Cargo Losses: The Cost is Higher Than You Think
Inbound Logistics writer Tom Hayes released an article a while back about the cost of cargo losses, and how the total ends up being much greater than it seems to be on the surface. Although the original work is from years ago, the truth remains that cargo losses are both complicated and costly. Read on for a synopsis of what he had to say.
An obvious set of costs when it comes to issues with shipping cargo are theft and damage. However, these are not all of the ways that your company may be financially impacted. Some other examples include “supply interruption, higher insurance claim costs, expedited freight costs, and lost revenues from cancelled deliveries” to name a few that Hayes mentions in his article.
When cargo is lost, stolen, or tampered with, it impacts the supply chain and the consumer. An impact on one part of a single supply chain can have an impact on many others that it is connected to and interacts with. No matter how the cargo is transported, it is at risk for theft. This is why it is important to take proper precautions and be vigilant about your supply chain.
The article has a few steps to take to calculate the costs of cargo loss in your company. They include calculating the probability of loss and the economic consequences of the loss, followed by calculating the economic value. Having the ability to capture and record your costs will assist in loss prevention strategies. Tools like my EZClaim are available to assist in this effort.
For more detailed information on how to evaluate the impact that cargo loss could have on your company, please click the link to view the full article: https://www.inboundlogistics.com/cms/article/the-full-cost-of-cargo-losses/#.XG_zakiSV2U.email