A 3PL in need
Intro
ABC-3PL is a global omni fulfillment solution trusted thousands of brands toship orders from everywhere their customers shop.
From memorable unboxing experiences to faster shipping, ABC-3PLprovides best-in-class supply chain solutions and fulfills global orders withover 50 carriers and over 30 warehouses including locations in the US, UK,EU, Canada, and Australias.
The Problem
With so many locations and partner carriers, ABC-3PL has a messy and timeconsuming process when filing claims with the carrier both for the carrierincluded liability and any additional coverage purchased, if any. As the account owner and as a value-add offering to their brands, ABC-3PL will file claims with carriers on behalf of their merchants.
This process involves collecting claim information, photos, invoices and any other required documentation from thousands of customers and then filing those claims with the carriers. With so many carriers, each with their own requirements and processes, ABC-3PL has a major bottleneck.
As they are purchasing carrier liability (as opposed to insurance), there strictive terms create pain points for their brands, leading to difficult conversations, friction and unhappy customers. Some examples include:
Limited Coverage restricted to carrier negligence leading to a higher percentage of claim denials (i.e. porch piracy).
Lengthy claims processes which vary by carrier
Documentation requirements which vary by carrier
Coverage for cost of goods sold as opposed to sales price
Special limitations on coverage per commodity and in some cases,geographic limitations
The Solution
Cabrella provided ABC-3PL a customized end to end solution addressingall of ABC-3PLs needs on both subrogation and insurance – all managedthrough the Cabrella native software.
Cabrella provided a standardized insurance program for practically anycommodity, any conveyance with major global transit routes, allowingthe offering to be applicable to all ABC-3PL’s merchants. Cabrella provided API parameters in order for ABC-3PL to embed keyfunctionality within their native brand-facing systems – including abilitiesto obtain rates, binding & voiding transactions.
For Claim filing, Cabrella introduced a two tiered claim filing solution:
Claim filing by ABC-3PL Staff: Merchants call into ABC Call center and provide information to file claims – culminating with a claim number that the merchant can use toobtain claim statusupdates online.
Claim filing by the merchant on a custom designed, white labeled claims page allowing for advanced claim service functionality.
This created value for both ABC-3PL & its merchants
To leverage any automatically included carrier liability, Cabrella designed a two tiered Solution defined by shipments under $100 in value vs those that were over $100 in value
Under $100
(Insurance Solution)
All transactions transmitted stored andprocessed by Cabrella
No premium charges for shipments
Claims filing process is standardized across allcarriers – allowing ABC-3PL to file all claimsand upload all document in one system.
Claims reorganized into structured reports andmade available to subrogation partners to fileclaims with each carrier directly, subrogatingfunds for ABC-3PL and their brands.
Over $100
(Insurance Solution)
Any shipment with requested insurance transmitted, stored and processed by Cabrella
Premium charged for shipments
Acces Claims filing process is standardized across allcarriers – allowing ABC-3PL to file all claimsand upload all document in one system. s to a comprehensive insurance plan tofill in the gaps such as
Claims reorganized into structured reports andmade available to subrogation partners to fileclaims with each carrier directly, subrogatingfunds for ABC-3PL and their brands.
The Results & Benefits
Cabrella provided an end to end transparent custom solution to complement the needs of ABC and its merchants. Most importantly, the introduction of thewhite labeled self service claim page shifted the burden of claim filing activity by about 70% from ABC-3PL to the merchants themselves – resulting in majorcost savings and efficiency for ABC-3PL as well as visibility and transparency for merchants - a WIN WIN Solution.
ABC-3PL
One backend solution to consolidate all declared value andinsurance activity across over 30 warehouses and 100’s ofcarriers
Clear visibility and reporting including loss metrics andstatistics by carrier, by warehouse, by brand and more
Shift of claim filing and subrogation activities to merchants and 3rd party – saving costs
ABC-3PL would work with Cabrella on a quarterlybasis to address needs of clients, decrease risk viapackaging and other risk reducing strategies - makeadjustments to the program to keep it competitive.
ABC-3PL is able to get a competitive edge againstothers in the space by providing a user friendly tooland comprehensive coverage at an affordable price.
More positive customer feedback and conversations, adding value for all merchants big and small
Merchants
Access to comprehensive insurance through thesoftware provided by ABC-3PL
Access to a streamlined and standardized claimprocess with ability to check status updates, uploaddocuments, review/complete checklists and more
Access to a comprehensive insurance plan tofill in the gaps such as
Coverage for Sales price including shipping and taxfor practically any commodity, any conveyance,anywhere in the world
Higher claim approval percentage including coverage for porch piracy and other commonly excluded perils.
Faster Claims Turn around time with adjustment within 5-7days of document and claim compliance.
