Risk in logistics operation
Highly climate sensitive items that need temperature control must also be handled properly in order to minimize or eliminate inventory loss.
Failures to correspond to the standards may cause damage and in turn reap huge cost loss consequences.
It is necessary to focused in details in designing an information system as well setting up business operations structure.
Bear in mind this basic procedural stance while responding to variations in operation for consumption.
What is risk management?
Risk management functions as a first control to screen to analyze and assess risks and to some extent plan in advance countermeasures if such risks arise.
From information planning as well as foreseeable peak warehouse output, it is this kind of management that takes into account the importance of setting up preventive countermeasures, as well as avoiding confusion.
When choosing outsourcers, this is an important point for appraising operation capacity. In daily delivery services, as the rate that traffic accidents may arise is high, an important risk countermeasure is to choose a service company that has countermeasures such as a hedge fund as well as insurance options.
Even when implementing full risk management, natural disasters such as earthquakes may still happen. Quick response and recovery to arisen accidents is crisis management.
In regards to this, it is difficult to assume, but to some extent, it is important to project the scenario by properly preparing and practicing in advance.
High response capability is also a key competitive asset, and also one of the important tools appraising criteria, together with risk management capacity.