The hidden cost of supply chain risks
While freight shipping is generally reliable, it’s not immune to challenges. Industry-wide issues like fraud, theft, damage and service delays can disrupt even the most carefully planned supply chains. If not managed proactively, these risks can lead to costly setbacks like lost sales and strained customer relationships.
By taking proactive steps, businesses can reduce uncertainty and protect their freight. The right logistics provider helps manage these risks and provides tools and expertise to keep your supply chain moving reliably.
What risks threaten your freight?
Every shipment can be exposed to potential problems. The most common risks include:
Theft and fraud. Thieves can target freight in transit through physical theft and fraudulent activity like double brokering and carrier identity theft.
Damage. Improper handling, inadequate packaging or accidents during loading and unloading can compromise your goods.
Delays. Weather, traffic and capacity shortages can cause missed deadlines and added costs.
Unexpected fees. Inaccurate shipment data or uncommunicated delivery requirements often result in surprise charges.
Identifying where vulnerabilities exist in your supply chain helps you take action before issues arise.
What’s most vulnerable?
Some shipments are naturally more complex and prone to risk. These can include:
High-value or fragile goods. These shipments require special handling and extra security to protect them from damage or theft.
Temperature-sensitive freight. This type of freight needs strict environmental control throughout transit to prevent spoilage.
Time-critical shipments. Delays can disrupt production schedules or customer commitments if not delivered on time.
Irregularly sized freight. Oversized or irregular loads may require special equipment, permits or packaging, and if not handled correctly, could lead to unexpected accessorial fees.
Understanding these risk factors helps you plan appropriately to avoid unexpected problems and other supply chain disruptions. Planning appropriately often includes taking steps to safeguard your cargo.
How to safeguard your shipments
While not every disruption can be prevented, these best practices can reduce your exposure to fraud, theft, damage and other supply chain risks.
Vet your carriers carefully
Work only with trusted carriers and providers. Checking safety ratings and compliance data through resources like the FMCSA Safety Measurement System can help ensure you’re working with legitimate, reliable providers.
Ensure proper packaging
Proper packaging is your first line of defense against damage during transit. For fragile or irregular shipments, consider custom crating, bracing or specialized equipment.
Provide accurate documentation
Incorrect dimensions, weight or freight class can cause service delays or additional fees. Clear instructions on the bill of lading also help carriers plan for special handling needs.
Plan realistic lead times
Rushed timelines can increase the chance of errors and limit carrier options. When possible, account for potential disruptions like weather, capacity shortages and seasonal demand. Building in buffer time allows for more flexible solutions and reduces the likelihood of costly expedite services.
Communicate delivery requirements early
Special delivery needs, such as required appointments, liftgate service or limited access delivery or pickup, should be shared upfront to avoid missed deliveries and surprise accessorial charges.
Even with strong preparation, shippers can only control so much independently. Choosing the right logistics provider gives you the expertise, tools and support needed to manage the risks beyond your control.
Reduce uncertainty with the right logistics provider
A true logistics partner can help reduce risk by offering:
Proactive planning. Identifying potential challenges before they happen.
Visibility tools. Real-time tracking and alerts for control over your shipments.
Strong communication. Coordinated updates to keep all stakeholders aligned during transit.
Expertise and resources. Skilled teams and extensive career networks to resolve issues quickly.
ArcBest combines advanced technology with a century of experience to help shippers protect their freight from fraud, theft and damage while minimizing costly delays.
Manage shipping risks with ArcBest
You don’t have to manage uncertainty alone. Contact ArcBest to learn how our proactive planning, visibility tools and vast industry experience can help you ship with confidence.
Want to dig deeper into protecting your supply chain from fraud, theft and damage?
Sign up for our on-demand webinar here.
