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Pinpointing the Risks Your Distribution Company Faces

Hilb Group

When you act as a distributor, you play an integral part in the supply chain. Without your help, goods would not be able to get from one point to another. Of course, all businesses face risks. Understanding the more common risks in distribution business operations can help you minimize loss and keep your operations running.

Common Issues

One of the biggest problems you’re likely to run into is centered around electricity. A power failure, whether due to faulty wiring or a sudden storm, can be a serious issue for distributors. If you transport perishables like produce or dairy, then something as simple as a blown fuse can lead to a situation where thousands of dollars of merchandise have gone bad.

Areas of Loss

The research found on the Hilb Group website indicates there are additional areas to pay attention to when it comes to the risks in distribution business operations. Some of these troubles include:

Accidents experienced by distribution drivers on the road
Theft, both internal and external
Extreme weather patterns

Since you play a vital part in getting goods transported from a point of origin to a destination, you need to focus on how you can minimize loss. Understanding the problems facing your company can be a useful start, but you also need to take action and see success in your future.