Conducting such verifications can be time-consuming and costly for the company and therefore it comes as no surprise that many businesses prefer to deal with a business partner that has been already certified as an Authorised Economic Operator with high levels of supply chain security. In one study coordinated by the Cross-Border Research Association, 40% of the companies participating indicated that the main motivation to be involved in a voluntary supply chain security programme was that it is a market requirement asked by their clients or suppliers. On the other hand, only 1% indicated cost-reduction benefits.
The cost-reduction benefits mentioned above can be realised in many different forms; however, it is important to note that supply chain security investments are, by their nature, designed to mitigate cost rather than generate savings. The most noticeable benefit that can be realised due to increase security of the cargo and the conveyance system is reduction in theft and loss of the product. Such investments have been shown to reduce theft by around 38%. On a global level, cargo theft amounts to around US$50 billion annually in direct stolen products, and over $60 billion indirectly due to reasons such as investigation, insurance, re-order, and damage to the brand image – and these figures are relatively low since not all cargo theft is reported!
Advertisement
FEATURED COMMENT
I found the artcle so much interested, it really explains a concept that is crucial for compaies to sustain a distinguis
interested field of improvement
I found the artcle so much interested, it really explains a concept that is crucial for compaies to sustain a distinguished level of performance, Thank you Mr. Asad for such informative article.
Site Map
FEATURED COMMENT
I found the artcle so much interested, it really explains a concept that is crucial for compaies to sustain a distinguis