For motor carriers, having an organized policy for recording information and retaining documents can be the key in running a smooth operation.
Carriers should ensure they have such a policy in place to promote safe operations, ensure regulatory compliance, maximize efficiency and manage their legal exposure. Doing so can prevent serious headaches down the road.
Here are the Top 5 reasons to have an organized document retention policy:
Ensuring safety and compliance
We know that safety is a primary consideration in the motor carrier industry. An organized system for retaining documents can ensure that the important steps you take to comply with safety standards are properly recorded, giving carriers peace of mind. A review of such records can help ensure you remain in compliance and even help identify any safety concerns that may have otherwise been overlooked.
Preparing for audits
When the time comes for your operation to face an audit, having organized records is essential. Documents including vehicle inspection reports, driver Hours of Service logs or duty status reports, maintenance records and more are often required to be available for review.
Having a clear system in place for retaining and managing these records can save you time and stress when audits occur, avoiding delays and potential fines.
Managing legal risk
Maintaining a comprehensive document retention policy can also help manage your legal exposure. If a claim or dispute arises, having appropriate documentation readily available can help carriers respond to legal matters quickly.
A party can be placed at a serious disadvantage in litigation when they are unable to produce necessary records. By holding on to key documents like accident reports, maintenance records, records of shipments, imports/exports and driver logs, you give yourself the best chance to support your defense and avoid costly legal battles.
It is best practice to retain documents for several years after an event to avoid being caught off guard by claims that may arise down the road.
Maximizing operational efficiency
A thoughtfully organized document retention policy can offer benefits beyond simply mitigating risk. As competition in the industry continues to increase, it can serve as the competitive edge that carriers are looking for by helping to streamline operations.
Maintaining important records in an organized and easily accessible fashion can improve operational efficiency, allowing you to instead focus on growing your business and servicing your clients.
Reviewing past records can also provide insight into costly areas of business operations, such as driver performance and maintenance issues. Historical data can inform future operational decisions and help identify inefficiencies, thereby assisting carriers in reducing costs and optimizing their operations.
Enhancing your reputation
Maintaining a reliable document retention policy can also aid in enhancing your reputation in the industry. Clients want the peace of mind of working with carriers that are efficient and well run. When you’re able to service your clients in an organized and thorough manner, you can demonstrate that your business takes its obligations seriously, thus attracting new business and developing stronger client relationships.
Get expert help
A proper document retention policy is an essential tool for running a successful trucking operation.
Whether you’re just starting out or looking to improve your current practices, it’s clear that investing in document retention will pay off in the long run. Organizations will benefit from seeking the advice of professionals in developing a policy tailored to their needs.
Law firms with specialized transportation groups, such as Gardiner Roberts LLP, can offer a full spectrum of such services.
Credit: Source link
