From Real-Time Tracking to Risk Prediction: The Future of Supply Chain Security

No sporting event garners more worldwide attention or is as globally significant as the Olympics. The stakes are high and the amount of time, training, and resources that are poured into the teams and athletes are second to none. So, the pressure to deliver is immense. While the case can be made for many events, personally nothing makes me hold my breath more than the 4x400 Track and Field relay race. It’s the perfect event blending speed, precision, and teamwork. Each baton pass requires a level of reliance, trust, and urgency to successfully transition through the hand of the runner delivering the baton to the one receiving it.

In its race to deliver, it's an event reminiscent of our supply chain—interdependent and only as successful as the sum of a team’s ability to transfer goods securely, quickly, and reliably. If a baton pass fails, the entire team pays a price and can quickly find themselves playing catch-up or even completely blowing the race.

In terms of supply chain security, the journey of any product is multi-faceted. From the initial production of the goods to the shipping and transporting of the freight, to the receiving and storing of the inventory. Each leg of the journey is an opportunity for criminals to strike and to profit.

According to CargoNet, cargo theft in 2024 has spiked to unprecedented numbers in the U.S. and Canada. Reported incidents of cargo theft have jumped 27% compared to 2023, translating to over $450 million worth of stolen goods.

Like an anchor leg on the relay team, when it comes to security, we want to turn our focus to what lies ahead as we sprint towards the future of protecting our supply chain.  

What is Supply Chain Security?

Supply chain security refers to the management and measures companies take to ensure the safe movement and delivery of any kinds of goods whether physical or digital. This also extends to any kind of delivery system including software supply chains which together makes up an organization’s overall supply chain strategy.

Its focus is to protect and effectively manage any potential disruptions or risks associated with external suppliers, vendors, transportation, and logistics. As you can imagine, with so many moving parts and third parties involved, criminals are constantly looking to infiltrate any potential weaknesses along the supply chain. And when they do, the losses can be exponential, with the impact felt across multiple sectors and entities due to its interconnected nature. Not only is it a financial concern but one of safety too, as staff members can be at greater risk to dangerous situations.

As criminals look to exploit any kind of vulnerabilities along the supply chain, they are becoming more sophisticated. However, with cutting edge technologies, security teams are better equipped than ever to meet the challenge. They are increasingly turning to systems that are evolving from passive and reactive security systems to a more proactive one with AI-driven risk management and protection.

Route Optimization

When it comes to shipping and receiving goods nothing can be more frustrating than delayed deliveries. With AI-based systems, companies can improve their shipping channels by analyzing data such as traffic flow, vehicle load, weather conditions, and road work to not only better estimate delivery times but by optimizing the quickest and most efficient routes before vehicles even leave. If AI anticipates a change in any of those factors, routes can be altered automatically. By anticipating any problems or delays, it not only ensures speedy and reliable delivery times, but it can result in cost savings too. As better routes are planned, travel distances are reduced, leading to better fuel savings. Furthermore, there is less wear and tear on delivery fleets, and they are used more efficiently with less time idling and more time on the move.

Shipment Tracking

When it comes to route optimization it often goes hand in hand with shipment tracking. While charting a course is one thing, making sure things are on track and on schedule is another. Any traveler who tracks their luggage with an Airtag can relate to the comfort in knowing that our belongings are heading where we are. And for those of us who have ever ordered and tracked our Uber Eats delivery while battling hunger pain, we want to know our tacos are arriving when the app says it is.

Real-time tracking of merchandise and supplies can be a timely indicator of any potential problems. Vehicles that are at rest for too long can be a sign of possible delays in delivery or that something is happening out of the ordinary. Inventory that is moving outside of the parameters of pre-determined shipping routes can indicate potential theft, which can trigger companies to investigate and react up-to-the-minute and in turn can minimize loss and increase the chance for recoupment and possible prosecution.

Inventory

Inventory can be considered the lifeline of any business. Inventory translates to sales which translates to profits. And whenever there are large sums of money to be made, criminal activity isn’t far behind.  

When it comes to cargo theft, warehouses, distribution centers, and truck stops are among the most targeted. The idea is that cargo at rest is cargo at risk. The more goods that are stationary and sitting, the higher the likelihood that they can go missing. This is why AI can be a formidable force for surveillance and securing inventory.

Surveillance systems are no longer just passive lenses watching and reacting only after a crime has already been committed or merchandise has long gone missing. AI-backed systems can now keep track of inventory up to the moment by scanning barcodes or labels as they move from cargo ships to trucks to warehouses. This creates an accounting that alerts teams whenever things start to go amiss.

When something looks out of place or there is a disruption, AI can take quick action to assess the situation and take appropriate measures. This can include alerting security teams, authorities, locking areas down, or activating audible alerts or lighting.  

Predictive Maintenance

Consider AI as a 24/7 engineer constantly checking and anticipating when machinery, vehicles, or security systems need maintenance or on the verge of failure or being breached. By monitoring physical assets like machinery and ensuring that they are running at proper temperatures, measuring consistent output, and hours in use, AI can alert businesses when maintenance is required well before it is rendered inoperable.

The same can be said for security, network, or software systems. AI can run diagnostics and risk assessments to identify potential vulnerabilities before anyone has a change to infiltrate them. This shores up any weaknesses and allows systems to update and patch any new blind spots regularly to meet rising threats.

Predictive Risk Analysis

One of AI’s most impressive traits is its ability to learn and continuously improve. As it collects more data, and analyzes more incidents, it can take on an even more anticipatory nature. AI-based security systems can analyze data and identify markers or signs indicative of past breaches of security and apply it to identifying potential red flags for future transgressions. This can be anything from picking up on patterns of behaviors or a congregation of people in a certain area to identifying known perpetrators or types of vehicles used in previous crimes. 

All these can give clues and information that AI security systems can process and analyze to foresee potential problems. This can give security teams advance notice to crimes that may are yet to unfold, giving them a readiness advantage to react and mobilize.

Appraising Your Supply Chain

With AI-enabled systems supply chain security is as formidable as ever. Businesses are better equipped to conduct risk assessments, create contingency plans, identify threats, and protect inventory and critical infrastructure with a more predictive nature.  

With so many moving parts, AI-powered solutions can help you keep your finger on the pulse of your business from maximizing operational efficiencies, fighting theft and crime, as well as ensuring your network is secure. To see how LVT can help you optimize your supply chain security and how our AI-enabled mobile security systems can help bridge any missing gaps, reach out to see how LVT can be a partner in your overall security plan.