Thefts within global supply chains have seen a significant increase, with food and drink products being among the most commonly stolen items. This rise in theft poses a considerable threat to food prices in 2023. According to the British Standards Institution’s (BSI) Supply Chain Risk Insights Report 2023, thefts from facilities have now surpassed cargo hijacking incidents as the leading cause of theft within supply chains.
The report reveals that thefts from hijackings have decreased from 24.4% to 17.0% of total thefts, while thefts from facilities have risen from 24.2% to 26.0%. This shift indicates a changing trend in supply chain theft. Notable theft incidents include the theft of branded shoes worth nearly £400,000 from a truck in South Lanarkshire and the theft of coffee machines valued at almost £300,000 from a warehouse in Birmingham.
The escalating thefts within global supply chains have raised concerns about the potential impact on food prices in the coming year. Susan Taylor Martin, CEO of the BSI, emphasizes the need for organizations to effectively manage their supply chain risks to thrive amidst the current volatility. The report also highlights five key imperatives for organizations to address, including leadership, digital risk management, self-knowledge, sector-specific challenges, and the adoption of new technologies like the metaverse.
Jim Yarbrough, Global Intelligence Program Manager at the BSI, warns that without proper intervention, businesses may experience significant financial impacts, potentially leading to further increases in food prices. To ensure supply chain continuity and mitigate risks, organizations need strong leadership commitment, effective management of digital risks, comprehensive understanding of their supply chain environment, tailored approaches to address sector-specific challenges, and the adoption of new technologies such as data analysis, the metaverse, and cybersecurity.
Managing supply chain risks and implementing proactive measures will be crucial for businesses to navigate the challenges and uncertainties ahead, safeguarding both their financial sustainability and the stability of global supply chains.