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Carrier Risk Management Checklist
Carrier Qualification Process
Verify carrier's authority to ensure they are legally permitted to operate.
Check carrier's safety rating and safety history through the Department of Transportation (DOT) records.
Review insurance certificates and ensure they meet the minimum required coverage amounts.
Ongoing Carrier Monitoring
Conduct periodic reviews of carriers’ safety scores and compliance status.
Monitor carrier performance metrics such as on-time delivery rates and cargo claims history.
Update carrier insurance information regularly to confirm coverage is current and sufficient.
Contracting and Legal Compliance
Ensure all agreements with carriers are formalized in written contracts.
Review and incorporate carrier liability and indemnification clauses.
Stay informed about industry regulations and ensure all contracts are compliant with applicable laws.
Carrier Performance Evaluation
Establish key performance indicators (KPIs) to measure carrier performance.
Implement a carrier scorecard system to track and compare carrier metrics over time.
Solicit feedback from internal stakeholders and customers regarding carrier service levels.
Risk Mitigation Strategies
Develop a contingency plan to handle disruptions with primary carriers.
Diversify the carrier base to mitigate risk of overreliance on a single carrier.
Conduct regular risk assessments to identify potential risks associated with carrier operations.
Technology and Data Analysis
Utilize Transportation Management Systems (TMS) for better visibility and control over carrier operations.
Leverage data analytics to identify trends and make informed decisions about carrier management.
Ensure cybersecurity measures are in place to protect sensitive transportation data.
