The start of hurricane season is an important reminder: Advanced planning is an essential element of risk management when it comes to business shipping.
At any time, for any number of unpredictable reasons, your ability to ship or warehouse freight or receive parts and supplies may be temporarily disrupted by the weather or other events you can’t predict.
Do you have a contingency plan for shipping your goods? You should think about it if you are relying on a single source for parts that are essential in maintaining production and delivery deadlines are critical.
Here are some issues to consider that can help you reduce risk in shipping your cargo and keep you fully operational in the event of a disruption:
- Risk Assessment: Evaluate the likelihood of an event and its impact.
- Preparedness: Outline potential responses that will ensure your freight reaches its destination safely and on time.
- Mitigation: The steps to take immediately should a disaster occur.
- Recovery: Following procedures to ensure your freight shipping and logistics operations are returned to normal.
The aftermath of some natural events, including a hurricane and associated flooding, can be long-lasting, disrupting normal transportation routes, closing roads and airports, destroying essential infrastructure and allowing time for clean-up and repair.
“We plan for the worst, identifying alternative transportation and freight delivery resources,” says Chris Cser, Director of International at ICAT Logistics Detroit. “But we spend even more time establishing partnerships and building strong relationships that pay off if a disaster or other disruptive event occurs that will impact our clients.”
Cser’s company maintains a network of suppliers and shipping partners around the world who they can call on any time, he says.
“The best freight networks are optimized for cost and risk,” says Cser. “That is our goal and our commitment to our customers. We plan for the worst and hope for the best.”
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