BY USING certificated ISO suppliers all along the logistical chain, suppliers can eliminate some of the controllable risks that might otherwise escape attention, and in so doing they will avoid costs and inconvenience that arise from losses or damage that could otherwise be incurred.
That's the view of Tony Hussey, an ISO certification consultant, who believes that an ISO status gives confidence both to management and customer that a quality management system has been developed and is being followed. ISO 9000, for example, provides a holistic business approach for all functions and at all levels.
Hussey believes that given today's level of sophistication of the supply chain, most risks can be covered by means of insurance, and to many that is the extent of cargo risk management. Insurance, however, although indispensable, is costly, and is also only one facet of cargo risk management that companies should be considering.
Using suppliers all along the logistical chain, which have taken the trouble to develop, document and implement a quality management system to ISO standards, will give confidence, reduce claims and save costs in the long term.
Registration as an ISO certificated supplier and use of similarly registered sub-contractors and suppliers should form part of any organisation's risk management plan.
ISO certification is a big step towards managing cargo risk
12 Feb 1999 - by Staff reporter
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