Articles
Risks and Rewards: Risk Management Strategies
Europe Raises the Compliance Bar. Is Your Supply Chain Prepared?
Sweeping regulatory changes in the European Union (EU)are raising complex questions for businesses and introducing new tensions along the world’s supply chains. Manufacturers and importers will soon be tasked with reporting the origin of some metals and materials used in their products. They also will be responsible for disclosing aspects of their suppliers’ human rights […]
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Is Your Business Prepared for the Worst?
Disasters and tragedy happen every day. From fires and theft to severe weather events, we experience disruptive incidents on a regular basis. So how prepared is your business to withstand a crisis? How well have you incorporated risk analysis and crisis preparation into your business operations? Effective risk assessment depends on using our imagination to […]
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Serialization: It’s the Real Thing
To help combat counterfeiting, the premium beverage industry is taking advantage of serial numbers on product packages to uniquely identify products for increased connectivity throughout packaging operations and the supply chain. Premium beverages such as expensive wine, whiskey, and cognac have become an increasingly active market for counterfeiters in China, India, and Russia. It’s easy […]
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Three Steps to Mitigate Supply Chain Risk…Now
A supply chain vulnerability and risk assessment should be an integral part of any overall supply chain strategy analysis. Unfortunately, this is rarely the case. Many businesses don’t address supply chain vulnerability and aren’t prepared for potential supply chain disruptions due to either random acts of nature or deliberate actions. The recent West Coast port […]
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6 Global Supply Chain Challenges To Ignore at Your Own Risk
Along with the many benefits that come from sourcing outside the United States, such as low-cost manufacturing, several issues must be properly managed to ensure a successful supply chain. Finding a rock-bottom price in China or India is not the problem, but landing great costs while avoiding distance, timing, quality, and language problems can be […]
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Preparation: Your Best Asset in Managing Supply Chain Disruptions
Supply disruptions occur daily, caused by delayed deliveries; weather impacts on inbound supply; and prolonged standstills associated with natural disasters, port labor strikes, or critical supplier failures. Whatever the reason for the disruption, supply chain managers prove their value by delivering—no matter the circumstances. An active risk management process helps identify a range of possible […]
Read MoreAvoid Big Losses When Shipping Big Machinery
In their journey from manufacturer to customer, large pieces of sophisticated machinery often sustain costly damage due to lack of care and attention in packaging and handling. The losses, however, often go beyond the machinery’s value. Businesses can also suffer significant production shortfalls if their facilities grind to a halt as they wait for replacement […]
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Do You Know Who You’re Doing Business With?
Q: My company’s cargo volumes are increasing now that the economic slowdown is beginning to turn. We are receiving orders from new customers we developed through international marketing efforts. What should we look for when screening new clients? A: As you enter into new business relationships, it is important that you know your customer. Five […]
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New Year, New Insurance Review
The start of the new year is the time to make resolutions, and risk managers should resolve to review their operations to ensure that risk and insurance programs are in order. Your risk review should address several key questions: Are you planning to offer new services? If so, consider your insurance obligations before the transaction […]
Read MoreEmbargo Violations: Ignorance is No Excuse
Q:I recently read that DHL paid a $9.4-million fine to settle a claim by the United States for violations of sanctions against shipments to Iran. Can you discuss what happened and how I can avoid a case like this? A:The case you refer to was an action taken by the U.S. Treasury Department regarding 309 […]
Read MoreFoul Play: When Merchandise is Stolen, Who Pays?
Q:A Philadelphia newspaper recently reported an armed heist of Sports Authority merchandise worth $500,000 from a local 3PL warehouse. According to the account, a former employee of a trucking company that delivered Sports Authority merchandise along the East Coast stole one of the company’s trucks. He and two accomplices held a warehouse guard at gunpoint […]
Read MoreC.H. Robinson Case: Brokers Learn Liability Lesson
Q: I read about a recent case in which a jury awarded $23.7 million against a transportation broker who hired a motor carrier that was involved in a fatal automobile accident. As I understand it, the transportation broker did not own or operate the truck that caused the accident. How is it possible that the […]
Read MoreHelp Wanted: Seeking Qualified Logistics Professionals
Q: As a logistics provider, I find that hiring qualified staff has grown increasingly complicated with the rise of demands such as regulatory compliance, security initiatives, and constantly changing industry standards. Why is this? What can the supply chain and logistics sector do to attract a younger generation of professionals to this field? A: One […]
Read MoreFacing the Challenges Ahead
During the past year, global events created new concerns for logistics operators. For some, finding insurance coverage has become increasingly difficult, as insurance companies need to balance the likelihood of a significant loss against the prospect of recovering their payout—a trying task in times of financial uncertainty. Purchasing insurance may well become costlier in the […]
Read MoreSigned, Sealed, Delivered…But to Whom?
Q: I am a warehouse operator. An insurance company recently refused to provide me with coverage for the wrongful delivery of goods stored in my warehouse, citing the Uniform Commercial Code as the reason. Can you explain the problem? A: The Uniform Commercial Code (UCC) is a body of law that has been accepted, with […]
Read MoreA Behind-the-Screens Look at Air Cargo
Q: I am an air consolidator and arrange to ship cargo to domestic and international destinations. I understand that the Transportation Security Administration is developing a system to subject 100 percent of domestic and international cargo to security screening. Are you familiar with this initiative, and how will it affect my operations? A: Last year, […]
Read MoreA Matter of Life and Death
Q: I am a freight forwarder providing a service in which I deliver ISO tanks to my customer, who fills them with hazardous liquids and gas. Once the tanks are filled, I arrange to have them transported from my customer’s facility to their destination, usually in a foreign country. I recently read about a case […]
Read MoreTaking on One-Offs
Q: I operate a marine terminal, and I have an insurance policy with a $1-million limit to cover loading and discharge operations. A customer wanted me to discharge a heavy piece of machinery valued at $75 million. When I asked my insurance company to increase its limit just for this one operation, it refused to […]
Read MoreThe Perils of Trucking: It Takes a Thief
Q: I am expanding into Central and South America and need trucking insurance to cover my cargo. Can you help me? A: This is a common question from shippers who cannot obtain cargo insurance, from forwarders who are unable to get liability insurance, and even from truckers who are required to secure cover before any […]
Read More2008: Applying What We Learned
In this last column of 2007, I thought I’d look back at some practical issues addressed last year, and speculate on future trends in supply chain risk and liability. Insurers will broaden their scope. In October, we heard from a logistics operator whose business grew, through an acquisition, from handling and transporting air cargo to […]
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