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6 )) Tackling the Problem Through Trusted Providers Adding the fight against cargo fraud and theft to the list of concerns facing the supply chain is highly taxing for many shippers. The scope of the issue and the sophistication level of the criminals perpetrating the offenses is often best handled by outside companies with expertise in this area. Third-party logistics providers (3PLs) can play a pivotal role in fortifying supply chains against these ever-evolving threats of cargo theft and fraud. By leveraging their expertise, resources, logistics networks, and technology capabilities, these providers can offer valuable support to shippers in implementing robust security measures and mitigating risks effectively. Shippers can depend on their third-party logistics firm to assist with the following: 1. Risk Assessment and Mitigation: 3PLs can conduct comprehensive risk assessments to identify vulnerabilities within the supply chain and develop tailored mitigation strategies. By analyzing factors such as route vulnerabilities, cargo value, and historical theft patterns, 3PLs can proactively address security gaps and minimize exposure to potential threats. 2. Enhanced Security Protocols: Partnering with 3PLs enables shippers to leverage their providers' advanced security protocols and technologies. From GPS tracking and real-time monitoring systems to secure facilities and tamper-evident seals, 3PLs can help to deploy a range of security measures to safeguard cargo throughout the transportation process. 3. Supply Chain Visibility: 3PLs offer enhanced visibility and transparency throughout the supply chain, often enabling shippers to track the movement of goods in real time. By leveraging data analytics and digital platforms, 3PLs can provide shippers with actionable insights into potential security risks, allowing for proactive intervention and response. 4. Vendor Due Diligence: 3PLs can assist shippers in vetting and selecting appropriate carriers, brokers, and other service providers within the logistics ecosystem. By conducting due diligence and implementing vendor qualification criteria, 3PLs help ensure the integrity and reliability of parties involved in freight transportation. The right 3PL will have a network of vetted carriers already in place. 5. Incident Response and Recovery: In the event of a security breach or cargo theft incident, 3PLs can provide prompt incident response and recovery support. From coordinating with law enforcement agencies to initiating insurance claims and implementing corrective actions, 3PLs play a crucial role in minimizing the impact of security incidents on shippers' operations. They can also help shippers develop solutions to mitigate the financial impact of stolen loads. In addition, having a 3PL provide and/or oversee this functionality helps shippers reduce the amount of time and resources they would otherwise spend on cargo theft and fraud prevention and resolution. What to Look for in a 3PL Not every 3PL has a full complement of experience and know- how in the fight against cargo crime. Take these steps in order to find the right provider to help safeguard your shipments. Conduct due diligence. Prioritize providers with a proven track record in fraud prevention and a demonstrated commitment to helping clients mitigate the risks and impacts of cargo theft and fraud. While these services may entail additional costs, the investment is justified when weighed against the potential risks. Resist the temptation to base your 3PL selection solely on price and on-time performance metrics. Evaluate their technology. Ensure that the 3PL employs sophisticated systems for fraud prevention, capable of identifying bad actors and conducting thorough investigations into instances of fraud and theft. Review their carrier vetting. Look for a 3PL with an established procedure for reviewing the credentials of new carriers and an ongoing process for continuous review and evaluation of existing carriers. Your 3PL should select carriers that meet criteria such as: • At least 12 months of active, consecutive operating authority • No "red flags" in fraud/background checks • A Satisfactory or None safety rating • No claims of double brokering • Verified vehicle inspections by DOT Check their procedures. Look for a 3PL with well-defined standard operating procedures governing the conduct of all carriers. The provider should demonstrate meticulous performance tracking and adherence to established protocols. Ask about digital security. Ensure that the 3PL employs state-of-the-art digital security measures, such as multi-factor authentication and real-time notifications for platform logins. Demand transparency. Insist on real-time shipment visibility and tracking capabilities, facilitated through robust relationships with third-party data providers. The 3PL should seamlessly integrate external data feeds into its system, enabling comprehensive tracking and monitoring of cargo movements.

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