LOJACK
SUPPLY CHAIN
INTEGRITY
®
Solving the Commercial On-Highway Theft Problem
for Cargo, Trucks and Trailers
TABLE OF CONTENTS
OVERVIEW.....................................................................................................
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Securing the Supply Chain: Evolving Solutions to Meet Today’s Needs....................................................
Uniquely Qualified to Lead the Emerging Commercial On-Highway Security Market..............................
LoJack SCI InTransit™ – A Comprehensive, Innovative Solution...............................................................
The Right Technology for the Right Application..............................................................................................
• Covert protection and tracking..............................................................................................
• Real-time surveillance and web-based monitoring...........................................................
• Integration with law enforcement for dispatch and recovery..........................................
The Wisdom of Sharing Intelligence.................................................................................................................
Support...................................................................................................................................................................
Standing Apart from the Crowd & Contact Information.................................................................................
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OVERVIEW
A recent survey by Chubb Group Insurance Companies revealed that
broken links in the supply chain are one of the top three threats to business
operations—and one of the most significant ‘breaks’ in the supply chain is
theft. In the cargo security market, it is estimated that $10 billion—$30 billion
in merchandise alone is stolen from cargo ships, trucks, ports, railroads
and highways annually in the U.S. And, according to the Transported Asset
Protection Association (TAPA), 85 percent of all business security losses are
attributed to either the theft or loss of product in transit.
These facts were echoed in the first annual Cargo Theft Study* conducted by
LoJack Supply Chain Integrity (LoJack SCI). The study, which was released
in April 2009, revealed that cargo theft is a serious, ongoing problem that is
extremely profitable for professional thieves and very costly for organizations
throughout the supply chain. According to
the study, of the 353 incidents reported
in 2008, 299 of them involved cargo
theft on our nation’s highways. Of the
353 reported incidents, 145 provided a
dollar figure. The total reported losses
amounted to nearly $51 million dollars
($50,821,224) or more than $350,000
per incident.
According to LoJack
SCI’s 2008 Cargo
Theft Study, companies
reported an average
Often, stealing cargo is only one
component of theft. The trucks and
trailers transporting cargo are also
vulnerable. For example, in one recent
incident, a tractor-trailer containing
a load of 12 pallets of Owens Corning
shingles bound for Houston was hijacked
in Dallas. The tractor, trailer and cargo all were stolen. According to industry
officials, the combination of truck and cargo theft is responsible for more than
$10 billion in business losses each year. Clearly, adding truck theft losses
to that of merchandise makes the growing problem of Commercial OnHighway Security that much greater. Add in the theft of trailers and the
numbers climb even higher. Although there is no hard data on overall
recoveries, anecdotal information indicates that the percentage
of recovered stolen property is very low.
loss of $350,000
per incident.
With so much valuable property at risk and at stake in the Commercial
On-Highway Market,** it is becoming an increasing priority for businesses
to find new, effective measures to ensure the security of cargo, trucks and
trailers and—even more important—to recover those assets in the event
that theft occurs.
Securing the Supply Chain: Evolving Solutions to Meet Today’s Needs
Back in the days when technology wasn’t available to provide immediate
access to information, supply chain security was limited to physical barriers like,
locks, seals, fences and guard gates, uniformed guards at entrances and limited
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surveillance equipment, such as video cameras. These measures were set up
to protect production, warehouse, distribution and transportation facilities. They
may have been effective while cargoes were confined, but once the assets left
the protected areas, they became vulnerable to something as simple as a pair
of bolt cutters, but specifically to organized thieves who found cargo theft a
“low risk, high reward” crime.
As mobile communications, technology and web-based solutions became
more prevalent in the supply chain, many companies made investments in
fleet management systems in an attempt to protect their fleets and cargoes.
However, most fleet management systems provided GPS-based features that
focused on operations, maintenance and maximizing equipment utilization—
but did not protect cargoes from theft. Some solutions did provide the ability
to access real-time location of equipment within a limited geographic range.
While this type of solution may help to run and maintain an efficient fleet, it did
not—and still does not—adequately address the problem of theft protection.
And, the theft problem
continues to grow each
year. From 2007 to 2008,
claims at the Chubb
Group*** showed that
incidents of on-highway
theft increased 40 percent, reinforcing the fact that fleet management and fleet
protection are two separate efforts that require different solutions.
In today’s world, with increasing incidents of theft, the ongoing threat of terror
and seemingly more frequent natural disasters, there is an increasingly critical
need for solutions that truly protect the integrity of the supply chain—solutions
that go beyond fleet management and even fleet protection, to include not only
fleet, but cargo recovery as well. LoJack SCI’s primary mission is to deliver
powerful, effective solutions that address the needs of businesses operating
in today’s vulnerable supply chain, providing valuable information, resources,
protection and recovery.
