Work with Insurers Before Things Go Wrong
Talking with an insurance agent before things go wrong is one of the most important steps supply chain professionals can take to mitigate supply chain risk. The reason is simple: With years of incident data, they know what works and which technologies are worthwhile. And, they’re willing to share that knowledge with their clients. After all, insurers have a vested interest in minimizing losses!
Suprisingly, though, most supply chain experts overlook this expertise, according to the recent University of Tennessee study commissioned by UPS Capital, “Managing Risk in the Global Supply Chain.” Therefore, supply chain managers often are unaware of new programs for high-value or temperature-sensitive products, while other departments often assume – erroneously – that these programs are part of their company’s usual business processes.
Temperature-sensitive services are one example. By monitoring item temperatures during shipping and reporting in real time, carriers can manage risks proactively by re-icing or expediting delivery. With monitoring programs, some insurers even reimburse items’ full sales value if loss or damage occurs, according to the UPS Capital study.
Monitoring devices eqiupped with GPS tracking or wireless alerts also help clarify liability when incidents occur. As attorneys scrutinize the supply chain, these tamper-proof devices help determine who had custody and the extent of impacts of temperature excursion.
ShockWatch’s full line of temperature and impact monitors are part of a comprehensive risk management program. Talk with your insurers about best practices, then call Shockwatch to learn more about ways monitoring can reduce your risks.