data with your suppliers and customers. GPX’s shareable real-time location insights provide others with shipment progress and provides delivery visibility, enhancing transparency and helping to manage expectations.
• Proactive communication: Alert customers about potential delays or changes in delivery schedules based on unexpected conditions or other disruptions.
• Proof of delivery (POD): Automate POD with geofencing and timestamping, eliminating manual processes and reducing delivery disputes.

Operationalize and Expand:

• Multimodal tracking: Integrate GPS with other tracking technologies like bluetooth low-energy (BLE) tags to track individual items within shipments, especially for high-value goods.
• Warehouse optimization: Apply your new location visibility technologies within the warehouse. Track inventory movement within warehouses for improved space utilization and logistical efficiency.

Analytics and Insights:

• Tame the data beast: We understand you’re drowning in data. GPX Intelligence’s platform acts as your trusty data wrangler, extracting valuable insights from the data you generate when you achieve increased visibility. GPX transforms this data into actionable intelligence. Think of it as turning a messy spreadsheet into a treasure map, highlighting hidden opportunities for growth.
• Jumpstart performance analysis: Analyze historical data on delays and dwell times to identify areas for improvement and optimize fleet management.
• Embrace agility: With real-time insights and predictive capabilities, you can quickly adapt your operations to changing circumstances, minimizing the impact of unforeseen events. Think of it as giving your supply chain the ability to pivot like a ballerina.

Gain invaluable insights into your entire shipment ecosystem with GPS and similar value-additive technologies, leading to increased security, enhanced customer experience, operational efficiency – and ultimately, higher delivery success rates.

In Summary

In the challenging landscape of high-value goods and business shipments, GPX Intelligence emerges as a guiding beacon, offering comprehensive solutions to navigate the turbulent terrain. We shed light on the vulnerability of high-value goods to natural disasters, global instability, and cyberattacks, among other threats.

This complex logistics environment is plagued by shipment complexity, the risk of loss, and unpredictability. Businesses grapple with intricate paperwork, lack of visibility, and inadequate tracking tools, but GPX Intelligence steps in as a trusted ally. 

GPX Intelligence provides a range of technological solutions, including GPS tracking, IoT sensors, and advanced analytics. We help safeguard shipments and optimize supply chains. By offering real-time location tracking, tamper detection, and geofencing, we empower your business to secure, collaborate, and expand your operations effectively. With a focus on analytics and insights, GPX Intelligence transforms data into actionable intelligence, enabling businesses to adapt and thrive in this ever-evolving landscape. 

Ultimately, GPX Intelligence equips high-value goods companies with the tools and knowledge necessary for success, promoting enhanced security, customer satisfaction, and operational efficiency.