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  • Subject area(s): Marketing
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  • Published on: 14th September 2019
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Cargo crime can be distinguished into 3 elements namely motivated perpetrator, transported goods and lack of guardian (Sherman, Gartin & Buerger, 1989).  These elements have being identified to be present in all types of cargo crime.  The relationship among the 3 elements is very complex and changes in one of the element may prevent or defer crime from happening.  There are few different ideas, views or explanation related to the driving force and motivation that cause the crime to occur.  Crime can be linked to social process, human behaviour and other traits or factors where the pattern of crime can be of temporary and ecological factors (Parker, 1995).  The pattern of crime was expressed in a series of papers published by Felson and Clark (1998).  The volume and distribution of predatory crime against a person or a crime in which a criminal attempted to steal an object are closely related to the interaction of the 3 variables that is typical of a crime element found in America as illustrated in Figure 2.1.  The availability of suitable target for the criminal; the absence of guardian and the presence of motivated criminals are most likely causing the crime to take place (Teresa, 1999). The decision to commit crime is structured by an analysis of the type of crime, the time and place of crime, and the target of crime.  Criminals will shy away from committing the crime if they perceive it as difficult task or potentially risky for them to commit the crime (Garry & Don, 2001).  Evidence shows that jurisdiction with relatively low incarceration rates also experienced the highest crime rate (Rengert, 1989).  Crime can be avoided if potential targets are guarded securely, means or opportunities to commit crime are well controlled and potential targets are monitored closely.  This will convince potential criminals to abstain from committing the crime, delay their action or even avoid committing the crime. A supply chain consists of all parties involved, directly or indirectly, in fulfilling a customer request (Chopra & Meindl, 2010).  The supply chain includes not only the manufacturer and suppliers, but also transporters, warehouses, retailers and even customers themselves.  Within each organization, such as a manufacturer, the supply chain includes all functions involved in receiving and fulfilling a customer request.  These functions include, but are not limited to, new products development, marketing, operations, distributions, finances and customer services (Chopra & Meindl, 2010).  A supply chain activity is a dynamic process and involves the constant flow of information, product and funds between different stages.  At each stage, the supply chain is connected through the flow of products, information and funds.  These flows often occur in both directions and may be managed by one of the stages or an intermediary.  The objective of every supply chain is to maximize the overall value generated.  The value a supply chain generates is the difference between what the final product is worth to the customer and the costs of the supply chain incurs in fulfilling the customer's request.

Logistics or transportation is one of the activities within the supply chain and it refers to the movement of product or cargo from one location to another as it makes its way from the beginning of a supply chain to the customer.  Logistics is an important supply chain initiator and drivers because nowadays products are rarely manufactured and consumed in the same location or country and the industry is very dependent on the transportation to transfer the products.  Logistics is a significant component of the costs incurred by most supply chains.  In fact, logistics activities represented more than 10 percent of the Malaysia GDP (Kamal, 2012). The role of logistics is even more significant in global supply chains.  Transportation allows products to move across global network of a company.  Similarly, global logistics allows retailers to sell products manufactured all over the world to be sold in different countries.  International trade is becoming a bigger part of the world's economic activity today.  The Malaysian logistics industry grew 10.3 per cent to RM129.93 billion in 2012, a marked increase from an estimated RM117.8 billion in 2011(Kamal, 2012).  External trade for Malaysia increases by 5.9 per cent to RM1.42 trillion in 2012, compared with RM1.24 trillion in 2011 (Kamal, 2012).  The growth of Malaysia external trade signifies the growth of the transportation and logistics industry.  Gopal Ramasubramaniam (2012), Frost & Sullivan Vice President for transportation and logistics practice Asia Pacific and country head for Malaysia, said that Malaysia's strategic advantage is due to its geographical location and its focus on improving supply chain efficiency which also drives growth in the local logistics industry.  The Malaysian logistics industry is forecast to grow at a compound annual growth rate of 11.6 per cent and it will reach RM203.71 billion in 2016 (Gopal, 2012).

Any supply chain's success is closely linked to the appropriate use of a secured and safe transportation mode.  Supply chains also use responsive transportation for centralize inventories and operate with fewer facilities and this has created more activities within the logistics industries.  To understand logistics within the supply chain, it is important to consider the perspective of four mode of transportation namely locomotives/rail, trucks, airplane and ship.  Logistics network is just like a collection of nodes and links where transportation originates and ends at nodes and travels on links.  For most modes of transportation, infrastructure such as ports, roads, waterway and airports are required both at the nodes and links.  Most transportation infrastructure is being managed as a good and effective facility throughout the world.  It is very important that infrastructure being managed in such a way that goods can be transported for one location to another location safely.   

Many companies have not yet invested in improving security beyond the minimum level due to difficulty in justifying security investments (Pelleg, Gillai & Sept, 2006).  Companies may not yet see the benefits of enhanced security or may not be able to justify an adequate business case or needs for security implementation.  That is because penalties for non-compliance with new security standards are minimal or non-existent and the benefits are difficult to measure (Unisys, 2005).  However, supply chain security management is not a black hole and believed that secured supply chains do provide a return on investment for transportation and logistics companies.  Research has quantified the tangible business benefits of investing in supply chain security efforts.  Area positively influenced by security efforts includes supply chain visibility (50% increase in access to supply chain data, 30% increase in timeliness of shipping information), improvement in inventory management (14% reduction in excess inventory, 12% increase in reported on-time delivery), more efficient customs clearance processes (49% reduction in cargo delays, 48% reduction in cargo inspection or examination) and in the long-term benefitting the customer relationship (20% increase in new customers and 26% reduction in customer attrition (Blanchard, 2006).  Global trade is no longer just about moving cargoes quickly and efficiently, it is also about moving cargoes safely.  As many as 25 different parties are involved in the global movement of just one container of cargo (Russell & Saldanha, 2003).  The supply chain encompasses different representatives of buyers, sellers, inland freighters, shipping companies, intermediaries, financiers, governments and the list goes on.  With so many different supply chain operators involved, the risk of supply chain disruption and vulnerability to external intervention would increase.  One supply chain partner may have excellent internal security efforts but if others within the supply chain are lacking adequate security efforts, or if there isn't sufficient coordination between supply chain partners, those efforts may not be beneficial at all (Sheffi, 2001).  Supply chain security management needs to be encompassing and supported by all players within the supply chain.  Long term cooperation with supply chain partners is a very important first step, but securing the supply chain will require an even greater commitment.  It is believed that supply chain security strategy which is cross-institutional and international, including all players of the supply chain is absolutely necessary and critical.

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