Running a distribution business requires obtaining goods from one location whether domestic or overseas and distributing it to another company. With all the moving parts in place, there are common risks of distributors that need to be mitigated. Here are a few ways to lessen the impact of these risks.
The number one way to lessen the financial impact of theft, accidents and power failures is by insuring. Companies like hilb group of Florida offer a variety of insurance policies that specifically address these risks. A commercial auto insurance policy covers the trucks that transport goods. Workers compensation covers employee accidents. Warehouse insurance protects the goods stored in your warehouse.
Internal crimes or employee theft can cost your company tons of money mostly because these thefts are small and often go unnoticed. Security cameras, alarm systems and regular checks can decrease the amount of employee theft. Alarm systems can also be set in place to detect temperature changes for perishable items.
Before hiring, run a background check and speak with references for all potential employees. This can help you determine whether or not the person really is a good fit for your company. A good driving record means there is less chance the employee has an accident in your vehicle.
These are only a few of the ways you can cover the risks of distributors. An effective risk management strategy and these tips can decrease the financial impacts of a loss.