A few days from now, a national database of truck theft information will be launched and introduced to the United States for the first time. The National Insurance Crime Bureau (NICB) and ISO (an insurance data provider) have teamed up to create CargoNet, an information system that will combine data from multiple sources regarding truck theft (1). Currently, there is no system that can produce the results CargoNet will be able to. Some say truck theft is a three billion dollar a year problem, where others say it can be up to thirty billion dollars a year. The problem with truck theft is simple: lack of information. The lack of a database that combines a detailed account of truck theft is why this has become a multiple billion dollar a year problem.
According to the managing director of ISO, "CargoNet will connect multiple data sources, so we'll get away from the fragmentation of having information in multiple databases and e-mails floating around from one task force to another” (2). This statement is crucial, because with the innovation of information technology, CargoNet can serve a purpose similar to an Enterprise Resource Planning (ERP). According to our textbook, an ERP is a collection of integrated software (3). An ERP combines all software and technology from a company, and its purpose is to provide the flow of information throughout a company. CargoNet is similar to this idea of a continuous information flow because all the data will be conveniently in one place instead of scattered in various places (4). Combining the information regarding truck theft and being able to locate it in one source will not only reduce the number of thefts that occur in a year, but also reduce costs that companies experience from loss of stolen goods.
According to the National Database, “CargoNet will collect up to 257 fields of data detailing everything from destination, plate number and carrier, to the time, data and location of the theft, to serial numbers and other identifying detail on the stolen goods” (5). This abundance of information in one location will not only help law enforcement, insurance companies, and the companies whose goods are on the truck, but will also benefit the customers. Customers will feel confident in purchasing goods in a store, rather than feeling the skepticism caused by someone who may be selling the item for a cheaper price on EBay. The number of goods stolen in the United States will decrease and companies will begin to feel control over the risk of loss that they may have previously experienced. Currently, truck and auto theft is the most costly property crime in the United States (6). With the current state of the economy, both customers and consumers cannot afford the cost of theft, therefore the implementation of CargoNet could not have come at a better time.
See Article:
“National Database Tracks Truck Theft” Information Week, January 26, 2010, http://www.informationweek.com/news/storage/systems/showArticle.jhtml?articleID=222500169 (accessed January 30, 2010).
References:
(1) “National Database Tracks Truck Theft” Information Week, January 26, 2010, http://www.informationweek.com/news/storage/systems/showArticle.jhtml?articleID=222500169 (accessed January 30, 2010).
(2) “National Database Tracks Truck Theft” Information Week, January 26, 2010, http://www.informationweek.com/news/storage/systems/showArticle.jhtml?articleID=222500169 (accessed January 30, 2010).
(3) Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 7th ed. (New York: McGraw-Hill, 2008), 80.
(4) Stephen Haag and Maeve Cummings, Management Information Systems for the Information Age, 7th ed. (New York: McGraw-Hill, 2008), 82.
(5) “National Database Tracks Truck Theft” Information Week, January 26, 2010, http://www.informationweek.com/news/storage/systems/showArticle.jhtml?articleID=222500169 (accessed January 30, 2010).
(6) “Orange County District Attorney's Office” The Sheriff’s Blogger, August 26, 2009, http://capistranoinsider.typepad.com/the_sheriffs_blogger/2009/08/oc-task-force-nails-trucktheft-ring.html (accessed January 30, 2010).
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I believe that the implementation of CargoNet will definitely be an asset to the trucking industry. It is true that theft will decrease with an increased amount of collected information. The reason for this is criminals realizing that a new technology will allow law enforcement to find stolen vehicles in a more efficient manner. I think it is important to note that with an increased amount of information there is a greater sense of security. With greater security come better risk management and more productivity for trucking companies since fewer trucks will be stolen.
ReplyDeleteAfter reading that truck and auto theft is the most costly crime in the United States (something that I was not aware of before), I definitely think that after CargoNet is installed, companies will begin to see results immediately. There is no doubt that this database was a smart move, especially coming out of the troubling economic times that we have experienced over the past couple of years. Consumers are going to be much more cautious of where they invest their money, and if they are aware that the security backing the auto and trucking industry is extremely up to date and efficient, they will be more likely to make purchases. Overall, this new system (although it may be costly) will ultimately end up saving the industry from theft due to lack of security.
ReplyDeleteIt is shocking to see that truck theft is such a huge problem in the United States. I would never guess that truck theft amounted to such a huge sum, a sum of three billion dollars! I think that the CargoNet system sounds like it will positively effect the trucking business and decrease truck theft. If the major problem is defined as a lack of information, CargoNet will eliminate, or at least decrease, this problem by creating an integrated system that makes it easier for companies to gain information. By allowing clients to have confidence in the system, truck companies will be able to retain customers and potentially increase sales.
ReplyDeleteAfter reading the article I too was surprised to see that truck theft was such a large problem in the US. I always figured they were too big and too hard to hide to fall victim to theft. As Janie says, “If the major problem is defined as a lack of information, CargoNet will eliminate, or at least decrease, this problem by creating an integrated system that makes it easier for companies to gain information." The more information that is available to companies and police authorities, the more we will be able to reduce this problem in the United States. If people in the shipping industry feel more confident about the safety of their goods, they will use the mode of transportation more. This will increase jobs, as more truck drivers and more truck mechanics will be needed. I think CargoNet will be a huge asset to the trucking industry.
ReplyDeleteThis article provides perspective on a very interesting issue, and one which is not commonly discussed or considered. I was unaware that trck theft was a significant issue, and was surprised to find that it costs businesses billions of dollars each year. The consolidation and effective communication of information is crucial to the solution of this problem, a point which this article clearly states. When information is accessible, communication is greatly improved, providing less opportunity for truck theft. This article presents the trucking industry as an example, successfully presenting the larger issue of the importance of information consolidation and communication.
ReplyDeleteI was surprised to find out what a large problem truck theft is in the United States, however, because of the severity of the issue I think implementing this system is crucial. I believe CargoNet will have drastic results on the industry. Through the collaboration of all the data authorities will have an easier time tracking criminals and consumers will feel more secure in their purchases. Additionally, this database of informaion will prove to be extremely helpful for individual companies. I think it is very important that these companies will have all the information about the crimes right at their fingertips. This way they can research when and where most of the crimes occur and try to avoid these situations all togeter. Overall I think CargoNet will be a great asset to the trucking industry. Like in any industry the cosolidation of data will help with efficiency and service.
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