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In a new whitepaper from Vogue Business and logistics fulfilment provider GXO, we evaluate the security risks that high-end brands encounter throughout the supply chain, from theft to fraud. High-value goods have become an increasing target for crime, with perpetrators becoming more sophisticated in their methods. High-profile loss scenarios, such as cargo theft, are a global problem, while the US Transported Asset Protection Association reported that €19.2 million worth of goods were stolen in transit in September alone in the EMEA (Europe, the Middle East and Africa) region.
This essential report looks at data from several trusted agents across retail and authentication, including the National Retail Federation and anti-fraud specialist Ravelin, as well as case examples from companies like Richemont, providing a comprehensive understanding of the security challenges throughout the supply chain and the innovative tools that brands and retailers can leverage to tackle them. Meanwhile, logistics specialist GXO offers expert advice and recommendations on how to design processes and spaces such as warehousing facilities for maximum security while maintaining the efficiency and experience expected from high-end brands.
Hard luxury items, such as jewellery and watches, are particularly susceptible to targeted crime, but also come with more complex considerations when planning supply chain processes, often requiring higher insurance premiums, designated warehouse zones and even specially trained personnel. ‘Friendly fraud’, when customers pretend a safely delivered parcel hasn’t arrived, or return used or counterfeit products to retailers, is also on the rise.
Technology can help to mitigate some of these challenges — for example, detecting fraudulent card activity early on, or reducing the labour required to identify signs of counterfeit goods. Though luxury goods often require a high touch service, which takes expert partners and specialised knowledge to ensure that more intensive approaches to implementing security measures do not negatively impact the customer experience or taint brand perception. GXO’s loss prevention strategy relies heavily on data-driven approaches, utilising technology and automation to monitor inventory, identify risks and minimise losses across their warehouse and distribution operations, with a strong focus on employee training to combat shrinkage.
Jamie Saucedo, SVP of business operations at GXO, says: “Your fraud review process must be equipped to scale in real time when order volume increases with seasonal and promotional spikes. And your carrier partnerships should maintain the level of quality and secure practices on your busiest day of the year as they do on your slowest.” As retailers and brands continue to seek innovative solutions to improve security and mitigate losses, minimising the impact on customer experience remains paramount.
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