Barry Brandman is president of Danbee Investigations, a Midland Park, N.J., company that provides investigative, loss prevention and security consulting services to many of the top names in the logistics industry. He has been a guest speaker for the Department of Homeland Security, CSCMP, and WERC, and is the author of Security Best Practices: Protecting Your Distribution Center From Inventory Theft, Fraud, Substance Abuse, Cybercrime and Terrorism. You can reach him via e-mail at
or (201) 652-5500.
The distributor was distraught. Month after month, inventory was disappearing from the premises, but his efforts to track down the perpetrators had gotten him nowhere. In desperation, he hired an undercover operative. A short time later, he got what he was looking for: The investigator filed a report with the names of two workers he'd observed stealing from their employer.
As the distributor found, undercover investigations can be an effective way to get at the source of problems in logistics operations. Not only can investigators identify thieves, but they can also uncover a host of other costly workplace problems, including on-the-job drug use and distribution, lax supervision, violations of company policies, product tampering, and—perhaps most worrisome of all—lapses in supply chain security.
Not all investigations prove to be as successful as the one described above, however. There have been plenty of cases of investigations that ended in disappointment. More often than not, it's because the company receiving the service or the investigation firm providing it made one (or more) of the following mistakes:
1. Failure to hire a qualified investigation company. What many don't realize is that there's a world of difference between hiring an out-of-uniform security officer and hiring a well-trained, experienced investigator. Make certain that you're working with a company that has a proven track record. Be wary of any firm that won't provide you with client references.
2. Letting too many people in on the secret. The more people who know about a covert investigation, the greater the odds of a leak. People should be brought into the loop only on a need-to-know basis. Two or three executives at most should receive the confidential reports.
3. Responding too hastily. Most executives like to take swift and decisive action. The minute they find out someone's been stealing from the company, they want to fire the offender and stop the bleeding. But that could actually be counterproductive. If management suddenly starts responding to problems that have dragged on for months or years, employees will become suspicious. It won't be long before they've figured out that you have an inside source and the investigation will be neutralized.
That's not to suggest that you should sit idly by while somebody robs you blind. Just make sure that when you do take action, you do it in a way that doesn't compromise the investigation. Above all, you want to deflect suspicion from the investigator. One way to do that is to establish an 800 tip line program for employees to report unethical or illegal activity. That way, when the crackdown comes, you can explain that you were responding to a tip, thereby shielding the real source of your information.
4. Not letting the investigation run its course. When it comes to undercover investigations, patience is a virtue. Better than 95 percent of the time, the first problem that an investigator uncovers isn't the only problem—or even the most significant problem—you have.
Take the case of the distributor mentioned above. When the vice president of operations learned the thieves' identity, his first impulse was to fire the perpetrators and end the investigation. However, we cautioned him to exercise restraint.
He agreed, and his patience was rewarded. As the investigation unfolded, it became clear that the two thieves were mere pilferers compared to some of their co-workers. The undercover operative was able to identify three other workers (one of whom was a longtime supervisor) who were conspiring to steal thousands of dollars worth of inventory a week. It also turned out that these employees were using cocaine on the job and selling it to co-workers. By agreeing to let the investigation run its course, the company not only had the satisfaction of catching the petty crooks but of shutting down the internal crime ring as well.
The number of container ships waiting outside U.S. East and Gulf Coast ports has swelled from just three vessels on Sunday to 54 on Thursday as a dockworker strike has swiftly halted bustling container traffic at some of the nation’s business facilities, according to analysis by Everstream Analytics.
As of Thursday morning, the two ports with the biggest traffic jams are Savannah (15 ships) and New York (14), followed by single-digit numbers at Mobile, Charleston, Houston, Philadelphia, Norfolk, Baltimore, and Miami, Everstream said.
The impact of that clogged flow of goods will depend on how long the strike lasts, analysts with Moody’s said. The firm’s Moody’s Analytics division estimates the strike will cause a daily hit to the U.S. economy of at least $500 million in the coming days. But that impact will jump to $2 billion per day if the strike persists for several weeks.
The immediate cost of the strike can be seen in rising surcharges and rerouting delays, which can be absorbed by most enterprise-scale companies but hit small and medium-sized businesses particularly hard, a report from Container xChange says.
“The timing of this strike is especially challenging as we are in our traditional peak season. While many pulled forward shipments earlier this year to mitigate risks, stockpiled inventories will only cushion businesses for so long. If the strike continues for an extended period, we could see significant strain on container availability and shipping schedules,” Christian Roeloffs, cofounder and CEO of Container xChange, said in a release.
“For small and medium-sized container traders, this could result in skyrocketing logistics costs and delays, making it harder to secure containers. The longer the disruption lasts, the more difficult it will be for these businesses to keep pace with market demands,” Roeloffs said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.
As the hours tick down toward a “seemingly imminent” strike by East Coast and Gulf Coast dockworkers, experts are warning that the impacts of that move would mushroom well-beyond the actual strike locations, causing prevalent shipping delays, container ship congestion, port congestion on West coast ports, and stranded freight.
However, a strike now seems “nearly unavoidable,” as no bargaining sessions are scheduled prior to the September 30 contract expiration between the International Longshoremen’s Association (ILA) and the U.S. Maritime Alliance (USMX) in their negotiations over wages and automation, according to the transportation law firm Scopelitis, Garvin, Light, Hanson & Feary.
The facilities affected would include some 45,000 port workers at 36 locations, including high-volume U.S. ports from Boston, New York / New Jersey, and Norfolk, to Savannah and Charleston, and down to New Orleans and Houston. With such widespread geography, a strike would likely lead to congestion from diverted traffic, as well as knock-on effects include the potential risk of increased freight rates and costly charges such as demurrage, detention, per diem, and dwell time fees on containers that may be slowed due to the congestion, according to an analysis by another transportation and logistics sector law firm, Benesch.
The weight of those combined blows means that many companies are already planning ways to minimize damage and recover quickly from the event. According to Scopelitis’ advice, mitigation measures could include: preparing for congestion on West coast ports, taking advantage of intermodal ground transportation where possible, looking for alternatives including air transport when necessary for urgent delivery, delaying shipping from East and Gulf coast ports until after the strike, and budgeting for increased freight and container fees.
Additional advice on softening the blow of a potential coastwide strike came from John Donigian, senior director of supply chain strategy at Moody’s. In a statement, he named six supply chain strategies for companies to consider: expedite certain shipments, reallocate existing inventory strategically, lock in alternative capacity with trucking and rail providers , communicate transparently with stakeholders to set realistic expectations for delivery timelines, shift sourcing to regional suppliers if possible, and utilize drop shipping to maintain sales.