An impact assessment can be used in many different industries. It is often used to describe how one course of action will affect the outcome and is a great way of building a plan for the future in all fields of life.
However, impact assessments are also starting to play a critical role in the logistics service industry. This is not just a case of saying ‘If I drop this box the goods will arrive damaged”.
While that can be classed as an impact assessment it won’t help the courier service to improve the quality of their delivery process.
How an Impact Assessment Relates to Logistics?
Moving a parcel from one place to another requires coordination and careful handling. Unfortunately, in many cases, this procedure does not go to plan and the customer ends up with a parcel that is damaged. The product is not fit for purpose.
This then leads to an issue. The courier service will blame the supplier in order to avoid having to pay for the damaged item. The supplier may claim off the insurance but they’ll want to know who actually caused the damage.
In order to protect their reputation, the supplier will send a replacement to the customer and will end up footing the bill for the short term. If the matter is not resolved the supplier ends up footing the bill forever. That can seriously affect the bottom line.
That makes it important to find a way to deal with the damage done in transit and apportion blame.
How does Impact Assessment work?
Shockwatch has created sensors that are attached to any parcel you send. These sensors will tell if the parcel has been tilted past a certain angle or dropped. They can even tell if the parcel has been subjected to the hot or cold outside of species boundaries.
The delivery firm has an incentive to take more care of the parcels. If they arrive damaged the impact assessment will testify to how it has been mishandled and even when.
The customer can check the sensors on arrival to confirm that the parcels have been handled properly; if it hasn’t they can reject it and the courier company will need to foot the bill.
If the sensors are fine and the product is damaged but not the box then the supplier is at fault.
Shockwave impact assessment will help to ensure parcels are delivered in good condition and help to apportion blame. This makes it easier for the right insurance company to pick up the tab and protect the bottom line of the supplier.
Impact assessment may be relatively straightforward technology but it has the potential to transform the logistics industry and protect the interests of suppliers. In turn, this could expose the companies that are not sending quality products and actually eliminate them from the market.
That’s a huge impact on the market and shows just why this technology is so important to all elements of the industry.