In transportation and logistics, we frequently hear that “risk reduction” is a top priority. We agree that this should be a focus for any company, so we were surprised to learn from Logistics Management that many companies are not as actually as proactive as they'd like to be about risk management.
What is that practice? It’s called stress testing. Stress testing is when you conduct simulations of certain scenarios to identify what continues to work in that scenario and what breaks or needs attention. Stress testing is often discussed in our industry as a function of measuring supply chain resilience. We decided to use our expertise to take this same lens and apply it more specifically to intermediaries.
Intermediaries, 3PLs, Freight Brokerages, Managed Transportation Providers,
You should also be taking a proactive approach to risk management. Don’t wait until your top customer decides they are only working with asset-based companies moving forward, thus causing your brokerage to have to scramble to try to make up for that revenue loss.
We know it’s not fun to have to think about worst case scenarios, but you know what’s worse? Being blind-sighted by an unfortunate event and having to figure it out in the moment. Most companies unintentionally wait for disaster to strike and then are forced to put out fires. We are advocates for taking a proactive approach to risk management.
Hear CarrierDirect Industry Consultant, Lisa Bruno, chat with Joe Lynch about Risk Management for Intermediaries on this episode of The Logistics of Logistics Podcast.
This guide discusses some of the main scenarios that can cause serious bottlenecks and issues for businesses like yours. We created this guide to help you assess your company’s weak spots, identify where contingency planning is necessary, and to provide pro tips for minimizing and mitigating risk.
Download our Risk Management Guide and prove that you are proactive!
Work smarter now to avoid having to work harder later.
Benefits of Risk Management and Stress Testing:
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