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Chapters 9-11 Summary

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Chapter 9 Summary

Majority of Chapter 9, Transportation Risk Management, speaks of the Risk Management Process. The Risk Management Process breaks down into four different categories or steps. These steps, not in any particular type of order, include Risk Review and Monitoring, Risk Identity, Risk Analysis and Risk Management.
In step 1, risk identification, the goal is to capture as many transportation disruption risks as possible. Some of the techniques that are used for risk identification include brainstorming, interviews, surveys, historical data and documented knowledge. Brainstorming usually can be identified as meetings that are held with knowledgeable members that participate in conversations that create new thoughts and ideas. During brainstorming, they take the original ideas and help make them into a stronger, complete list of risks. Interviews and surveys differ from brainstorming because they are used to capture transportation risk information from individuals while brainstorming is used upon a group of individuals. Historical data and documented knowledge provide a collection of information about specific transportation activities, service providers and trade lanes. (Coyle, P. 295) Some of the common transportation disruption risks include product loss, product damage, product contamination, delivery delay, supply chain interruption and security breach. Product loss consists of product pilferage, shipment jettison, piracy and hijacking. Product damage contains equipment accidents, poor freight handling and improper equipment loading. Product contamination includes climate control failure, product tampering and exposure to contaminants. Delivery delay can be caused by congestion, poor weather and equipment malfunction. Supply chain interruption comprises of carrier bankruptcy, labor disruptions and capacity shortages. Last but not least,

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