Security tech ‘tipping point’

Security tech ætipping pointÆ       Since Malcolm Gladwell’s popular paperback The Tipping Point was published in 2000 it seems that every new technology has been hyped as at, near or approaching its own tipping point.
      The term, used to describe the point at which something takes off based on a series of smaller ‘ and sometimes innocuous ‘ contributing factors, has become a bit overdone.
      In the case of cargo theft prevention technology, however, the industry could be on the doorstep of a revolution that moves tracking devices from obscurity to ubiquity. Cargo theft incidents are increasing in frequency and size, while the cost of preventative technology is plummeting. Supply-and-demand conditions are working in favor of shippers who want to protect their cargo and the companies that provide the technology.
      ‘Tracking technology today is on the edge of wider adoption. Increased competition and research and development spending are causing a massive reduction in overall cost,’ said Ron Greene, general manager of Austin, Texas-based FreightWatch International USA. The return on investment ‘for tracking technology lends itself to very high-tech or high-margin products like pharmaceuticals.’

Greene

      But wider adoption rates are creating economies of scale for equipment manufacturers that were struggling to make these devices cost effective, he said.
      Based on recent trends FreightWatch expects prices for tracking devices to drop so dramatically in the short term that using a technology like they provide will become a no-brainer.
      ‘Twelve months ago the cheapest tracking technology was $600 per device,’ Greene said. ‘Today the low-end FreightWatch device costs $150. In two years we will see a sub-$50 device.’
      The company expects this technology will reach its tipping point when devices become cheap enough that they are essentially disposable.
      ‘As we bring the price point down returning the device becomes less important,’ Greene said. Presently the investment in a device needs to be recouped over many uses. Since supply chains are rarely a balanced, two-way flow devices need to be relocated or returned, which adds to cost in terms of money, time and resources.
      In March 2010, FreightWatch unveiled its latest device, the Geo F2 ‘Pill Bottle’ Location Tracker, which the company describes as an industrial strength, assisted-GPS tracking product that includes Qualcomm technology. The company said this new device’s small size and long battery life make it more versatile and useful than previous models.
      Tracking devices like the Geo F2 use two antennae ‘ one GPS and one cellular. The GPS connection provides the device with information on its location. The cellular connection links the device and its coordinates into the FreightWatch network. This device can be stuffed into a container or trailer with cargo and operate effectively wherever a cellular phone would work.
      ‘Very few devices can be imbedded in cargo, inside a trailer and work,’ said Bill Games, president of FreightWatch Security Net, a subsidiary of the FreightWatch Group. ‘In the event there is no clear view of the sky and the GPS cannot function, the device can use cell towers to get hints on its location by triangulating its position.’
      Tracking devices connect to a cellular network to relay their coordinates and other information back to FreightWatch’s FSNtracks, a Web-based self-monitoring platform that provides global location and status visibility data around the clock. There the data is put to use in protecting cargo from theft. Like cellular phones this service comes with a fee.
      ‘Monthly service fees range from $20 to $90 per month based on usage,’ Greene said. ‘Shippers tend to use a mid-range plan whereas law enforcement tends to require high use. But many of our biggest customers are high-value shippers.’
      The combination of the FreightWatch hardware, systems and services provides an array of features including:
      ‘ Active monitoring.
      ‘ Arrival/departure times alerts.
      ‘ Operational metrics.
      ‘ Reactive monitoring.
      ‘ Real-time disruption management.
      ‘ Route deviation/unauthorized stop alerts.
      ‘ Secured flight plans.
      ‘ Temperature monitoring.
   FreightWatch offers two broad levels of service:
      ‘ Technology only. Customers use the company’s hardware and tracking portal to manage their own security programs. This approach lends itself more to a reactive response to emergencies.
      ‘ Technology and monitoring. Customers use FreightWatch hardware and outsource the monitoring and reporting functions to the company. This is a more proactive approach that allows customers to prevent theft instead of just recovering stolen loads.

‘It’s not just the reduction of theft. The real time visibility has saved companies millions of dollars in operational efficiencies.’

      Greene explained that smaller customers tend to buy self-service oriented programs while larger companies lean toward FreightWatch’s more involved offering. ‘The larger the customer the more they are inclined to outsource,’ he said.
      FreightWatch boasts a perfect 20-for-20 recovery rate for all shipments stolen with a covert tracking device like the Geo F2 on board. ‘For clients who subscribe to FreightWatch’s active monitoring solution, theft rates have been reduced to zero,’ Greene added.
      Looking forward, Greene believes security will become a secondary benefit to the operational benefits the tracking technology can offer. ‘FreightWatch provides true in-transit visibility with security as a benefit,’ he said. ‘It’s not just the reduction of theft. The real time visibility has saved companies millions of dollars in operational efficiencies.’
      If tracking technology can cross over from theft prevention to a tool that improves operational efficiency, then this will certainly hasten the pace at which it approaches the tipping point.