Following on the successful event in Johannesburg focusing on the latest in security processes as it pertains to the logistics market, Hi-Tech Security Solutions and South African chapter of the Transport Asset Protection Association (TAPA), held a second Executive Breakfast in Durban to once again discuss logistics security.
The event was well attended with visitors from a variety of businesses as well as a few system integrators joining Hi-Tech Security Solutions for the morning at the picturesque Durban Country Club.
Making the event possible were three sponsors who had tabletop displays on which they exhibited their solutions for the various aspects of the logistics market. Each sponsor was also given a five minute slot to present to the audience, highlighting the services and solutions they offer in this market. Details of these services are highlighted later in this review. The sponsors were:
• Cathexis,
• Morpho, and
• Pulsit.
Compliance benefits the bottom line
Steven Lashmar, marketing and sales manager at TÜV Rheinland Quality Services South Africa was first in the spotlight. Lashmar spoke about how compliance to internationally recognised standards positively impacts the bottom line of logistics businesses. The reason for this is that logistics companies that follow standards, a few of which he highlighted later, would deliver a better, more predictable service with fewer losses and ‘unfortunate events’.
Lashmar explained that all businesses are under scrutiny. Whether it’s from customers, boards of directors, competitors, employees, criminals or others (or all of them). This scrutiny results in an image of the brand and what it is capable of, an image that clever marketing can’t quickly or easily overcome. When the organisation’s processes are in a mess, all the people watching are unhappy, even though they might not know what the actual problem is. All they see is the mess in the service provided or returns they obtain from the company. The only happy watchers are the criminals because a mess is more easily taken advantage of – in other words, it’s easier to commit their felonies.
When the organisation implements standard systems, processes and procedures, and also commits to training its staff to follow them to the letter, the situation turns around. Now the watchers are happy because the company is transparent in its dealings, delivers the goods customers want and the returns investors expect. The only unhappy party will be the criminals as the business has made itself a harder target, meaning the bad guys need to do more work and take longer to make a buck. And in the criminal world, easy targets are the most popular targets.
Lashmar highlighted the real issues logistics companies in South Africa face on a daily basis by providing real statistics of crime in this industry, noting that all the numbers have risen as the country faces a seemingly new or perhaps intensified onslaught of crime.
He went on to explain how implementing accredited standards in logistics business processes creates a business management system value stream which starts with customer requirements and moves through the various processes within a business to deliver the desired outputs. This stream should be in constant evaluation mode (under constant scrutiny) to ensure the business is always making improvements in its deliverables – and by definition, in its customers’ satisfaction and the bottom line.
And while there are standards that can be applied in every business, such as the ISO standards, when it comes to the logistics industry, Lashmar highlighted a few that are relevant to this market. These include ISO standards 9001, 14001 and others; TAPA standards such as Freight Security Requirements (FSR) and Transport Security Requirements (TSR); as well as C-TPAT (Customs-Trade Partnership Against Terrorism) and the British BSi standards.
Lashmar went on to describe these inter-national standards, focusing on ISO and TAPA. He stressed that, contrary to many beliefs, these standards are not a ‘ball and chain’ and definitely not a ‘one-size-fits-all’ template. Most importantly, he stressed that they were not something that should be implemented to keep auditors happy, but were key elements in the long-term success of a business.
Securing your cargo in the warehouse
Massimo Carelle, risk manager at Ingram Micro South Africa and a member of the TAPA South African Work Group Committee followed, narrowing the focus to standards and best practices associated with securing goods in a warehouse. Carelle used Ingram Micro as an example in his presentation, as the company has a large warehouse with a vast range of goods either in the warehouse or in the process of being delivered or collected. Many of these are wireless and mobile technologies which are very much in demand on the black market and are therefore high-risk products.
Carelle started by noting that risk management for a warehousing concern does not focus on the warehouse alone. You need to start at the perimeter and work your way in, ensuring you have optimal security at every level. He also noted that security depends on the correct processes and procedures, and most importantly, on people. You need to take your people on the security ride with you because without the buy-in from all levels of staff, your security will be vulnerable.
Starting at the perimeter, Carelle then highlighted a few crucial elements of warehouse security. He noted that visitors to Ingram Micro’s warehouse will find it quite a task to get into the premises. All visitors are stopped and searched before gaining entry, and they all need to produce an ID. Furthermore, they must have a host on site. Without these, they don’t get past the gate. Furthermore, everyone must identify themselves while onsite by wearing an employee card or visitor’s badge.
Documenting all access and recording the identity documents provided are also important. This must be done in a methodical manner to ensure there is an audit trail to follow if something happens. This means the scrappy old visitor’s book will not make the grade.
Other simple procedures that make a difference include strict control of all shipping documents, and training staff how to handle these documents correctly – including the gate guards who are the final level of security before goods leave the warehouse. He also advises regular cycle counts and keeping high-risk products, like cell phones that are easy to hide, out of easy reach.
When it comes to CCTV, companies must have good systems that deliver images that are usable. A blurred image does nobody any good. The cameras must also cover as much as possible and the footage must be stored for at least 30 days. The cost of an effective surveillance system is worth it, as opposed to the cost of a cheap system that does nothing to stop or resolve losses.
Finally, Carelle also stressed the importance of knowing who you hire. Criminal record and identity verification for every employee is critical. False documentation is easily available in South Africa (although Home Affairs is trying to resolve this) and if you don’t do your homework, you could easily give a criminal syndicate a safe foot in the door.
Security on the road
The final presentation was from Andre Du Venage, MD of Secure Logistics and chairman of the TAPA South African Work Group Committee. Du Venage focused on the task of securing goods in transit.
The realities of transporting goods on South African roads is a nightmare. The stock losses experienced are not the result of ad hoc crimes, but syndicate operations that include insiders and even police involvement in some instances. Even compared to the rest of Africa, South African roads are dangerous. And even when SAPS tries to do its best, the intelligence they have to work from is limited.
Du Venage explained that there are about 230 organised crime groups active in South Africa – according to SAPS – including about 32 transnational groups. It is estimated that cost to the government of these groups comes in at about US$23 billion per year. These syndicates are well organised and difficult to penetrate. More importantly, they are fluid and flexible and easily adapt to new ‘opportunities’.
Due to the good organisation within these syndicates, Du Venage says about 90% of truck hijackings and fraud are done with insider, primarily driver collusion. Less than 5% are actual violent hijackings. He went on to discuss the make-up of these organisations and how they operate in targeting goods in transit.
To mitigate the risks these groups present to transport companies, Du Venage says the risk management process starts at the interview. Like Carelle, Du Venage says you need to know who you are employing by running background checks on every employee. Following this, driver training is critical to ensure they know the standard operating procedures (SOPs) from when they get into the vehicle to when the goods are delivered.
Designing these SOPs is also important and every logistic company needs to ensure they follow best practices that have been proven to work in the field. While it is important to use the best technology available, he notes that the people aspect is a critical factor in successfully protecting your people, vehicles and the goods you transport.
In closing another successful Executive Breakfast event, Hi-Tech Security Solutions thanked TAPA and the presenters, as well as the sponsors for their support.
For more information, contact:
Andre Du Venage, Secure Logistics, +27 (0)11 391 6268, [email protected], www.securelogisticssa.co.za.
Massimo Carelle, Ingram Micro South Africa, +27 (0)11 928 8370, massimo.carelle@ingrammicro.com, www.ingrammicro.com.
Steven Lashmar, TÜV Rheinland Quality Services South Africa, +27 (0)12 667 7700, [email protected], www.tuv.com
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