Working as a part of the supply chain tends to put a lot of pressure on business owners. When even the slightest error causes setbacks for your company, it can lead to major disruptions to the entire chain. This can cause you to lose clients and vendors, putting your company in a very difficult position. Thankfully, there are ways to avoid such scenarios. By reviewing the biggest risks you’re likely to encounter, you can plan in advance for disaster.
Review the Threats
When assessing your distribution risks, it is important to think about the exact type of goods you are responsible for transporting. If you tend to primarily distribute perishables, for example, then one of the biggest issues to consider is power failure. Should the electrical components of a truck fail, you could lose an entire shipment in an instant. You should also look at risks that are common with all distributors. Internal theft tends to lead to the largest amount of losses over time, so enforcing security standards can be key. Other threats to consider include:
- Accidents while goods are being transported
- External theft and cybercrime
- Fleet vehicle collisions
Formulate a Plan
By assessing the risks your business is most likely to face in the future, you can ensure you don’t allow for disruptions of the supply chain. Take time to review the biggest and most common threats to put together a strategy that keeps your company safe.