Supply chain service providers must adopt loss prevention measures if they are to improve their profit margins, warns transport mutual insurer, TT Club.
Perishable trade expert and consultant to TT Club, David Heather said that those transporting perishables must adopt more disciplined loss prevention strategies.
"If claims and losses are not kept under control the high cost of insurance combined with secondary, uninsured costs will have a direct influence on the profits of the operating company," he said.
Heather put forward a seven-point strategy of disciplines and actions, which companies should employ both to help mitigate loss and as proof to insurance companies that they are a good risk.
This included the recognition of high-risk operational areas and contingency plans to cover these; acceptance of a level of self-insurance through deductibles; and a correct assessment of equipment values.
