Manufacturer of Perishable Goods
With Perishable Goods on the Line, a Company Seeks Clarity on Security’s ROI – And Finds $55 Million Saved
When you manufacture perishable goods, mistakes matter. An elevated temperature in a truck trailer isn’t an inconvenience; it’s a critical health issue. And a mistaken destination set point for a delivery? With goods that have an expiration date, deliveries aren’t late—they’re a loss.
To avoid mistakes and associated costs, one major food processor knew it needed an upgrade to its antiquated paper record keeping. It needed a better way to track compliance and eliminate errors. It found what it needed with U.S. Security Associates’ (USA) P3 Technology Platform℠.
USA worked with the company to customize the P3℠ compliance capability to their specific needs, creating 140 unique incident natures within five categories: People, Product, Profitability, Planet, and Other. The company’s security leaders then took another step further to research and quantify the financial value of incidents eliminated, such as a trailer seal discrepancy or an unattended pest control issue, or an incorrect trailer number at the gate, a trespasser, or a driver without proper identification, etc.
What they found was staggering. Based on a truck’s weight, the average value of a load saved—by identifying a refrigerated truck with a temperature slightly out of allowable range, for example—is more than $36,000. Compile such savings, across all incident categories, and the Food Company learned that the work of its security service avoided more than $55 million in potential losses in one year—at a single site.
Efficiency, Visibility, Intelligence
With some truckloads worth as much as $60,000, a missed security patrol isn’t an option, so visibility into Security Officer compliance is critical. That is exactly what P3 provides via GPS tracking of Officer movement. Customizable dashboards allow clients to view whatever aspects of security operations they choose—from a heat map denoting an Officer’s movements to a detailed breakdown of Officer activities, incidents, or events. If there is any question about a specific patrol, the company can now easily verify the activity. The P3 Technology Platform has all the different tools the company needs to extract value from security expenditures, to view and manage incidents, produce daily activity reports, and establish predictive and optimize tour patrols.
A major food processor put a dollar figure to different incidents to better understand the value of its security service. “The results were mind boggling,” said a senior U.S. Security Associates executive. “Now they’re requiring that P3 is included at every site across the country.”
The P3 system marks a dramatic upgrade from the method the food processor had used prior to contracting with USA, which consisted of a paper-and-pen process of checking in and checking out trailers. USA’s technology-based approach allows for richer data capture and provides a fail-safe compliance method to ensure that all required information is captured for every vehicle entering or exiting a facility.
In one case recently, a carrier picked up the wrong trailer, a mistake USA Officers caught at the gate. If they hadn’t, in the world of perishable goods, it would have meant a complete loss for thecompany.
“In addition to saving all that money by preventing losses, P3 has helped the company reach a whole new level of efficiency,” according to one senior operational executive at USA. “Because it manages all activity in real time, they have access to all the information immediately. Before they were having to dig through paper to get at the information they wanted.”
Finding Security’s ROI
Many companies are searching for the “value-add” in security. Some of the benefits may be hidden, yet worth a significant ROI capable of transforming protection into a business benefit. That is what “better outcomes” is all about! If you lead the security effort, then justifying business ROI may seem off-putting. After all, if you knew how security could provide a bigger payoff, you’d already be doing it. So how do you start? Where do you look?
The answer is not always new programs or shifting priorities, but simply improving how well the company documents its activities and calculates their value. There is value in security, and while it can be hard to tally all its merits into a dollars-and-cents calculation, it is possible to highlight security’s value through detailed activity monitoring and incident management and translating it into a business case for security.
This is exactly what P3 provided the food maker’s corporate security manager. He had a sense that security was providing value, but he needed P3 and the data it provided to demonstrate to senior management that security is more than a cost center—and that it supports the financial side of the business. And while the food maker’s corporate security manager expected data showing sizeable savings from security, $55 million was a ROI no one anticipated.