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Driving Cargo Prevention with Facts: : How Risk Analysis Brings Light in the Dark Leading to a Pro-active Supply Chain Risk Management
Type
conference paper
Date Issued
2010-07-25
Author(s)
Bode, Christoph
Abstract
Transport and logistics operations are vulnerable to many types of risks due to an increasing dynamic and structural complexity of today's supply chain networks. Global distributed sourcing and production leads to more transported goods in general but also to more high value cargoes being shipped around the world. However, detailed information about the transport condition and integrity are not available in the end-toend chain as e.g. a sealed container can be considered as "black box". In this paper we firstly analyze claims data from one of the largest transportation insurance providers in Europe. The sample consisted of 7,284 claims made in the recent four years (2005 - 2008) as a result of incidents in transportation. Through a variance analysis, we demonstrate differences among industries in terms of average losses, transportation mode and premium coverage. Secondly, based on these findings an active risk management framework will be developed using sensor-telematics and localization technologies to increase visibility and transparency in supply chain operations fitting industries' current needs. Findings from this paper provide facts on how prevention can be implemented in logistics. The results give practitioners in the supply chain management and marine cargo insurance industry a deeper understanding of current transportation risks and how to address them by creating innovative value-added services to differentiate logistics and insurance solutions effectively from competitors.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
SoM - Business Innovation
Refereed
Yes
Book title
Etudes et Dossiers. No. 369
Publisher
The Geneva Association
Publisher place
Geneva
Volume
Working Paper Series 369
Start page
10
End page
27
Pages
18
Event Title
2nd World Risk and Insurance Economics Congress (WRIEC)
Event Location
Singapore
Event Date
25.-29.06.2010
Subject(s)
Division(s)
Eprints ID
68529