There are several moving parts to running a distribution business. From warehouses to shipping and delivery, operations must continue to run smoothly. Here are some helpful tips for distributors’ risk management so you can be ready when the unexpected occurs.
Plan Ahead and Prepare
A distribution business can become exposed to some unique liabilities. In the process of storing and delivering goods, it is crucial to have the right plan in place to protect your warehouses, machinery, and commodities. Some of the main disruptions of a business can include:
- Power failure
- Destruction of perishables
If you work with perishables, you want to have a system that alerts you when there is a power failure. Beyond having attendants on the premises, you should implement an alert system for the times when no one is present. A backup generator will also safeguard you from the risk of losing the product if the power fails.
In-Transit Risk Management
Employees and vehicles should undergo initial and routine inspections. Certify your drivers by conducting a background check and review their ongoing performance. Invest in quality vehicles that will last, and schedule regular maintenance to ensure that they won’t break down on the way to delivery.
A good plan consists of preparedness and having the right insurance when things go wrong. A distributors risk management plan is vital for maintaining a successful business.