Uniquely Qualified to Lead the Emerging Commercial On-Highway Security Market
Founded in 2004 as Supply Chain Integrity, today LoJack Supply Chain
Integrity is the only company that provides a truly integrated solution for supply
chain protection—from covert tracking, monitoring and recovery to investigation
and prevention.
In 2006, LoJack Corporation (NASDAQ:LOJN), the premier worldwide
provider of tracking and recovery systems, made a strategic investment
in Supply Chain Integrity and two years later became a majority shareholder.
This investment brought LoJack’s resources, recovery expertise, trusted brand
and especially important, its law enforcement relationships, to this innovative,
emerging company—creating LoJack SCI. Today, LoJack SCI’s flagship solution,
LoJack SCI InTransit, has emerged as a powerful result of the union of the
two companies.
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LoJack SCI InTransit—A Comprehensive, Innovative Solution
LoJack SCI InTransit is a comprehensive, innovative solution for the emerging
Commercial On-Highway Security Market that provides the technology,
intelligence and support needed to create a visible, secure and reliable supply
chain operation.
The Right Technology for the Right Application:
LoJack SCI InTransit is a multi-faceted solution that integrates the right
technology, whether it’s GPS, Assisted GPS, Cellular (CDMA and GSM) and
integration with Radio Frequency, into the right application to deliver the most
advanced features available for:
• Covert protection and tracking
• Real-time surveillance and web-based monitoring
• Integration with law enforcement for dispatch and recovery
GPS
CELLULAR
RADIO
Covert Protection and Tracking
Not only does LoJack InTransit integrate the right technology into the right
application, it leverages the LoJack Stolen Vehicle Recovery System, which
adds an unprecedented layer of protection for trucks and trailers. Since most
theft occurs while the driver is out of the truck at an unsecured location, having
a tracking device hidden in the cargo as well as on the truck and trailer, gives
the driver the freedom to stop at a rest area or truck stop knowing that his
entire rig is protected. It’s like
having your own personal covert
surveillance team to keep watch
on your cargo and tractor-trailer—
without incurring the expense that
type of solution requires.
For cargo, the state-of-theart tracking technology—that
supports two tracking platforms
(CDMA and GSM)—with
motion sensor and Radio
Frequency integration is hidden
within the cargo. The flagship
device is small enough to be
easily concealed, robust enough to help recover your cargo if stolen. Battery
performance is optimized through our exclusive device management software,
which enables the most efficient use of device and battery life for the entire
logistics cycle. LoJack InTransit can customize the appearance of the unit
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to blend in with cargo—making the device that much more difficult to detect.
Coverage is currently available in the United States, Canada and Mexico.
For trucks, the LoJack Stolen Vehicle Recovery System uses patented Radio
Frequency-based technology that has a special FCC-allocated frequency
and operates on a 12V or 24V power source. It contains an internal backup
battery and can be installed on
tractor-trailers, straight trucks box
trucks, vans, service trucks and
commercial auto fleets.
For trailers, there is a covert
LoJack device specifically
designed for untethered trailers
that is self-contained with a longlife battery. No external power
source is required and it can
be installed on approved trailer
models, including box trailers,
flatbed trailers, lowboy trailers and dump trailers. There is a special device
available for refrigerated trailer units.
Protection and tracking entails far more than simply installing covert devices
on the cargo, truck and trailer. What distinguishes LoJack SCI from the
competition is its experience and expertise with technology solutions for realtime surveillance and web-based monitoring.
Real-Time Surveillance and Web-based Monitoring
LoJack SCI’s monitoring software is the most feature-rich and adaptable mobile
asset monitoring application available. LoJack SCI developers customize its
applications to quickly, accurately, and cost-effectively fulfill the unique needs
of customers. The intuitive
web-based interface also
enables customers to tailor
tracking tools to match
their precise requirements,
maintain constant surveillance
and control fast-developing
situations. The monitoring
application uses Microsoft
Virtual Earth, which provides a number of views of the cargo while in transit
including map and aerial satellite views to know where the cargo is at all
times. The software enables a user to see where a truck has stopped and also
provides a view of the surrounding terrain.
There are three different types of virtual fences available for surveillance
and monitoring:
Geo Fence can be used to specify a “High Risk Zone” in locations known
to be dangerous. When a truck enters the zone, the frequency of reports
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generated can be increased and text or email alerts can be sent indicating the
time entering the zone and the time departing it.
Route Fence indicates the approved route for the load to travel. Text or email
alerts can be sent indicating entry to and exit from the Route Fence, and frequency
of reports can be increased if the truck bearing the cargo leaves the fence.
Location Fence can show the origin, destination and “Safe Zone,” i.e.:
secured yard for the cargo. Text or email alerts can be sent indicating the
cargo is leaving its origin, entering and leaving the “Safe Zone” and arriving
at its destination.
