Ray daSilva from IAM Mobility Exchange (IAMX) talks about understanding and managing some of the risks associated with the trading partnerships that are so vital to our business.
Like most industries, the moving business cannot exist without trading partnerships. The term trading partner can include our customers as well as the complex network of service providers that we engage daily to deliver our services. Entities may shift roles, too. They may be our service provider on one transaction and our customer on the next.
Risk
We will limit our discussion here to two main types of risk associated with trading partnerships:
- Financial Risk;
- Reputational Risk.
Financial risk is not just about managing the credit risk of whether we will be paid on time or ever; it also applies to the risks related to operational issues which can tilt a transaction into a loss. Most of us have faced issues related to import shipments which incur detention, demurrage, inspection, penalties and other costs due to improper documentation or instructions from our origin trading partner, as just one example.
As important as guarding our financial health, we also must protect our professional reputation. The strongest, most sustainable businesses are built on a foundation of customer satisfaction, one transaction at a time. A good reputation is hard to earn but can be easily lost if we associate our service with the wrong trading partners.
Managing risk
So, wouldn’t it be great if there was a reliable data source, a directory which could help us evaluate these risks before engaging with trading partners? ...
Photo: Ray daSilva with a vehicle bearing the IAMTrusted Moving Company programme insignia.