Organized Retail Crime: A Growing Threat to Supply Chains
Why it matters
Organized retail crime (ORC) has evolved beyond simple shoplifting into a sophisticated network of criminal activities that threatens the entire retail supply chain.
The big picture
Jonathan Gold, VP of supply chain and customs policy at the National Retail Federation, highlights the complexity and scale of ORC:
ORC now encompasses cargo theft, gift card fraud, and other illegal activities to obtain goods for profit.
Criminal networks have developed their own sophisticated supply chains for stealing and distributing goods.
The impact extends beyond retailers to employees, consumers, communities, and the national economy.
By the numbers
A recent Verisk study shows a 46% increase in cargo theft in Q1 2024, with many incidents going unreported.
What they're saying
"Cargo at rest is cargo at risk," says Gold, emphasizing vulnerabilities in transportation and storage.
What's next
Gold advocates for:
Increased federal understanding of ORC's complexity
Harsher penalties for organized groups rather than individual perpetrators
More support for state and local law enforcement to prosecute criminal enterprises
Improved reporting and partnerships between retailers, transportation providers, and law enforcement
The bottom line: ORC is a complex, evolving threat that requires coordinated efforts from retailers, law enforcement, and policymakers to combat effectively.
