Supply Chain Risk Tops Business Concerns
The number one concern among international CEOs is supply chain failure, according to the recent 2014 Chubb Multinational Risk Survey. Supply chain risks trumped the year’s staggering cyber security breaches, global political upsets and increasing regulations.
Chubb indicates that 52 percent of the U.S. and Canadian companies surveyed plan to expand their international business and 27 percent plan to introduce new products abroad. “As they expand their international business operations, companies need to take a more holistic or global approach to managing risk,” says Kathleen Ellis, senior vice president and worldwide manager for Chubb Multinational Solutions.
That includes steps to ensure that products not only arrive, but that they arrive intact. Smaller events – cargo rerouting or customs delays for temperature-sensitive products, and careless handling, harsh drops or sudden tilts for fragile items, for example – can cause major problems upon delivery.
Although risks can’t be completely mitigated, they can be monitored. Indicators or monitors placed on packaging are potent reminders to cargo handlers that someone cares – and notices – how this is handled.
Perhaps more importantly, monitoring solutions provide hard evidence for shippers, carriers, and insurers to understand the conditions cargo experiences and to re-engineer solutions to reduce risks. Shock or temperature monitors may be the first indication that more robust packaging is needed, or that routes or carriers should be changed for a season or even permanently.
A robust monitoring program provides information – hard data that can help you better manage risks to your cargo and, therefore, to your business.
For information about implementing a cargo monitoring program, contact ShockWatch.