Welcome to Insights from the Inside, where we spotlight the experts at EIMC who bring strategy, clarity, and deep technical knowledge to every challenge! In this edition, we turn to Luciana Capone, Marine Consultant, for a focused discussion on Stock Throughput.
Q: How do you define Stock Throughput claims, and what makes them unique compared to other types of cargo claims?
A: Stock Throughput claims pertain to losses to goods from the beginning to the end of the supply chain. They are unique compared to cargo claims since they can relate to all aspects of the supply chain, from production to delivery, including transit and storage of the goods.
Q: What are some of the most common types of claims filed under Stock Throughput policies, and what typically causes them?
A: Common types of claims under Stock Throughput policies include, but are not limited to, physical damage, water damage, spoilage, contamination, and theft. Causes can range from extreme weather events and natural disasters to temperature fluctuations, handling incidents, and more.
Q: What best practices can businesses adopt to better manage inventory risk across global supply chains?
A: The best way to manage stock and inventory risk is through loss prevention and assessment of the perils that may lead to claims. This includes implementing security protocols, establishing efficient and clear Standard Operating Procedures for inventory, maintaining proper paperwork, training personnel, carefully vetting logistics partners, and developing a thorough understanding of the entire supply chain.
Q: How is technology improving the way companies track and manage goods covered under Stock Throughput policies?
A: The use of new tools is helping many businesses improve the handling of stock and inventory. Examples include GPS devices, drones, inventory systems for improved traceability, and enhanced security measures such as gated areas and 24/7 on-site security staff.
Q: Where do you see the biggest opportunities for AI to improve Stock Throughput risk assessment or claims response?
A: In my opinion, AI can help streamline inventory processes and be used to analyze shipment documentation, thereby preventing or identifying fraudulent claims.