Other alerts are also available that monitor the status and condition of cargo in
transit, including Stationary, Distance to Destination and Arrival.
Customers may have their own monitoring personnel or may use the LoJack
SCI Monitoring Center, which provides advanced monitoring services. The
Center is staffed by highly skilled professionals and is available 24/7/365 to
provide world-class monitoring and device management support.
For example, the leading provider of less-than and full-truckload services is
respected and trusted by many shippers, including global airlines and freight
forwarders to transport their goods expeditiously and safely between California
and Florida. This transportation company provides a guaranteed 56-Hour
Turnaround Commitment to its customers for the delivery of their goods. To
ensure the guarantee delivery, the company utilizes the resources of the LoJack
SCI Monitoring Center for constant surveillance of its trucks, evaluating all
en route circumstances related to their defined security protocols and offers
logistical adjustments as necessary to make certain it is able to fulfill its
turnaround promise—and hence retain its leadership position.
The LoJack SCI Monitoring Center also is the focal point for responding,
validating and dispatching the appropriate law enforcement or investigative
agencies based on customers’ established protocols.
Integration with Law Enforcement for Dispatch and Recovery
A Key Differentiator: LoJack SCI is the only company in the emerging
Commercial On-Highway Security Market that has the benefit of LoJack
Corporation’s unique and longstanding relationship with law
enforcement agencies throughout
the U.S. Plus, LoJack SCI has
developed its own extensive
multi-agency law enforcement
database and recovery network
that complements LoJack’s existing
relationships and includes cargo
task forces, state and local law enforcement agencies and private investigators,
as well as LoJack law enforcement liaisons. The combination of these two
resources creates a formidable asset that no other company can duplicate.
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For reported cargo theft: as soon as LoJack SCI receives a theft alert pertaining
to cargo or a disruption in the supply chain, a specialist in the Monitoring
Center notifies an appropriate department in its network of law enforcement
agencies to handle the process of tracking and recovery.
For reported truck or trailer theft: to expedite activation and tracking of a truck
or trailer that has been reported stolen, the LoJack Stolen Vehicle Recovery
System’s software and databases are directly integrated with each state’s
crime computers. Police enter the report and the identification number is
matched to the LoJack System registration number. After the match, the LoJack
System is activated by police, which causes the small, hidden radio transceiver
in the truck or trailer to emit a silent, continuous Radio Frequency signal.
LoJack’s Police Tracking Computers (PTCs) are installed in law enforcement
vehicles, helicopters and fixed-wing aircraft to optimize tracking and recovery.
Through the PTCs, the stolen asset communicates its whereabouts to
authorities in real-time via the signal that is emitted from the hidden transceiver.
This vehicle-to-vehicle communication delivers unprecedented precision in
“last mile” tracking, which is optimal for recovery.
Plus, LoJack has a distinctive staff of law enforcement liaisons, all former police
officers with a specialization in vehicle theft prevention that work directly with
LoJack SCI and law enforcement agencies in the fight against theft. Many law
enforcement professionals acknowledge this as the optimal method for the
recovery of trucks, trailers, and now, cargo.
Recently, a well-known cosmetics company placed two LoJack SCI InTransit
tracking devices in its 19-pallet shipment that was being transported from
Chicago to Miami. The cargo, valued at more than $150,000, was stolen en
route. Within approximately 24 hours of being notified of the theft, LoJack SCI
monitoring specialists were able to provide law enforcement with the location
of the cargo. The load was found within 30 feet of where the tracking device
indicated it would be. Law enforcement was able to recover the cargo and
identified a suspect who was placed under arrest.
In another instance, gunmen drove into a truck terminal, stole a tractor-trailer
loaded with a shipment of tobacco valued at $1,000,000, crashed through the
gates and escaped. The LoJack SCI Monitoring Center was notified of the heist
“Approximately forty-five minutes later, law
enforcement located the tractor-trailer ...”
and within minutes was able to contact local law enforcement with the location
of the tractor-trailer. Approximately forty-five minutes later, law enforcement
located the tractor-trailer and was able to return it to the terminal. After an
investigation, four suspects were arrested for the theft.
LoJack SCI InTransit provides the covert tracking and monitoring solution that
actually recovers stolen cargo. It also provides intangible benefits, including
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helping law enforcement fight the problem of cargo theft—which aids police in
combating organized crime rings and getting wanted criminals off the streets.
But most important, LoJack SCI InTransit helps protect both the supply chain
and a company’s bottom line.
