What supply chain professionals need to know about insurance.
Transportation risk can come from a myriad of sources and can be very hard, if not impossible, to predict. These events run the gamut and include weather extremes, theft, hijacked trailers, global crises, cargo lost at sea (maritime law allows a captain to jettison some containers to save the rest), catastrophic truck or rail accidents, truck fires, etc. In fact, there’s an estimated $50 billion in annual global financial impact from cargo loss (1).
At the University of Tennessee, we work with hundreds of companies through our supply chain audits and Supply Chain Forum. These companies range from very large (over $400 billion in revenue) to smaller firms, and include retailers, manufacturers and logistics service providers. Most of the companies in our database (at least 80%) have experienced a supply chain disruption that caused a major spike in cost and/or a major loss in revenue and profit. Small businesses are especially at risk from a large loss event.
More and more companies value supply chain professionals that can anticipate and look for ways to mitigate risks, rather than those that deal with consequences as they happen. But if something does happen, the company’s financial health must be protected, and that’s where insurance comes in.
Download the full white paper below to learn more.