Cabrella can help third party logistics companies insure packages, manage claims and provide important loss control data using that leads to improved efficiency all in one handy application. Companies may register their packages to be insured via integrated API technology, file and organize claims across multiple carriers with one streamlined process, upload documents and improve customer satisfaction when using Cabrella.
Cabrella provides customized insurance coverage for high-value parcels and cargo containing delicate materials and/or general merchandise through their proprietary integrated technology application. Although most of Cabrella’s membership is comprised of small to mid-sized businesses, they have recently expanded to service larger 3PL (3rd Party Logistics) companies in an interesting and innovative way.
The Traditional 3PL Logistic Problem
When a vendor requests for insurance to be included on a particular shipment handled by their 3PL, the 3PL will generally insure the shipment with the carrier that is being selected on that specific shipment. If under a certain threshold (usually $100), the coverage can be automatically included, depending on the carrier and service selected. If over the threshold, this practice could prove problematic as the carrier declared value rates are exorbitant, often starting at a price of close to 1% of the value of the item. In an era where the recipient expects free shipping, these additional costs could lead customers to choose a different 3PL.
Even so, the bigger issue at hands is how to handle the claims themselves. For a business that has thousands if not millions of shipments annually going through a variety of carriers, how can they handle the claims volume efficiently when each carrier has different processes, requirements and time frames? Further, with customers often seeking status of claim reimbursements, how can the 3PL keep them happy when the carrier often takes months to settle small claims?
Through its technology and service offerings, Cabrella has helped solve this problem for one of the nation's largest 3PL companies.
How Cabrella Helps
Through API integration, Cabrella automatically gathered data on all outbound shipments leaving multiple warehouses throughout the country – creating a true automated process. For any package valued at less than the threshold chosen by its client, Cabrella processed the transaction at $0 premium; for those above the threshold, Cabrella charged a heavily discounted premium rate.
With all transactions in the system, Cabrella’s 3PL was able to use the software to manage claims (both with Cabrella and the Carrier). For any claims with the carrier, Carbella provided custom reporting and streamlined the claim process. For packages over the threshold, Cabrella adjusted claims quickly and smoothly to the delight of its members. For these packages, Cabrella provided coverage on a 1st dollar basis and then continued to try to subrogate any amounts from the carrier, if available; if successful, Cabrella updated the claim file (fully visible to the 3PL) to list any subrogated amounts and how that affected the overall loss ratio and profitability of the account.
Beyond that, the 3PL is able to now have an organized system for filing and keeping track of timelines and payments for all claims – whether insured with Cabrella or not.
Further, by being able to download and analyze critical claim data, the member is able to pinpoint certain carriers, services and warehouses that led to claims and make logistics changes to improve their entire operation.
Through Cabrella, the 3PL is able to:
- Add value for their vendors by insuring all packages at a heavily discounted rate
- Have a unified paperless system for tracking all claims, storing documents, viewing information and keeping track of claim adjustment time frames to ensure customer satisfaction
- Streamline the carrier claim process across multiple carriers for direct subrogation.
- Close and pay claims quickly, improving customer satisfaction
- Access critical Business Intelligence & Loss control data and use that to
- Improve their operation, efficiency and client experience
- Pinpoint issues such as poor packaging on certain products, carrier negligence and issues at point of pickup at certain locations and any other trends leading to above average losses.
- Increase membership and growth
At one time, 3PL’s could only rely on carriers to cover their shipping insurance needs. That always led to three significant problems.
- Purchasing insurance through a carrier was always more expensive. That could be especially difficult during the age where more people expect free shipping on major purchases.
- It could be difficult at times to get the claim paid out to the recipient when you had to work with carriers who had hundreds of other claim requests to work out.
- The entire resolution process was long and tedious, which made it difficult for 3PL’s to deal with carriers. And at the same time, it caused recipients to become dissatisfied with the outcome.
The 3PL Partnership
Now that more 3PLs are partnering with Cabrella, they have eliminated these and other issues, which has improved the speed of their claims resolution process while improving their customer service and support ratings at the same time.
Thanks to Cabrella, 3PLs are no longer limited to only working with carriers to fulfill their shipping insurance needs. Because there are more options available to them, these third-party logistics companies can choose who they want to partner with for their insurance needs. Their decision could be based on their budget or based on what additional services are offered by the provider.
3PLs who partner with Cabrella now have the advantage of getting paid directly from Cabrella for any insurance claims filed. That drastically cuts the wait time for payment in half. Not having to wait for an extended period to receive the money from an insurance claim is perhaps one of the best benefits third party logistics companies have received from this partnership.
Another plus that’s occurred after more 3PLs have partnered with Cabrella is that these companies can now save more money on their insurance costs. With less expensive insurance costs and faster claims services, the process of filing insurance claims has overall improved for many 3PLs.
3PLs now have access to Cabrella’s Business Intelligence Software. That provides them with valuable information on where most of their insurance claims are coming from. They can also find out which carriers are the most reliable based on these details. This data allows 3PL’s to make better decisions for their company that are both time-saving and cost-saving.
Cabrella has partnered with all major carriers, including the United States Postal Service, UPS, FedEx, and DHL. That ensures that more companies can use their shipping insurance services with more versatility and freedom to choose which company they would like to ship with. Importing and exporting businesses around the world can offer more benefits to their customers by using Cabrella’s services. These companies enjoy the peace of mind in knowing that all the products they choose to ship out are fully insured with a more comprehensive form of coverage. With an abundance of customized options for their shipping insurance, it is easy to see why more businesses are choosing to turn to Cabrella for assistance with all their importing and exporting needs.
Phone Number: (844) 422-2735