The e-commerce industry is booming since buying products online is convenient and comfortable. As more and more customers turn towards e-commerce platforms for their purchases, the competition between brands will only increase. Companies are finding ways of saving costs, expediting shipping and reducing turnaround times. However, such measures can easily increase the risk of damaged goods. Research shows that goods-in-transit face several problems that exacerbate the risk of damage during transport.
- Around a third of goods lack effective protection against damage.
- About one-third of goods-in-transit get ripped, crushed or dented.
These troubling numbers show the importance of road haulage insurance as well as goods in transit insurance.
The problem is that if you are relying on 3rd party logistics for deliveries to customers, then there are few options besides changing the service provider. Sadly, these problems are endemic in the logistics sector.
To improve customer experience, both suppliers and logistics companies must agree to implement measures that will mitigate the risk of damage to goods-in-transit.
You should spend around 5% of the product cost on packaging to ensure that it arrives at its destination in pristine condition. This is especially vital for overseas deliveries.
You should also take note of the conditions that the goods will be subjected to like rough handling, cold, heat and moisture. Such consideration can guide you on how to package your products more safely. For instance, bubble wrap can secure fragile products, pallet pads are effective at protecting against dirt and dust while waterproof wrapping can safeguard against moisture.
Equally important is selecting a package of the right size for your product so that it remains safe during its journey.
You can add extra material for added protection to goods in transit. These materials work by preventing movement and padding goods against shock, impact and vibration. Brands can make use of foam padding, corrugated cardboard, packing peanuts and kraft paper for securing goods inside their packages. To use the right amount and kind of padding material, you should pay attention to the weight and fragility of the product in question.
To secure bigger shipments, strong pallet wrap and dunnage air bags can prove to be very useful for preventing unnecessary movement that can damage goods.
You can choose from several materials for enhanced security. These materials can keep your goods safe by averting unneeded attention and mitigating the risk of theft, especially if goods are of high value. Colored security wraps can prevent people from seeing inside and can thus keep valuable items safe. Impact warning labels as well as container seals can also come in handy and deter theft. If there has been any kind of tampering or attempts to open the package, you will come to know immediately with these materials.
Companies and brands can also reduce the risk of losing small goods by leveraging tracked postage, which will keep them informed of the goods’ location.
Security seals will keep the customer informed about any tampering attempts. If the seal is intact, then the customer can be reassured that the products inside are safe from tampering.
You should write a note in bold letters on the package instructing the customer to accept the package and sign the receiving document only if the seal is intact. Customers should refuse accepting the package if the seal is broken. The use of such seals can help you with insurance claims.
The right kind of labelling can improve safety for goods-in-transit. For instance, you can attach labels indicating that the goods inside are fragile; hence, the package needs cautious handling. You can also stick labels showing that the package should not be turned upside down, which can potentially damage the content inside. Likewise, there are labels for showing that the package must be kept away from excessive heat, moisture and cold, among other detrimental factors.
Labels are essential for instructing logistics personnel as well as end users about how to safely handle the shipment package to keep it safe. These labels often have simple diagrams in addition to written messages so that others can decipher them at a glance. For instance, fragile goods can have a label showing a drinking glass indicating fragility.
Labels also help with another matter of paramount importance: safety. Goods that can potentially harm handlers should be labelled as dangerous. For flammable goods, you can attach a label showing flames. The right choice of labelling can alleviate the risk of accidents and injuries to those handling them. It may also be very important if you are faced with a lawsuit for accidents or injuries involving your goods.
Insurance is vital for mitigating the financial losses that come from damaged goods. In fact, insurance came into existence to safeguard international trade and to make it possible as well as feasible.
With the right insurance policy, you will be able to cover your losses should there be any damage to your goods even after taking necessary precautions.
Insurance might seem to be an unnecessary expense to the uninitiated; however, experienced entrepreneurs know that insurance can save a lot of money in the long term by compensating you for losses that inevitably occur no matter how careful you are.
There are several kinds of insurance policies that can benefit traders and merchants. You can choose insurance that is relevant to your shipments.
The insurance of shipping companies may not be enough for reimbursement in case goods do get damaged. The shipping company is typically not liable for paying you the cost of damaged goods. Under international rules, the carrier may also be exempt from compensating you under certain conditions.
Even if the carrier does happen to be liable for the damage, it may only have to pay a small amount of the loss incurred.
Thus you will have to rely on the right insurance coverage that will protect your goods from accidents and mishaps that occur inevitably no matter how caution is exercised. Insurance benefits can help to better cope with and recover from financial losses due to damaged goods.
Whether it is road haulage insurance or goods in transit insurance, we can help you to select the most appropriate insurance coverage for your shipments. For more information, contact us today.
Tony Jewitt is the director of Avis Insurance, a UK based leading truck insurance company. He established Avis Insurance in 1983 as general Insurance & mortgage brokers and started to focus completely on truck and haulage insurance markets from 2016. He has extensive experience in the insurance industry and is passionate about presenting his clients with customised solutions.