How to Manage Shipping Risks
All businesses have risks. The shipping industry is no exception and there are several factors that should be taken into consideration. Safety, problem resolution, timely delivery, accurate delivery, lost merchandise, fees, taxes, and insurance are some factors that should be examined when dealing with the shipping industry to minimize as many risks as possible.
In shipping the advantage is the ability to buy anything from anywhere in the world and get it delivered to your door with no more effort than a click of the mouse. But the cons include all the risks and possible additional fees surrounding your purchases. Delivery problems include lost items, damaged merchandise, delayed delivery and misrouted goods.
At times, there is good cause for delivery problems. Natural disasters, wars, terrorism, and cargo theft are reasons for losing or delaying shipped items. Accidents including shipwrecks, truck, plane, and train crashes are common, accounting for lost, delayed or damaged goods. However, because of the potential shipping risks, insurance is available to cover costs. Before choosing a transportation carrier, examine the insurance terms to ensure losses are covered via refund or replacement. Determine if there are any additional costs associated with insurance coverage and if the offered coverage is sufficient. The benefits of choosing well-known and reputable carriers are clear in such cases since most established shipping companies have a solid reputation based on good service.
Another common reason for shipping delay is human error. Supplying insufficient or incorrect information regarding sender or receiver may cause a delay or loss of an item. The item shipped per the instructions but the incorrect information given caused it to be routed to the wrong place. Tracking information is useful in such circumstances so the items can be re rerouted to its intended recipient. Consumers should be aware of expected delivery time and track purchases accordingly. If an item is reported as delivered, most shipping companies can track the item to determine the cause of its loss.
Knowledge of fees is important when dealing with shipping companies. Examine all the policies thoroughly to determine the possibility of additional charges. In order to receive merchandise, consumers often pay fees in excess of the expected cost. Disreputable shipping companies take advantage of this. Typically, taxes are not included in the shipping and handling costs so verify this with the carrier. It is also important to understand how the charges are assessed. Per weight, per value, and flat rate fees are common.
Knowledge is the key factor in minimizing risks associated with shipping. If the risks are understood, information can be obtained to ensure they are dealt with properly. Ensuring all policies and procedures are clearly documented and understood will help reduce risks.