Transportation risk in the supply chain is ever present. Losses incurred in this space often impact the bottom line, and at their worst are catastrophic. While federal oversight of the transportation industry, led by the FMCSA, has made strides in improving overall safety on the road, there still are many risks that shippers are exposed to and must manage themselves -especially in the absence of a strong national hiring standard.
It is critical that supply chain leaders focus on and assign resources within their organization to innovate in the risk management space. In this Hot Topic - written by Lorin Seeks, Director, Quality and Compliance at Convoy learn the varied approaches to risk management. We believe the best risk management programs include two key attributes:
1. They use data to inform carrier selection requirements and quality thresholds.
2. They use data and technology to collect data and to automate decision making in real time.