CLAIM YOUR CASH: Global Cargo Claims Management
Many companies have decentralized and fragmented claims processes that result in fewer paid claims and a missed opportunity for supply chain optimization. When centrally managed and analyzed, cargo claims can provide valuable insight. However this essential component is often missing.
Consider the case of a global manufacturer of consumer goods. The company wanted to gain control by centralizing the management of claims globally. It became clear that Expeditors could provide a solution that would centralize reporting, reduce expenses, and drive supply chain improvements through claims analysis.
With well over 3,000,000 shipments per year this customer knew there were many more claims outstanding than the 100 currently being reported. A solution was needed to allow all global operations a process to report claims centrally so the financial impact on the organization could be measured.
Expeditors began a phased implementation of a cargo claims management system. During the transition period every operation began filing claims online via Expeditors' proprietary Claims and Risk Management System. Claims were received and immediately acknowledged by the dedicated Expeditors account team. The team investigated the claims, compiled the necessary documents and presented the claim to the appropriate transportation carriers for immediate resolution. As claims were resolved the funds recovered were forwarded to the client. In a 12 month period the claim count increased 2,500%, with recoveries over $1,500,000.
The program realized results that exceeded initial expectations. The actions taken as a result of the analysis led to immediate benefits (see Chart C).
Solutions like this allow customers to save time through efficient processes and focus on their core competencies. This program allowed the customer to implement controls, gain global cargo claims visibility, reduce expenses and generate a return on investment for the project of over four to one. This customer success story is one example of how effective cargo claims management can benefit your supply chain and your bottom line. If you are interested in learning more, Expeditors' Risk Management professionals are here to help.