Analyst Insight: The headlines tell the story: Large judgments against supply chain companies have grown exponentially. Technology can significantly reduce safety risks, but in an increasing number of court cases, that is not the issue. Instead, it comes down to whether the company is cutting corners when it comes to best practices for their technology maintenance needs.

Without advanced systems and solutions, it’s not possible to operate today’s supply chains efficiently and productively, or stay connected to customers and other stakeholders. But when those technologies are not monitored and maintained effectively, customer satisfaction isn’t the biggest risk.

In today’s litigious environment, if your supply chain technology isn’t working properly, your exposure to lawsuits is exponentially greater.  Here’s an example:

You invested in the latest safety technologies for your trucks and forklifts. Those collision warning systems and solutions such as backup cameras to help prevent accidents at pick-up and delivery locations are highly effective. But did you know that, on average across the industry, 20% of them are not working at any given time?

It would take just one incident on the road, at a loading dock, or in a warehouse for a plaintiff’s attorney to seize the opportunity to hold your company liable because it did not have a program in place to maintain the technology. In some cases, highly punitive verdicts result when a jury is convinced that your company doesn’t care about safety and should be punished financially. The more punitive the monetary award, the louder the message.

A key takeaway is that, regardless of whether an overt action occurred, a lack of action becomes a primary factor in assessing responsibility. 

There are steps you can take to mitigate risk. Implementing a robust technology maintenance program that follows policies and procedures, and documents adherence, can help counter any argument that a company is unconcerned about safety. These programs combine technology health monitoring, field repair services, a tech support call center and inventory management services. 

Preventive maintenance is highly valuable because it can be both proactive and predictive. However, when it comes to many advanced technologies, the approach we most often see is reactive, which can be a risk factor.

Technology providers have already brought a range of valuable solutions to supply chain companies and stakeholders, and that range of options is continually evolving. In the future, it will take an even bigger leap, towards a strategy of using a host of advanced technologies and interconnected solutions.

The best approach is one that mitigates risk by focusing on keeping technologies maintained, functioning properly and repaired when necessary. That’s just as important as having those solutions in the first place.

Resource Link: https://www.velociti.com/

Outlook: Litigation against trucking companies, in particular, is on the rise. According to the American Transportation Research Institute in An Analysis of the Operational Costs of Trucking: 2024 Update, those judgments have skyrocketed 967% in the last 15 years, often in amounts large enough to expose a company to financial ruin. Without an effective approach to addressing technology maintenance, repair and support needs, the risk increases, including the potential for business-threatening verdicts.