Businesses are evaluated by their ability to deliver products and services to their customers or clients in a timely fashion while maintaining a high level of service and remaining profitable.
The key components of businesses that allow them to deliver on these promises are their supply chains and business processes. Any disruption to the supply chain or business processes can cause a variety of issues (delays in material deliveries, delayed shipments, increased expenses, unhappy customers).
Unknown male is breaking into the yard of a client and is stealing precious metals at all hours of the night and early morning. The aluminum that is being stolen has significant value and is costing the company thousands of dollars each week. Additionally the ongoing theft is causing the employees to be concerned about their safety.
Cash flow is impacted, as additional metal must be purchased to meet production goals. The loss may have to be reported to an insurance carrier, which could cause a spike in premiums. Employee’s time will be spent viewing security camera footage and possibly being interviewed, which decreases production. The possibility of the theft being internal or coordinated by a vendor or partner must be addressed and investigated. Time and resources must be devoted to investigate and stop the theft.
According to an insurance research organization metal theft claims have risen by 36 percent since January of 2010.
In an article found in the Insurance Journal, according the NICB, “The damage caused by these thefts is often several times the value of the metal stolen, leaving the victims with hefty repair costs which are often passed on to insurance companies.”
The U.S. Department of Energy has estimated that metal theft costs U.S. Businesses around $1 billion a year.