Looking for an easy way to reduce supply chain costs? A good place to start is with your freight claim procedures. Without getting into the more complicated details of freight claim management, here are 5 simple filing tips that you can use right away.
1. File Your Freight Claim as Soon as Possible
The last thing that you want is for your freight claim to be denied due to time-barring. You have 9 months to file most freight claims.
However, in the case of concealed damage claims, you need to file within 15 days – otherwise, you must prove that the damage didn’t happen after delivery. In the case of air carriage damage claims, you must file a claim within 7 days!
Even if you have a deadline of several months, you want the carrier to inspect the damage as soon as possible, especially in the case of concealed damage claims or perishable goods. So cover yourself and file your freight claim as soon as you can.
2. Claim All Eligible Freight Claim Costs
When filing a freight claim, companies will typically claim only the cost of the damaged goods. But don’t be afraid to claim your other expenses. Did your staff spend time sorting through damaged products? Claim your labor costs. Do you need to dispose of the product? Claim any disposal expenses that you incur. There are many expenses that you can claim beyond the cost of the goods themselves.
3. Take Photos
Photos may technically be an optional item for filing a claim, but if you want your claim to be successful, photos are a must! Take photos of the damaged item from different angles. If possible, take photos of the item as you unwrap the packaging and while it is still in the trailer. This will help to prove that the damage was caused by the carrier.
Another reason to include photos? If you have photos that clearly support your case, the carrier is more likely to waive the inspection.
4. Include All Necessary Documentation…The First Time
Freight claims are already a hassle for both you and the carrier. The last thing you want is the carrier to reject your claim because you didn’t include the necessary documentation or follow the correct steps for filing your freight claim. Here are the documents that you should definitely include:
- Original shipment invoice
- Invoice showing the value of the product that you are filing the claim for
- Invoices for replacement, restoration, etc.
- Delivery receipt (copy is fine)
- Bill of lading (copy is fine)
5. Get It In Writing
Make sure that you keep records of all of your communications with your carrier. If your carrier tells you over the phone that they plan to waive the inspection, record the name of the person that you spoke with and the time that you spoke with them. Then email your carrier to confirm, and request a confirmation back. Don’t forget to save your emails.
About TranSolutions Inc
TranSolutions Inc has been providing freight claim management software since 1996. Their software, MyEZClaim, allows shippers and 3PLs to streamline their filing process and mine their data to identify the root causes of freight claims. TranSolutions is proud to work with Fortune 1000 companies such as Nike and Hewlett Packard, as well as 3PLs and small businesses. For more information and resources on freight claim filing, visit TranSolutions’ blog at www.TranSolutionsInc.com/blog.
Posted by LeanCor Supply Chain Group
LeanCor Supply Chain Group is a trusted supply chain partner that specializes in lean principles to deliver operational improvement. LeanCor’s three integrated divisions – LeanCor Training and Education, LeanCor Consulting, and LeanCor Logistics – help organizations eliminate waste, drive down costs, and build a culture of continuous improvement.Facebook LinkedIn Twitter Google+