Supply chain security: the hidden risks between handoffs

Author

GardaWorld Security

security guard inspecting merchandise truck in supply chain

As global supply chains face growing geopolitical and economic uncertainty, protecting goods throughout their journey has become an important part of building resilience. Yet some of the most significant security vulnerabilities are not necessarily where businesses expect them to be.

This was one of the issues raised during the Navigating Resilient Supply Chains in an Era of Global Disruption panel, held on October 22 as part of the IEFA Toronto Global Forum. Bringing together leaders and experts from different sectors, the discussion explored how international cooperation, industrial policy and strategic planning can help strengthen the resilience of critical supply chains.

During the panel, Amir Atri, GardaWorld Security’s Vice President for Western, Central and Atlantic Canada, brought a security perspective to the discussion. He examined emerging cargo theft trends and underscored key vulnerabilities across three critical environments: ports, warehouses and manufacturing facilities.

Where security vulnerabilities begin

According to Amir, some of the most significant security vulnerabilities arise during cargo handoffs and transfers of responsibility.

“At ports, the greatest security risks and vulnerabilities arise during cargo transfers, from ship to terminal and from terminal to truck.”

He identified fraudulent documentation and driver impersonation as common tactics used to gain unauthorized access to shipments. Once a truck leaves the terminal, tracking the cargo becomes much more difficult, and it may take days before a discrepancy is discovered.

The same type of vulnerability exists in warehouses, although Amir noted that incidents can unfold more quickly: “In warehouses, it's very similar, but it's faster.” He described recurring cases in which individuals impersonate authorized personnel, bypass security measures, enter facilities and leave with shipments. Without daily inventory checks, these losses can go undetected for months.

Manufacturing facilities present another type of risk: insider threats. Amir emphasized the importance of having the right people in place and conducting proper background checks to help address vulnerabilities that may come from within an organization.

Cargo theft is becoming more sophisticated and targeted

Amir identified two major trends shaping the current threat landscape: the growing sophistication of cargo theft operations and the increasing use of cyber tactics to bypass security measures.

Cargo thieves are becoming increasingly sophisticated and organized. While the number of cargo thefts has not risen at the same rate as their financial cost, the overall value of stolen cargo has increased significantly. As Amir explained, “The number of thefts hasn't moved up as comparatively to the cost of it He clarified that this is not simply because goods have become more expensive. Criminals are deliberately targeting higher-value shipments, pointing to a more calculated and coordinated approach to cargo theft.

The second trend is the growing use of cyber tactics to circumvent security measures. As Amir explained, criminals are increasingly using cyber methods alongside physical security breaches. He gave examples of how criminals can “change the routes on a truck, understand which shipments hold what, and essentially target those.”

Together, these two trends point to a more complex threat landscape, where criminals are becoming more selective in their targets and using different methods to get around security measures.

Technology cannot replace the human element

While technology plays an increasingly important role in today's security environment, Amir stressed that the people responsible for physical security operations are often overlooked.

“Technology sets the ceiling. The people operating these locations from a physical security standpoint are the most underrated.”

He explained that security is still often treated as a cost item, with organizations looking for the cheapest and fastest service available. However, he emphasized the importance of choosing a reputable security provider, particularly as some agencies increasingly rely on independent contractors rather than their own employees.

This can create serious concerns around accountability and insurance coverage if an incident occurs, especially when contractors are paid in cash and may not have the coverage required under the contract.

For Amir, having the right people in place means ensuring they are properly selected, trained and supported. Background checks and reference checks should also continue throughout employment, not just at the hiring stage.

As he put it, “The cheaper the security you have, the weaker the point you have within the system.” In other words, underinvesting in security can leave an organization more vulnerable.

Technology plays a critical role in today's security operations, but its effectiveness also depends on the people behind it. Someone still needs to respond to an alarm and recognize when something is wrong on a camera. As Amir pointed out, “You can have the best camera security systems or controls in place, but if you don't have the right people who are trained and suitable, that certainly creates a challenge.”

Strengthen your supply chain security

Every operation faces its own security challenges. Speak with a GardaWorld security expert to discuss your organization’s needs and explore an approach tailored to your facilities, transportation activities and operational requirements.

Speak with a supply chain security expert