Utilizing Claims Data to Save Money

When most logistics managers think of freight claims, they think of recoverable money from the carrier liable for damaging or losing freight. And while the most apparent reason to have an effective claims program is to recover money for the loss or damage, Transit Specialty takes it a step further. Our freight claims management program increases monetary carrier recoveries and provides valuable tracked data highlighting actionable improvement opportunities throughout the supply chain.

 

Some of the valuable shipment information and item-level data insights include the following: 

 

  • Ship date 
  • Shipper
  • Consignee
  • Claim date
  • Bill of lading  

These data points provide information on which customers and locations are reporting the most cargo claims and which are not reporting any. These reports bring up the following questions:

 

  • Which products get damaged the most, and on which lanes?  
  • How do the various carriers perform against one another regarding claims ratio? 
  • What are the leading causes of claim denials?  

These insights provide a clear and objective picture of a supply chain that helps influence improvements like shipping/receiving procedures, carrier or lane selection, and packaging enhancements. 

 

In addition, TSG’s claims management solution offers the ability to calculate a “claim ratio,” a combination of cargo claims data and shipment data. The cargo claim ratio is a key performance indicator that can help an organization dial its logistics operations and maximize its risk management portfolios.

 

If you are interested in maximizing cargo claim recoveries and improving supply chain performance, TSG can help. Reach out to our team today to learn more about the benefits of claims data and analytics.