Product transportation is a necessary and essential part of the business process for most organizations. Since product damage and contamination during transit may occur, it is crucial that a proper analysis that involves risk identification, risk assessment and risk mitigation be carried out for the overall safety of the process and products. Risks arising from the said disruptions are dependent on the nature of product and method of transportation. Leading causes of product damage include employee mishandling and accidents. Contamination mostly occurs to food products, cosmetics, and other consumable commodities. This essay analyzes the risks resulting from the disruptions and their possible mitigation.
The first threat arising from damage and contamination is revenue reduction. Since it ‘s hard to sell products that are damaged, repaired or contaminated, most businesses affected by the situation are likely to make losses or experience a reduction in revenue. Another risk is that of disposal. Customers tend towards rejecting damaged or contaminated products and so do the suppliers (Coyle, Novack, Gibson, & Bardi, 2011). Delivery of contaminated food commodities to consumers may also result in possible legal actions that may end up ruining the brand reputation, loss revenue and in severe cases closure of the business.
Possible mitigations to the risks arising from damage and contamination are proper training of employees to reduce cases of product mishandling and appropriate packaging and hygiene of contamination-prone products. The risk posed by damage and contamination of goods is at times catastrophic as experienced by Peanut Corporation of America (PCA) in 2009. The company was forced to recall its peanut butter and peanut paste products after cases of salmonella contamination were reported to cause the death of seven people and illness of over seven hundred individuals (Basu, 2015). PCA, thus, stopped its manufacturing activity and later filed for bankruptcy liquidation after a flurry of lawsuits threatened its existence. The events resulted in the jailing of the company owner.