6 Tips On How Digital Risk Management Can Benefit Shippers And Safeguard Cargo

The business of shipping comes with a myriad set of risks in its day-to-day operations including cargo theft, damage, compliance issues and delays. While some of these risks have been around for years, the speed at which the industry has and is evolving, it is necessary for the industry to adopt a few digital risk management tools to mitigate and manage these risks.

 

The evolution of shipping has brought some digital technologies along with it, allowing companies to tackle these risks and challenges more effectively, minimizing disruptions and ensuring safe transport of goods.

 

By digitizing key processes, digital platforms enable shippers and carriers to streamline operations, documentation, payments, funds receipt, manual errors, achieve effective  communication and create transparency across the entire logistics chain.

 

Digital platforms like ODeX also help to automate processes and ensure that documents are in order, reducing the risk of delays due to missing paperwork or compliance issues.

 

Here are 6 tips on how digital risk management can benefit shippers and how you can proactively safeguard your cargo.

 

1)      Visibility and real time tracking

 

Shippers can greatly reduce the risk of loss, theft and other irregularities in the movement of the goods by having real-time visibility of the goods at each stage of the journey. Digital solutions make this easy with their  real-time tracking and automated alerts, which allow shippers to address potential issues and mitigate risks before they become serious.

 

2)      Reducing or avoiding manual errors

 

Manual handling of documents in this age, especially the recapturing of key information at various stages, is the key reason for delays, errors and potential compliance issues. Digital solutions like ODeX automate data entry and document verification so the paperwork is accurate, complete and minimizes the risk of fines.

 

3)      Document Management and Compliance

 

Shipping is highly regulated, with different countries having different requirements especially in customs, ports and other compliance in addition to international regulations. Therefore, a centralized  digital repository of documents is essential to efficiently manage the various documents involved and exchanged. Digital platforms enable automated checks against some of the regulations and this helps shippers arrange their documentation effectively.

 

4)      Efficient communication and collaboration

 

Many of the delays that happen in the supply  chain is due to lack of communication. Digital platforms allow for efficient communication, collaboration and data sharing. These options help shippers to quickly respond to unexpected challenges which helps in reducing delays and potential risks. Digital platforms also offer predictive analytics to alert shippers of potential risks based on historical data and trends such as weather, port congestion etc.

 

5)      Audits

 

Digital tools can also be used to create detailed audit trails for each shipment and to track all actions from document uploads, payment confirmations, statuses and receipts. This transparency allows all parties to see who is accountable for which actions in case disputes or insurance claims arise.

 

Ancillary technologies

 

In addition to payment and documentation technology, there are also other ancillary technologies like weighbridge certification etc.. These  features help shippers to avoid overloading, which is not only a regulatory issue but also a significant safety risk.

 

Overloaded containers can lead to accidents, damage, and hefty fines. By leveraging ODeX’s Weighbridge Integration, shippers can ensure their cargo adheres to weight regulations, preventing unnecessary risks along the supply chain.

 

Conclusion

 

Adopting digital risk management solutions enables shippers to proactively address challenges in logistics. From improved visibility and compliance to enhanced security, these tools streamline operations and help protect cargo throughout the supply chain.

 

As shipping evolves, integrates and interconnects with various stakeholders, the potential for risks also increases due to the interactions. Digital solutions like those offered by ODeX play a vital role in managing these risks by enhancing visibility, security, and compliance.

 

By embracing digital risk management, shippers can proactively safeguard their cargo, streamline their operations, and ensure the safety of their shipments.. For any company invested in secure and efficient logistics, investing in digital risk management is a strategic move that pays off in the long run.