This month, in collaboration with the TT Club, we share a new best practices sheet. This time, we focus on due diligence: Do you properly investigate your subcontractors?
As part of the global supply chain, we often interact with subcontractors to deliver our shipments. Researching your customers and subcontractors has never been more important. Acting in haste increases risk. Major pitfalls include poor service, cargo theft, delays, cargo damage and reputational damage.
How to mitigate these risks?
- Generate clear and documented procedures
- Be organized and check all details
- Check with the contractor and consult with industry colleagues.
- Guarantee protection with adequate insurance
- Check, check and recheck
- Approve, audit, escalate and watch out for red flags.
Remember: The more checks, the fewer claims. If something seems too good to be true, it probably is!
