Eikos' expertise in the field of Logistics.

In the context of supply chain management, risk one of the key elements, is all too often played down or receives only last minute consideration using the most conventional of risk financing mechanisms. Eikos view this as a major flaw in Logistics or supply chain training and education today and we have in response to this developed significant expertise in this area. This expertise is made available to customers by way of consultancy or by appointment as the insurance broker to the supply chain manager and or cargo owner.

A process has been developed whereby the entire transportation chain, the parties involved, costs incurred, contracts in place and shipping/ transportation methods used, are analysed assessed and quantified with a view to providing a report in the form of an audit of the risk solutions currently in place and a proposal as to how improvements which will, rationalise, control, and finance all of the risks in the distribution chain can be achieved in order to better control/finance a client's risk optimally.

A primary objective of the analysis and rationalisation is to assist the client to exploit their buying power and synergies which exist within their operations. Experience has frequently shown that often it is the larger companies who have most to gain from a systematic holistic analysis. There is no obligation on the client to appoint Eikos as broker but naturally a fee will be charged for the service if Eikos are not appointed.

Loss of synergies are frequently discovered. The following list gives an indication of typical areas of focus:

• Employment and contracting of third party carriers and service providers 
• Standardised ratings by means of contracts
• The quantification of insurance premiums and levels of protection within the freight tariff charged to the cargo owner, and the feasibility of alternatives and /or efficacy of the adopted options de or exclude insurance premiums within the tariff
• The optimal use of carriers through consolidation of consignments

Again experience has shown that the contractual obligations and the legal liability issues that flow from these agreements between the client and the logistics contractors involved in delivering a product to its final destination are an area of enormous potential risk. Contracts often contain levels of liability cover which are either inadequate, overstated, unquantified or duplicated.

In most cases the client is not aware of the potential consequences or the exposures accepted. The costs however are substantial, adding to the real cost of the client's risk.

Having performed a full assessment, Eikos is then in a position to be able to provide a report on the optimum business solution for that clients specific mobility risks. This solution is structured in order to avoid:

• premium duplication
• runaway claims situations
• incorrect appointment of third party contractors
• loss of group buying synergies
• understatement of costs in the transportation chain

The solution results in the control, management and minimisation of the client's risk cost, financed in the most cost-effective manner. Clients' requirements vary, but typically assessments cover the following elements:

• Product range
• Volumes distributed per carrier, per client, per geographical region
• Value of products distributed, per carrier, per client, per geographical region
• Transport costs per carrier
• Carriers legal responsibilities under the contract
• Quantification of transport costs
• Geographical profile of distribution
• Geographical profile of the client's client
• Loss history per carrier, per client, per product
• Insurance premiums / rating
• Insurance excesses and the related costs thereof
• Carrier Tariffs and any hidden risk or insurance costs
• Commercial Losses

The bottom line; if your company is exposed to any element of cargo distribution, the only way to reduce risk, and increase profitability, is to speak to Victor Vaz or Hugh Reimers the logistics risk specialists at Eikos