Risk management, particularly in logistics, needs to be no guesswork – it should be well-defined and proactive. It typically involves dealing with several uncertainties in supply, demand, transportation hazards, cargo theft, etc. The adversities often stem from such forces as yields, timing, pricing, or catastrophic events. To set against these setbacks, we’ve produced some actionable pointers for you. It will not only help you charter a better transportation journey but also manage your risk profile efficiently. See how:
Map all the logistical risks
Start by identifying which factors can hinder your processes. In this way, you will make the control planning, paying attention to each adversity individually. Using your operations history (case records) is also a good idea, especially to apply at this time.
Each risk entails the importance of specific prevention measures. Fines, accidents, non-monitoring of freight, for example, will require strict awareness measures. On the other hand, problems on the roads will require eventual changes in the route. Similarly, damage to the freight will call for better or reinforced packaging or other precautions.
Label each risk according to its severity
Once the risk identification is over, the next step is to characterize them. Ideally, the categories should be depending upon factors that bring about a heavy, noticeable, or trivial impact on your processes. So ordering by priority will be a correction script to be followed by the team.
Although it’s impossible to erase all risks from your company’s timeline, you can still control its effects. This way, you can mitigate them – so they no longer harm your business. It’s always critical that you act in chorus with your action plan and make the right decision. Nevertheless, don’t keep yourself from devising actionable strategies to withstand any exception. Simple words – don’t let any surprise surprise you!
Create a logistics risk management checklist
The more you deep dive into details, the better you have an idea of their “what” and “why.” Even the daily bustle would slow down, and handling issues would become more streamlined. Focus on your routine and develop a checklist with the points to be taken care of every day. Fleet maintenance, document verification, route review, reading of messages, transactions, customer interaction – these are some which we thought to be the key to success. You will find some more factors relevant to your business.
Technology might be of great help to you in this improving the scaffold. Some tools which might help you:
Enterprise Resource Planning (ERP)
Customer Relationship Management (CRM)
Transportation Management System (TMS)
Track-and-Trace
Warehouse Management System (WMS)
This one is not the ultimate list of choices; there can be more, which caters to your needs and expectations. But relying on modern freight forwarders who thrive in digital can act as an antidote to this chronic problem. Today’s digital freight networks like TruKKer offer holistic freight solutions and services to shippers and businesses alike. It’s an online marketplace buzzing with new load requests from shippers every day. On the other end of the demand spectrum, carriers and transporters seek to connect the loads and haul them. All this happens in real-time, and the platform automatically collates all the data so that the underlying AI mechanisms can assess the performance and benchmark for future references. The whole freight journey is completely trackable for better control. Shippers and carriers share a single source of truth and enjoy customized dashboards outlining all the performance analyses.
Rely on/Leverage reliable partnerships
Your business partner might effect new changes or bedlams in your business. Be careful while closing a deal with your forwarder or service provider. The suggestion here is you should be capable enough to judge whether the available benefits make sense to both the demands at hand and the moment experienced by your business.
TruKKer has a lot to contribute in this regard. We increase competitiveness and reduce costs through technology. We have more than 30,000 service-ready trucks awaiting to connect an incoming load and ply their trade. We’re the largest freight network in the MENA region and with the first instant pricing structure in the region. Shippers on our platform are not wreathed in uncanny anticipations and don’t need to contact several service providers for the best price. Our platform gives you instant quotations on booking for your best trade lanes in the MENA region. So you contain risks as much as possible while connecting your trade across the region.