Constructing a logistics tracking system for preventing smuggling risk of transit containers

This study aims to justify a systematic decision process for constructing a desirable logistics tracking system, based on information integrity risk associated. It consists of four interrelated executions of analyzing risk, assessing risk, prioritizing mitigations, and selecting mitigations. Failure Mode Effect Analysis, risk triangle, and cost-effect indicators are organized to provide a system solution, calibrated using focus group meeting and group decision process. In the empirical study, Automatic Vehicle Location system was initiated to track the container movements in a Taiwanese marine port. But the justification recommends adding four effective risk measures to finalize the system. The justified logistics tracking system is concluded to be more effective than the current manual escort in smuggling prevention, i.e. information risk reduced by 62%. Besides, direct cost saving of the carriers is secured, together with the considerable macro benefits derived from fastened physical flow and improved trade security, to increase the project feasibility.