Freight damage will occur. Even with the best-laid plans, cargo damage mitigation strategies, and careful handling, products may still arrive damaged. Unfortunately, freight claims management remains an area of logistics subject to wide interpretation and variance.
In other words, each carrier may have dozens, if not hundreds, of rules regarding the filing of freight claims. And, while international standards exist for the filing of claims for ocean, air, and over the road transport, carriers have the liberty to extend these timelines. Instead of trying to hope for the best, shippers need to know the misconceptions surrounding claims management, how to mitigate risks, proactively manage claims, and achieve a timely resolution with a TMS and connected systems.
Misconceptions Surrounding Freight Claims Management
Mitigating Risks Remain Crucial to Effective Claims Management
How to Proactively Manage Risk, File Claims, and Resolve Issues
- Improved, damage-resistant packaging.
- Checking labels for accuracy.
- Working with carriers to avoid the “rush” during pickup and drop-off.
- Properly completing documentation.
- Use software-as-a-service systems, including a TMS, to connect your whole supply chain and capture the necessary data around each freight shipment. This makes it much easier to process the freight claim if necessary.
- Leverage automated alerts and exception algorithms to address any deficiencies or delays, preventing a premature claim.
- Take advantage of predictive analytics to recognize when things may go wrong.
- Collect all necessary documentation, including photos of the damage, original invoices, estimates for repairs (if applicable), and proof of delivery.
- File the claim using the carriers’ or service providers’ online claims’ portals.
- If possible, file claims within your integrated carrier-connected TMS.
- Consider outsourcing the freight claims management side of logistics.
- Track the time. Chris Cotter, via Inbound Logistics provides these guidelines for submitting a claim:
Boost Your Freight Claims Management Processes With the Right Partner
Proactive freight claims management will reduce the impact of damage and losses to your supply chain. Attention to detail and following the tips listed above will help shippers and carriers work together to reduce preventable issues. Meanwhile, a standardized, digital process for managing freight claims will eliminate the hassle and burden of manual management and streamline the process. At the same time, automated systems could process claims and complete reimbursements, further reducing the impact of such claims. Depending on the size of your organization, developing such systems might be out of the equation. Fortunately, you don’t have to rely only on your internal resources. By partnering with MercuryGate you are able to take advantage of the resources and experience necessary to help mitigate, process, and resolve freight claims. And, with MercuryMyEZClaim, you have the added experience of the world’s first freight claim management software.