Learn about emerging risks and get tips to secure your supply chain.
What’s the story: The pandemic has shaken up supply chains, causing some businesses to reconsider the ways in which they manufacture, move and sell their goods. There are new threats to your business. We recently spoke with a few of our underwriting experts to get a sense of the risks experienced by shippers, and emerging strategies for better securing your supply chain.
Why it matters: Now is the time to conduct a thorough risk assessment of your shipping practices to ensure that you have strong loss prevention protocols in place and apply the appropriate protection to help mitigate your financial risks.
Labor shortages – Cargo may be ready to move, but a lack of available drivers or operators can delay the movement of cargo.
Pilferage of shipments – Shipments left unsecured and un-delivered can lead to upticks in theft.
Stockpiling – Businesses that keep extra inventory to avoid shortages may risk big losses in the event of fire, theft, or natural disasters.
Targeted rail theft – Criminal groups targeting high-value containers shipped via railroads may lead to increased incidences of theft.
Geopolitical risk – Global conflicts and pandemic-related shutdowns can make cross-border delivery even more complex.
Strategies to Mitigate Risk:
Increase due diligence – Vet drivers and freight carriers thoroughly to help ensure reliability.
Understand your route – Mitigate theft risk by minimizing any time your shipment will spend at rest and unsecured.
Reassess your risk profile based on inventory – Ensure that you have the appropriate level of coverage for in-transit and stationary goods.
Conceal sensitive information – Remove unnecessary descriptions of goods on boxes, labels and pallets and use dark color shrink wrap to obscure items.
Enhance security protocols for high-value goods – Increase visibility into activities within warehouses and docks with security cameras, the use of locked cages, increased on-site security. Additionally leverage security tape and use GPS tracking devices to help pre-alert deviation in planned routes.
Diversify supply chains – Source goods from varied sources to minimize geopolitical risks.
Coordinate deliveries – Ensure that receivers are available to accept the goods and secure signatures for higher-value items.
Talk to a UPS Capital® representative to learn more about how we can help.
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