Management is responsible for designing a system of cargo handling and implementation procedures that reduce vulnerability to theft. The selection of high-quality first-level supervision is crucial to the practice of the planned security measures. Physical security for cargo is a critical concern. The size and design of a terminal must be suitable for its present and projected needs. The warehouse must be functional. Space is required for temporary storage as well as for office accommodation to support the cargo-transportation activity. A restricted area is needed for customer service and operations management, and a secure enclosure for high-value merchandise is a primary consideration. Fencing, lighting, and parking are other areas of concern. In the general area of operating practices, security procedures must be developed for both full-load and small-lot shipments and for the acceptance of cargo and the disposition of paperwork and cargo after acceptance. Further, transportation, destination, and delivery functions should be prescribed with security in mind. Special protection practices are needed to secure high-value cargo, hazardous materials, and perishable items. A loss-prevention program should include a periodic review of irregularity reports to pinpoint problem areas that require corrective action. The results of the periodic inspections should be assessed by management. Nine loss-prevention techniques are listed.