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

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

July 17, 2013
Supply Chain Digital

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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Business Strategy Alignment Regulation & Compliance Supply Chain Security & Risk Mgmt Consumer Packaged Goods Food & Beverage Retail
KEYWORDS Business Strategy Alignment consumer packaged goods Delivery Confirmation Food and Beverage Fraudulent Claims logistics management Regulation & Compliance Retail Retail Theft SC Security & Risk Mgmt SCM IT Supply Chain Digital Supply Chain Management Supply Chain Management: Supply Chain Security & Risk Management
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