Logistics Claims....can BPO help?
The common refrain when it comes to managing claims due to damage during transit, is that the process is time consuming and returns meager for the effort expended. Here's where BPO could step in and provide support.
In most discussions on transportation management, the common refrain when it comes to managing claims due to damage during transit, is that the process is time consuming and returns meager for the effort expended. Deciding to investigate this a bit further, I asked one of our clients, a leading manufacturer of packaging material, as to the major concern he had about logistics claims that had a disproportionate impact on business. His reply was intuitive and covered two basic points:
- Valid claims from a customer being rejected leading to a customer dissatisfaction
- Invalid claims being accepted and paid out resulting in revenue loss to the company
Obviously the first point on customer dissatisfaction was the major concern since the low value of invalid claims being paid out made revenue loss minimal compared to the risk of valid claims being rejected. For instance in this particular case, 65% of logistics related claims were paid out and the remaining rejected since they were FTL consignments which typically in the US are not liable for claims.
A sore point that was bought up was that this 65% of the claims involved time consuming work in terms of creating claim forms, coordination with customers and carriers to obtain POD (Proof of Delivery), required photographs of damaged material and all other collateral to investigate and validate a claim. Typically considering the small amounts involved, carriers/customers ignored these requests but wanted a quick resolution either way.
Here's where BPO could step in and provide support in the processing of a logistics claim
Though the volume of claims would be low and not justify the placement of resources dedicated to managing logistics claims, this could be made a part of the order management and fulfillment team, thus providing end to end services. Benefits would be better management of claims with higher recovery rates from carriers and lower customer dissatisfaction in the claims handling process