7 Challenges in Wholesale Operations

Wholesale Operations

Retail stores face considerable risk when dealing with inventory and purchasing. Wholesalers have similar challenges, and the risks in distribution business can put a company out of business if they aren’t prepared. In addition to carrying a comprehensive insurance policy, the team at HILB Group of Florida recommends being aware of the risks in order to form a sound risk management strategy.

Distribution Risks

  1. Property Damage- inventory damage could interrupt your supply to your customers
  2. Supply Shortage- without an ability to stock your inventory you struggle to sell
  3. Product Liability- liability for the sale of a product determined to be unsafe or defective
  4. Legal Penalties- contract fulfillment concerns when accidents or shortages occur
  5. Theft- responsibility for stolen goods by employees or while during transport to retailer locations
  6. Equipment Failure- product damage due to failed transport trucks, cooling systems, heating or freezing equipment
  7. Incident Tracking- lost data due to misplaced or inefficient data tracking and analysis

Finding Coverage

These claims may have some obvious risks attached, but there are also concerns that will be specific to your distribution business. You can mitigate risk through a management strategy, but you can also have a strong defense with a comprehensive insurance plan in place. Promote best practices throughout your company, but also meet with an insurance agent to discuss your coverage options.

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