The impact of globalisation on the supply chain has made it more complex, trans-national and increasingly reliant on information technology. Cross-border investment, wider information networks, more focused marketplace strategies and tighter vendor relationships have all contributed to the reshaping of supply chains and logistical processes.
The benefits, in terms of greater flexibility and efficiency in sales and production, have been great. But the costs, in terms of fraud, theft and other losses, are also sizeable. At every step along the supply chain businesses have become more vulnerable to an array of frauds ranging from simple theft, through disguising the poor quality of materials, to the misrepresentation of inventory assets.
A survey for Kroll in 2007 found that 42% of firms worldwide had suffered from at least one of supplier fraud or the theft of physical assets - just two of the myriad ways to abuse supply chains - and 9% had suffered both.
The spread of global crime networks has led to an escalation in cargo theft in recent years. As a consequence, an estimated $30 to $50 billion in cargo is stolen worldwide each year. Criminal networks have adapted to the new technologies of the cargo transportation industry and infiltrate the key transportation hubs in Europe, Latin America, Asia, and the United States.
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