There are risks in any type of business, and distribution and warehousing are no exception. Research into proper risk management strategies for distribution facilities reveals several common risks that must be overcome.
Common Types of Risks Faced by Distributors
Vehicle Claims involving a rear impact are the most common type of vehicle claim within the industry. Failing to observe clearances, backing into stationary objects or vehicles and striking objects also appear.
Worker injuries resulting in a worker’s comp claim often result from repetitive lifting/overexertion, exposure to a chemical or other irritant, and slip and fall accidents.
Product loss from theft or damage can have a substantial financial impact. Internal theft is the most common cause, while fire, flooding, and power failure can also lead to product loss in some cases.
Property damage due to natural disasters, burglary, and fire can be minimized with increased security and proper storage procedures.
Ways To Manage Risk in Distribution
In addition to addressing them specifically, there are general risk reduction methods you can implement to limit your liability and help ensure financial stability. These include:
- Training programs to educate all workers on proper procedures
- Safe driver programs for all transportation workers
- Installing proper safety equipment
- A comprehensive business insurance package tailored to the distribution industry
- Proper storage of supplies and potentially harmful products
Risk management strategies in distribution should include appropriate insurance coverage, employee training, and accident reporting processes. A well-thought-out safety plan including these components can help reduce risk and manage liability.