Combating Loss Prevention in Rugged Industries

Businesses that operate in rugged industries know all too well just how common asset loss or misplacement is. Some may even argue that it’s inevitable. Others take a more proactive approach, refusing to accept a common occurrence as an expected one. Consider the various accomplishments of leaders across four equally harsh industrial sectors:

• Infrastructure management company ETS eliminated the possibility of loss or misplacement of tanks within mining operations for one of its largest customers. Result? $240,000 in annual savings. (Australia)
• Construction equipment supplier Bejac strengthened its risk management program to prevent the loss of construction attachments such as buckets. Result? $30,000 to $300,000 in savings per bucket. (U.S.)
• Industrial IBC and portable tank fabricator Intertank removed the possibility of misplacement for the thousands of tanks spread across its Zone 0 oil and gas environments. Result? $25,000 in savings from theft and loss prevention for their most popular tank models. (Brazil)
• Coast-to-coast access solutions company Northern Mat and Bridge overcame the challenges of large equipment rental to prevent loss in remote and sometimes impassible terrain. Result? Protection of bridges valued at $350,000 apiece. (Canada)

From accidental misplacement to organized theft, these are examples of companies with a substantial risk of losing their expensive and high earning assets, especially as each operates in remote locations with spotty cellular reception. More importantly, these are organizations that refuse to lose millions of dollars to preventable, asset-related causes.

Scoping the Problem

Since 2001, the National Equipment Register (NER) has developed databases of heavy equipment ownership and theft information. Working together with the National Insurance Crime Bureau (NICB), NER reports that annual estimates of the cost of equipment theft vary from about $300 million to $1 billion, with most estimates in the range of $400 million.

Unfortunately, investigating industry-specific challenges reveals additional losses, through lost productivity and the inevitable unplanned downtime that occurs due to the event. Take oil & gas for example. According to Kimberlite research, just 3.65 days of unplanned downtime a year can cost an oil and gas company $5.037 million. In the construction industry, the loss or theft of equipment such as excavators, skid steer loaders, and wheel loaders can bring projects to an immediate halt. Since less than 25% of stolen construction equipment is recovered each year, replacement costs are a significant piece of recovery.

Despite these challenges, the cross-industry leader snapshots described above demonstrate that the risk can be mitigated by asset tracking and management technologies, the driver of the cost savings identified in each scenario.

GPS Tracking: The Heart of Loss Prevention

Heavy equipment theft is a growing problem in the United States, and nearly 1,000 pieces of commercial equipment are reported stolen each month according to the National Crime Information Center (NCIC). Operational delays and staff productivity lulls caused by tracking mishaps also pose indirect costs that only add to the problem. Since their inception, GPS asset trackers have helped companies reduce equipment loss and misplacement, along with their related costs. But not all trackers are created equal; some give you better visibility than others.

For instance, Geoforce’s satellite-powered trackers offer global visibility, based on tracking and monitoring the movement and status of vehicles and assets throughout the supply chain, regardless of location. Field operations in rugged industries depend on this constant communication to track their assets in near real-time. This level of reliability far surpasses cellular-powered trackers that notoriously lose reception in secluded areas.

Strengthening Loss Prevention Tactics with Geofencing

Businesses of every size or model have something to gain from total asset visibility, but rugged industries often require more comprehensive tactics. The sheer magnitude and complexity of industrial sites can benefit from specific site boundaries and/or pre-defined zones for specific equipment.

An important part of a theft and loss prevention program, geofences ensure that equipment inventories are where you need them, when you need them. The Geoforce approach underscores the benefits that near real-time visibility, control, and automation deliver by triggering alerts, notifications, or automated actions based on geofencing parameters.

The result is a stronger theft prevention program that extends its lifecycle benefits to areas such as industry-specific compliance regulations, which often mandate asset use and movement in specific areas. See how your business can benefit from Geoforce by getting a quote today.