Bringing a new company into the world can be a stressful experience but one thing you should not have to be fearful about is the transit of your products. Your company needs to think of the infrastructure around you and how you want to get your product to the customer. Delivering products to people's door via your own delivery courier can have substantial risks if not properly insured your business and customers are in a vulnerable position.
Delivering your products to customers is vitally important & requires a degree of security behind it. In order facilitate this, proper insurance needs to be enacted. The benefits of insuring your couriers far outweigh the costs, with potential reputation damage & costly replacements for customers. A company's image is crucial to its future as a negative brand image can lead to negative effects on customer retention and further damage profitability, if a customer does not have faith in a company's ability to deliver a product then they obviously not purchase with them in the future.
When in the process of delivering products to consumers there is the potential for road incidents damaging your products, insuring your van and its contents can soften the potential financial implications brought about by damage, and mitigate further costs.
Logistics is vitally important for any company and ensuring safety for goods in transit is key to a business's success, if your products cannot reach your consumers then what is the point for them purchasing? Even large companies can suffer from poor distribution networks and failure to deliver e.g. KFC & DHL earlier this year, even the mighty can suffer from poor logistics management so ensuring your fleet is insured makes logical sense.
As mentioned before a prime example from this year of poor logistical management is KFC and DHL’s fiasco, this led to a limited menu for a period and store closures as they simply did not have the product to sell. Improper management of the logistics network and poor planning of demand led to a serious situation which impacted on KFC significantly in the UK. However, in the realm of E-commerce it is ultimately easier to predict demand and plan accordingly, but the cost effectiveness of internal vs external courier differs business to business.
Distribution In the future
Moving forward there is a need for organizations to solidify their distribution network and minimize the risk to the business by insuring their good for transit. The risk of theft, damage or general misplacement of products in transit can be damaging for both the businesses profits and a business's reputation which insurance can ultimately attempt to reduce and improve and nurture a more profitable system through piece of mind and security of products whilst in transit.