Sunday 23rd Oct 2016 - Logistics Manager

Loss prevention a must for perishables

Transport operators dealing with perishable goods must adopt more disciplined loss prevention strategies, says David Heather, perishable trade expert and consultant to the TT Club.

Speaking at the Intermodal Transport & Logistics Conference in Rotterdam, Heather said: “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 highlighted a milk and dairy produce distribution company as having suffered costs of insured and uninsured losses equivalent to 1.8% of its operating costs in one year. The low margins inherent in the transport sector, meant the losses equated to some 37% of the company’s profit.

Heather propsed a seven-point strategy of disciplines including recognition of high-risk operational areas; acceptance of a level of self-insurance through deductibles; and correct assessment of equipment values.