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Chaos and confusion are recipe for theft, warns insurer
[ May 28, 2024 // Chris Lewis ]Transport insurer TT Club says that a more systemic approach to warehousing could reduce freight thefts. It says that analysis of past claims shows that risks to goods where warehouses are confused and disorganised and that inventory management should be paramount.
TT’s Josh Finch said: “Inventory management often runs quietly in the background until something goes wrong. Small issues can quickly turn into large and costly errors if they are not observed and rectified.”
Interfaces between various software systems should ensure that actions taken in one are recorded in the others. Breakdowns in communication can be difficult to identify but may lead to costly errors, says TT.
The ultimate goal is to provide full visibility of goods as they move through the supply chain. A well-designed system should systemically mirror all physical movements of goods and be particularly focused on circumstances where visibility and therefore traceability break down. Most commonly this occurs when a user fails to adhere to the correct process, but gaps in the process must also be considered.
“Stock that is not traceable is at risk,” Finch concluded.
Tags: TT Club