Transportation Operations LINCS Practice Exam

What occurs when items are stolen by trusted individuals within freight handling?

1. Product Loss

2. Product Pilferage

3. Procurement Failure

4. Inventory Shrinkage

The correct answer is: Product Pilferage

When items are stolen by trusted individuals within freight handling, it is referred to as product pilferage. This term specifically describes the act of stealing small amounts of goods, often by individuals who have legitimate access to them, such as employees or trusted partners in a logistics or supply chain setting. Pilferage can occur in various forms, including taking merchandise for personal use, which distinguishes it from broader categories of theft. This concept is important in supply chain management and loss prevention strategies, as it highlights the need for monitoring and securing inventory, even from those within the organization. Those handling products have a unique opportunity to pilfer due to their access and familiarity with the freight environment. Understanding product pilferage allows companies to implement targeted controls to mitigate risks and safeguard their assets effectively.