When cargo is lost or damaged during transit, it is essential to submit a formal cargo claim to the carrier to recover any funds owed to the consignee. While significant damages and losses may capture the consignee's attention, more minor, routine claims often go unnoticed or are not filed. This oversight can result in lost revenue and prevent the identification of loss trends.
A cargo claims management program involves outsourcing a company's claims for lost or damaged goods to a specialized third-party provider, such as ECIB. Risk managers and logistics professionals frequently lack the time or resources to address cargo claims effectively, making a cargo claims management program an appealing solution.
Here are the five main benefits of implementing a claims management program:
Reduced Administrative Burden on Internal Resources:
A claims management program is designed to streamline your team's workflow, enabling them to concentrate on their essential responsibilities rather than dedicating countless hours to the often tedious process of pursuing claims. By implementing such a program, your team can efficiently manage claims with improved organization and accuracy, freeing up valuable time and resources to focus on strategic initiatives and delivering exceptional service.
Enhanced Recovery from Carriers:
Collaborating with a dedicated, logistics-oriented claims management firm can significantly enhance your financial recovery from insurance carriers. This partnership leverages industry expertise and specialized knowledge to navigate the often complex claims process, ensuring you secure the maximum compensation for your losses. With their support, you can streamline your claims efforts, mitigate delays, and ultimately protect your bottom line more effectively.
Improved Carrier Performance Management:
Leveraging cargo claims data analytics can empower your organization to pinpoint specific areas where losses occur. By analyzing this data, you can take informed action to address the performance gaps of underperforming carriers, ultimately leading to more strategic partnerships. This proactive approach mitigates financial risks and enhances your supply chain's overall efficiency and resilience, ensuring a smoother and more reliable flow of goods.
Ability to Analyze Supply Chain Exceptions:
Beyond monitoring carrier performance, cargo claims data enables your company to investigate issues like product packaging, accurate sign-offs, and other factors contributing to cargo claims, facilitating improvements in local operations.
Cost Reduction and Claim Control:
A dependable partner will work closely with you to develop and implement comprehensive process improvements. This collaboration includes tailored training sessions to enhance team skills, creating updated policies and procedures that reflect current best practices, and integrating effective strategies to optimize performance and efficiency. Together, we will cultivate a culture of continuous improvement that drives success and fosters innovation within your organization.
Additionally, engaging a claims management provider will maximize your recovery and provide valuable visibility to issues in your supply chain.
ECIB's local experts have the skills to help you manage your claims. If you want to discuss a cargo claims management program, contact ECIB today.