Unveiling vulnerabilities: A guide to identifying supplier risks during on-site assessments
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While not mandatory, conducting on-site evaluations of your carriers can significantly enhance your relationships and communication with them. Additionally, visiting your carriers’ facilities provides an opportunity to identify potential supplier risks that could impact your company. Here are some important aspects to consider during your next on-site visit:
- Assessment of Training Capabilities
During the initial vetting process of carriers, you ensure their qualifications for the job. Part of this assessment involves examining the proficiency of their employees. When you visit their site, it is crucial to evaluate their training capabilities. Reputable carriers will have dedicated classroom spaces, well-designed training courses, and experienced instructors. Request to review their training curriculum to gauge how effectively it prepares their employees to work with your company. Does the training cover essential areas such as pre-trip inspections, secure cargo handling, and emergency procedures?
According to a 2011 study by the Commercial Vehicle Safety Alliance, common securement violations include failure to prevent shifting cargo and leaking/spilling/blowing/falling cargo. Ensuring that drivers are adequately trained to handle security and emergencies is vital for your business. If the carrier cannot answer basic questions about their training program or if their course lacks substance, you may need to reconsider if they are the right fit for your company. The better trained their employees are, the lower the risk they pose to your business.
- Proper Storage and Inspection of Equipment
Another critical risk factor to consider during on-site evaluations is how carriers store their equipment, spare parts, and securement tools. The manner in which carriers handle excess equipment can provide insights into their attention to detail and the importance they place on maintaining their on-road equipment in excellent condition. While on-site, observe their inspection areas, which should be well-lit and equipped with spare chains and straps to replace defective securement materials.
It is essential for carriers to take all necessary measures to minimise violations and damage during hauls. Apart from cargo securement, evaluate how well the carrier maintains its equipment. Are tractors and trailers regularly inspected for potential damage? Are they parked in an organised and safe location, with clean repair areas? How promptly are mechanical issues addressed? Are spare parts well-organised and easily accessible for mechanics? Carriers that neglect equipment maintenance can pose serious risks to your company. Failure to secure cargo or properly maintain their fleet can lead to increased breakdowns and violations, directly impacting your business.
- Visual Inspections of Equipment
In addition to storage practices, assess if your carrier keeps its fleet up to date and safe. During on-site evaluations, take the opportunity to conduct your own assessment of the carrier’s equipment for physical damage.
Identify any factors that could lead to supplier errors and potentially jeopardise your business. Check the tires for adequate tread and proper inflation, inspect trailers for internal and external damages, and ensure that securement equipment is functioning correctly. Evaluate the cabs to verify driver safety and the absence of excessive distractions. Ensuring that carriers properly maintain their fleet can significantly reduce the potential for errors. Therefore, it is crucial to inspect the carrier’s equipment on-site to protect your business.
- Compliance with Regulations
Another way to mitigate risk during on-site evaluations is to assess how carriers handle compliance. Do they maintain organised and up-to-date logbooks? Do they have a thorough understanding of their drivers’ hours of service and actively work to avoid violations? Have there been any recent drug or alcohol violations? Are there any signs of drugs or alcohol on-site?
By evaluating carriers for compliance issues, you are effectively communicating your company’s values and can identify risky behaviours before they have a dramatic impact on your operations.
Overall, on-site evaluations provide an opportunity to gain deeper insights into your carriers’ day-to-day practices and determine if they align with your company’s requirements. It is extremely important to maintain a positive relationship with suppliers. You may read on Supplier relationship management: do’s and don’ts for effective strategic partnerships to learn some crucial do’s and don’ts to consider when engaging in strategic supplier relationship management.
If carriers lack an effective training program, fail to store or maintain their equipment properly, or do not adhere to compliance protocols, it may be necessary to explore alternative options for your transportation and logistics needs.