As an added incentive, insurance companies have recognized the positive
impact that their insured customers’ investments in supply chain security
and transportation asset protection solutions have on their overall risk
profile. In most cases, the insured customers who make these investments
can expect consideration from their insurer for loss deductible waivers and
positive underwriting, which could lower their annual insurance rates. LoJack
has specific programs with several insurance companies, including Chubb,
Hanover, Liberty Mutual and Progressive.
The Wisdom of Sharing Intelligence
The 9/11 Commission Report stated that there is a heightened need to move
from a “need to know” to a “need to share” mindset. LoJack SCI is fulfilling that
“need to share” through its Supply Chain Information Sharing Analysis
Center (SC-ISAC), which provides an extensive, diverse community of
customer members from private industry to law enforcement with a platform
to report information and combat supply chain threats. SC-ISAC is one of 11
existing ISACs that were instituted as part of a presidential decision directive
under both the Clinton and Bush administrations to provide information critical
for the safety of the infrastructure in the U.S. SC-ISAC aggregates intelligence
not only from its members, but from the 10 other ISACs, as well as the
Department of Homeland Security. It serves as the information sharing source
that captures, analyzes and disseminates historical incident and case data on
threats and vulnerabilities in the supply chain, including cargo theft, product
diversion, and counterfeit cases. SC-ISAC provides actionable information to
government, law enforcement and its private sector members and plays a vital
role in bringing together cross industry organizations that contribute to the
protection of the national infrastructure. The world’s leading manufacturing,
logistics and retail corporations are among the many member companies using
SC-ISAC—and LoJack SCI’s solutions.
At the end of 2008, SC-ISAC had more than 1,500 users from nearly 600
organizations—a number that is increasing rapidly. The value that SC-ISAC
provides continues to grow with each additional contributing member.
As detailed earlier, LoJack SCI published its first annual Cargo Theft Study
report based on information from SC-ISAC and will continue to issue these
reports to the public at large annually and to members quarterly to provide the
industry with important statistics and trend information.
Membership in SC-ISAC provides benefits that cannot be found elsewhere,
including:
• Alerts: Immediate notification of potential threats to the supply chain
as they occur; available information on terrorist threats and natural
catastrophes that could impact a member’s interests
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• Bulletins: Twice Weekly
news, advisories, incidents,
events affecting the supply
chain; industry-specific bulletins
regarding counterfeiting, in-transit
cargo theft and illegal diversion
that will help in an individual
organization’s investigation,
recovery and prevention efforts
• Situational Awareness: Up-to-date information including live maps
and data feeds on external situations that could potentially disrupt and
threaten the supply chain
• Events: Upcoming tradeshows, conferences, seminars, and other
educational, networking, and collaborating opportunities that impact
the supply chain across a broad spectrum of industries
• Advisories: Updates as they occur on government regulation and
compliance requirements and strategies
LoJack SCI’s foresight and understanding of the market need for sharing
information were catalysts for the development of SC-ISAC—and one more
example of how the company stands apart from the competition.
Support
LoJack SCI offers a wide range of support both as part of LoJack SCI InTransit
and as stand-alone services. Clearly the most notable support within LoJack
SCI InTransit is provided by the company’s relationship with law enforcement,
which includes Cargo Task Forces, state and local law enforcement agencies,
private investigators, as well as LoJack Corporation’s law enforcement liaisons.
LoJack SCI also provides implementation support for its InTransit customers,
which can encompass solutions such as asset protection, consultancy and
incident and case management.
LoJack SCI’s support extends to its sales team who can offer prospective
customers the opportunity to experience the capabilities and value of its
solutions through its Pilot Programs. The sales team also works closely with
customers to tailor buying and leasing options to meet exact requirements that
balance security and business needs.
Standing Apart from the Crowd
Balancing security and business needs is indeed a challenge in today’s world.
In fact, maximizing efficiencies and minimizing risks—particularly in the supply
chain—are essential for an enterprise’s bottom line performance. No other
company provides an integrated solution like LoJack SCI. LoJack SCI has
the right management, partners and technology—plus the power of LoJack’s
core technology, resources and law enforcement connection—to deliver a
comprehensive Commercial On-Highway Security solution that protects assets
in the supply chain and ultimately impacts profitability.
For more information, visit www.lojacksci.com or call (800) 616-8581.
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*The LoJack SCI Theft Study was based on information the company
collected and analyzed in 2008 from members of its Supply ChainInformation Sharing and Analysis Center (SC-ISAC), the only source
for information and analysis sanctioned by the government that helps
the supply chain community and law enforcement protect the supply chain
from illegal and disruptive activities.
**On-Highway Market includes truck stops, rest areas and other scheduled
stops en route
***Chubb North American Cargo Theft 2008 Annual Recap
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For more information, visit www.lojacksci.com or call (800) 616-8581.
© 2009 Supply Chain Integrity, Inc. All rights reserved. 126 East Highway 80, Suite 110, Forney, TX 75126