Uncovering Hidden Value in Cargo Claims: A Global Manufacturer’s Transformation

What if a hidden inefficiency in your supply chain was quietly costing you millions each year? For many global companies, cargo claims for lost cargo are an overlooked area with untapped potential. When left unmanaged, fragmented claims processes can lead to missed recoveries, increased risk, and costly blind spots. 

That was the case for one global manufacturer facing increasing logistics complexity and limited visibility into their cargo claims process. By partnering with ECIB to centralize and streamline their approach, they uncovered hidden value, reduced risk, and significantly improved operational outcomes.

The Challenge of a Decentralized Process

For a global manufacturer operating in over 150 countries with over 250 decentralized units and over 3 million shipments annually, cargo claims were an overlooked aspect of their supply chain. Fewer than 100 claims were reported each year, an implausibly low number given the scale and complexity of their logistics operations.

Without a centralized system for cargo claims, the organization lacked the visibility and control to assess financial impact, recover losses, or identify trends that could drive meaningful improvements.

Implementing a Centralized Solution

ECIB was brought in to solve this challenge by implementing a centralized, strategic cargo claims administration program. We deployed our proprietary Claims and Risk Management System across the client’s global operations, giving each location the tools to file claims online while providing a dedicated team to manage every step of the process from initial acknowledgment through investigation and resolution. As the program rolled out, the results exceeded expectations.

Within 12 months, they reported 2500 claims, and over $1.5 million in recoveries were returned to the client. Beyond the financial impact, the visibility gained through the program unlocked insights that allowed the client to take direct action on areas of inefficiency and risk.

Turning Insights into Action

With detailed claims data, the client could evaluate carrier performance and reallocate freight to those accepting responsibility for losses, replacing two non-compliant carriers.

Analysis by commodity type revealed one high-risk product with frequent damage claims, leading the client to engage a packaging engineer to redesign and reinforce the packaging. Claim trends also highlighted gaps in receiving processes at specific locations, which were addressed through targeted training. These efforts led to fewer claim denials and greater recoveries.

Additionally, the improvements across the supply chain gave the client the leverage to lower their insurance deductible, reducing the financial burden of under-deductible claims on their operations.

A Strategic Advantage Realized

Ultimately, the ECIB partnership delivered more than a streamlined claims process. It transformed a reactive function into a proactive, value-generating asset. By outsourcing cargo claims to ECIB, the client gained control over a critical component of their supply chain, reduced losses, increased operational profitability, and uncovered opportunities that would have otherwise remained hidden.

This approach returned significant financial value and freed up internal resources to focus on their core business, with a return on investment of over four to one. This transformation empowers you to take control of your supply chain and generate value from what was once a reactive process.

Partnering for Supply Chain Success

At ECIB, we deliver more than just handling claims. We offer innovative, logistics-focused risk management solutions that help our clients better understand and mitigate the risks in their global supply chains. Contact us today if you’re ready to bring clarity and control to your cargo claims process.