Shipping, like every other component of business, needs plan B. There are several things that can go wrong with shipping, however much care you invest in it. Reliable shipping partners do have their off days. Weather conditions can wreak havoc in your perfect shipping plan. So, it is important to have contingency plans in shipping.
A dedicated person to handle business continuity
Disruptions can prove very costly to your business so,have one person as a business continuity point person. This point person needs to know what to do in case things do not work in your favour. He/She should be able to handle any disruption to your business. This person should be given the authority to carry out the job and take responsible decisions on his/her own. He/She should be trained to factor risks and dispatch emergency shipments in case there is a delay or loss.
Have a defined list of all possible disruptions to your business
A political crisis in a far off country can create a butterfly effect and result in a shipping delay. Natural disasters like tsunamis, cloudbursts, volcanoes and storms can result in loss of shipped goods or delays. Furthermore, there is the risk of fires, water and chemical spills. Airports can be closed for various reasons when your cargo is stuck inside. Think through the list of scenarios and come up with a game plan that can address each issue. Document this and share with the concerned people. If something goes wrong, your team can jump into action immediately. Detail the steps to remedy, each disruption scenario. This includes making sure that everyone involved, is on the same page about what is to be done. Include details about technology, operations, purchasing, transportation etc. There should be specific instructions for each department.
Know whom and where to ask help
There will be situations where you need to expedite shipments in an emergency, appeal to shipping carriers to help you out using their capabilities before a crisis arises. Apart from speeding up shipments, carriers offer different types of services and have different service records you can make use of. Like with every other business, you need to read through their bouquet and choose wisely. And you need to be prepared with the knowledge before crazy situations arise. Identify mission critical carriers and know whom to contact from their side during a crisis. If you can, meet these people time to time and make sure they understand your requirements.
Understand all your alternatives
You can choose between flights, ships, trains, road trucks as paths for your shipping needs. Obviously, there are several factors like time, cost and urgency to consider before you choose one. In case one fails, you need to have a ready list of alternatives you can re route your shipments through. Expediting shipments involves a detailed study of cost and time again. Take an educated guess as to what works during that particular crisis situation. A client who brings in a lot of moolah to you would probably rank high in times of emergency and you wouldn’t mind investing a particularly high cost to his shipment just once. So, spend time studying tracking ability, around-the-clock availability, special handling requirements, and domestic vs. international capabilities of your shipping partner. In times of urgency, you can ask the carrier to ramp up according to your needs.
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