Incentive for Transportation Services

Sample / Template / Example of Incentive Policies / Schemes Letter for Transporters for saving on account of Materials Transit Damage in word /.doc Format

Transport Corporation of India

45/1 Malik Bajar

Mumbai – 425 455

Dear Sir

We are despatching about 20000 Trucks in a year from our factory at Khapoli to various destinations all over India through your transport companies. Materials got damaged in transit due to mishandling at transshipment points and we have to lodge substantial claims with insurance company .We are giving below claims lodged by us and received during last two years :

                   Rs. in lacs

	2011-12	2012-13
Value of materials damaged	100.00	200.00
Amount received/receivable	50.00	80.00
% received over claim lodged	50.00	40.00

From the above statement you shall observe that we have incurred a substantial loss amounting to Rs.50.00 lacs in the year 2011-12 and Rs.120.00 lacs in the year 2012-13 towards the non-receipt of insurance claim. These claims are apart from claims we are not lodging with insurance company as value of loss incurred in a single consignment is Rs.10000/- and below.

In today's competitive world it is very difficult to survive, if we incur such type of indirect cost which we can avoid with awareness and alertness at the time of unloading and loading. With our past experience, we feel that at the time of unloading at transshipment point, proper care is not taken by you representative. Following points are to be kept in mind at the time of unloading and loading at transhipment point :

1. Packing materials coming from factory along with finished goods should be kept properly in your godown and at the time of loading should be used properly to avaoid damaged in transit.
2. Materials must be covered with two tarpaulins.
3. Handling of lamination boards should be done carefully to avoid scratches (paper packing should be intact at the time of unloading and loading).

To get motivation and awareness in your representatives, we are introducing a scheme to benefit your representatives at Nagpur and Kolkata as follows :

Particulars	Incentive awarded
If claims lodges are reduced by 50% in financial year  2013-14 than 2012-13	5% of the reduced value of insurance claim lodged
If claim lodges are reduced by 75% in financial year 2013-14 than 2012-13	7%
If claim lodges are reduced by 90%	8%
If claims lodges are reduced by 100%	10%

It does not include water damage, accident in transit. This shall be transporter wise and delivery wise materials free of damage.

For, Rocket Sale Ltd

Anil Goyel

GM - Logistics