Crime Risk Management across the Consumer Goods value chain – Overview & Lessons

Overview

• The CGCSA and the Consumer Goods Industry

• Collaborative platform and approach

• Truck/Freight Hi-Jackings and approach

• Closure

The Consumer Goods Industry in a Nutshell

THE CONSUMER GOODS COUNCIL (CGCSA)

Is a membership-based company representing over 12,000 members in the retail, wholesale and manufacturing of consumer goods

Facilitates engagement between stakeholders in the Industry and represent the interest of the Industry to the Government and other regulatory bodies

The CGI sector contribution to the national economy, by classification

CGI %

Gross Domestic Product

18.20% 9.60%

Employment23.60% 4.80%

Exports9.90% 34.00%

Net taxes13.40% 4.50%

Gross Fixed Capital Formation13.10% 12.10%

The Retail Crime Risk Landscape

Counterfeiting

Shrinkage

Shoplifting

Burglaries

Business Robberies

CIT Robberies

Truck Hijacking

ATM Attacks

CGCRI Robberies trend

0

5000

10000

15000

20000

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total and Retail Business Robberies(Actual Incidents)

SAPS reported Business Robberies FMCG Retail Robberies

SAPS: 19 170 Robberies in 2015SAPS: 19 170 Robberies in 2015 6 %

47 %

CGCRI Robberies trend

0

100

200

300

400

500

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Total and Retail Business Robberies(Normaised to 100 at 2006)

SAPS reported Business Robberies FMCG Retail Robberies

SAPS: 19 170 Robberies in 2015SAPS: 19 170 Robberies in 2015

The Consumer Goods Crime Risk Initiative

Manufacturing Logistics/ Transport Wholesale & Retail

THE CONSUMER GOODS CRIME RISK INITIATIVE (CGCRI)

A collective & pro-active response by the industry to the ongoing incidence of serious and violent crime affecting the

industry.

Founded on the principle that, as a collective, the industry can accomplish more and should support and strengthen

government’s fight against crime

CGCRI Core Offerings

Crime Incident Information & Risk Analysis Proactive

Service Disruptions &

Crime Incidence

Alerts

Employer Reference Site

& ID Cards (Integrity

Management)Government & Business

Stakeholder Liaison

Crime Incidence

Consequence Management & CJS Support

Crime Prevention

Best Practices &

Interventions

CGCRI Service Offerings

Holistic Stakeholder Landscape

Manufacturing Distribution Wholesale & Retail

Security service providers

Merchandisers & other service providers

Business Associations & stakeholders

Retail companies - FMCG, Clothing

& Jewellery

Property owner & management

companies

Transport & Freight

companies

Manufacturing & importation companies

Government Departments and Agencies

Retail Anti-Crime Framework

RETAIL INDUSTRY COLLABORATIVE INFORMATION PLATFORM

Information sharing with

SAPS

Crime threats and Hot Spots

Crime Prevention Measures &

Interventions

Crime Scene Management

& Evidence Collection

Proactive Risk Alerts

CROSS INDUSTRY COLLABORATION

INDUSTRY/GOVT COLLABORATION

Manufacturing Distribution Wholesale & Retail

Illustrative ExampleRobberies targeting a specific product

11

33

97

20

55

239244

89

0

50

100

150

200

250

300

2009 2010 2011 2012 2013 2014 2015 YTD

Total Sector

Illustrative Example Cont.

Robberies targeting a specific product

12

8

1410 10

710

25

1012

10

0 1

7 6 52

40

4 51 1 2 1 10

10

20

30

40

50

60

70

Jan

14

Feb

14

Mar

14

Ap

r 1

4

May

14

Jun

14

Jul 1

4

Au

g 1

4

Sep

14

Oct

14

No

v 1

4

De

c 1

4

Jan

15

Feb

15

Mar

15

Ap

r 1

5

May

15

Jun

15

Jul 1

5

Au

g 1

5

Sep

15

Oct

15

No

v 1

5

De

c 1

5

Jan

16

Arrests

Segment A

Illustrative Example Cont.

Robberies targeting a specific product

13

8

1410 10

710

25

1012

10

0 1

7 6 52

40

4 51 1 2 1 1

6

1816

1820

17

11

17 16

27

1416 16

22

29

1922

19

35

38

50

58

65

51 51

0

10

20

30

40

50

60

70

Jan

14

Feb

14

Mar

14

Ap

r 1

4

May

14

Jun

14

Jul 1

4

Au

g 1

4

Sep

14

Oct

14

No

v 1

4

De

c 1

4

Jan

15

Feb

15

Mar

15

Ap

r 1

5

May

15

Jun

15

Jul 1

5

Au

g 1

5

Sep

15

Oct

15

No

v 1

5

De

c 1

5

Jan

16

Segment A Segment B Linear (Segment B)

The Truck Hi-Jackings Landscape - Challenges

Not all hi-jackings reported to SAPS

Multi-agency involvement required

Crime scene management

The illegal use of jammers

Internal collusion (drivers and syndicates)

Training & awareness deficiencies

Intelligence, investigations & prosecutions

Silo approach

Fragmentation of effort

Perpetrators involved in multiple hi-jackings

The Truck Hi-Jackings Landscape - Solutions

Centralised reporting of all hi-jackings

Multi-disciplinary investigations

Organized crime threat analysis

Technology Activation

Information sharing nodal points

Most wanted suspects identification

Hot spot route & risk analysis

Focused multi-agency interventions

CGCRI Value Proposition

• Strengthen and structure the partnership and cooperation between industry and government;

• Enhance information, and sharing, on hijacking incidents across the industry, modus operandi, hot spots, trends, suspects, etc.;

• Proactively address transport operator and freight service provider vulnerabilities and risks;

• Support and strengthen law enforcement and prosecution;

• Monitor and provide feedback on arrest and convictions – and alleviate any blockages and impediments;

• Ultimately, reduce the level of truck hijackings.

Closure

• Crime is a non-competitive issue

• Collaboration across business

• Information sharing is central

• Structured partnership with government

• Be proactive