Executive Briefings

UK Retailers Note Supply Chain Vulnerable to Fraudulent 'Goods Lost in Transit' Claims

UK retailers lost more than £400m ($603m) last year as a result of fraudulent "goods lost in transit" (GLIT), with the average cost estimated at over £40, or about $60. Now, 90 percent of retailers believe growing numbers of fake GLIT claims pose a serious threat. This is an ongoing problem and highlights a new form of theft: "digital shoplifting".

Many retailers are shrugging GLIT off as a cost of doing business, yet with e-commerce and m-commerce growing at their current rates, it needs to be tackled.

The British Retail Consortium estimated the total cost of retail crime was £1.6bn ($2.4bn) in 2012. How can retailers tackle this modern digital problem in the same way that cameras and security tags help control in-store theft?

Finding a solution comes down to establishing proof of delivery and traceability. Proving a delivery took place without a signature or if a tracking system is slow, is virtually impossible.

Retailers exercise goodwill over GLIT queries because they lack the right information. With a real-time track-and-trace solution, they can verify delivery status and deal with fraudsters accordingly. For example, it creates a customer services dilemma when someone signs for a package such as for an iPod, and then claims it never arrived because they put it somewhere and then forgot.

Although there is evidence that something was signed for, you can't prove exactly what happened. This situation happens frequently and many service-focused retailers will follow the "customer is always right" mantra rather than risk alienation.

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Many retailers are shrugging GLIT off as a cost of doing business, yet with e-commerce and m-commerce growing at their current rates, it needs to be tackled.

The British Retail Consortium estimated the total cost of retail crime was £1.6bn ($2.4bn) in 2012. How can retailers tackle this modern digital problem in the same way that cameras and security tags help control in-store theft?

Finding a solution comes down to establishing proof of delivery and traceability. Proving a delivery took place without a signature or if a tracking system is slow, is virtually impossible.

Retailers exercise goodwill over GLIT queries because they lack the right information. With a real-time track-and-trace solution, they can verify delivery status and deal with fraudsters accordingly. For example, it creates a customer services dilemma when someone signs for a package such as for an iPod, and then claims it never arrived because they put it somewhere and then forgot.

Although there is evidence that something was signed for, you can't prove exactly what happened. This situation happens frequently and many service-focused retailers will follow the "customer is always right" mantra rather than risk alienation.

Read Full Article