Lessons from My DSP Journey

The Importance of Risk Management in
Safeguarding Your DSP Business

In 2020, I launched my Delivery Service Partner (DSP) business with the same excitement and ambition as many entrepreneurs stepping into the logistics industry. By 2024, I had exited the business—not due to poor performance, but because of high insurance costs that became unmanageable. Along the way, I learned invaluable lessons that I wish I’d known earlier, especially about risk management, and I want to share them with you.

Lesson 1: The Early Days: Mastering the Basics

Like most new DSP owners, I went through the standard training, learned the basics of operations, and dove into the daily grind. It didn’t take long to realize that success in this industry revolves around three key elements: hiring and retaining great drivers, maintaining a fleet of operational vehicles, and building a solid safety culture.

The formula seemed simple, but the execution was intense. Meeting safety and performance metrics quickly became my priority, not just for operational success but to secure the top incentives. This focus paid off—we achieved Fantastic Plus scores and consistently ranked in the top 5% of DSPs. On paper, things looked great.

Lesson 2: The Hidden Layer: Risk Management Beyond Safety

What I didn’t fully grasp at the time was that a strong safety program alone wasn’t enough. Yes, we had a solid safety culture that prevented many incidents, but what about the unexpected? Risk management, I later learned, is not just about preventing incidents but also about responding to them. It’s about having the right plans, resources, and knowledge to handle the inevitable challenges that arise in the logistics world.

Looking back, I realized that I was underprepared for the deeper layer of risk management—especially how to handle incidents when they occurred. It wasn’t enough to simply avoid accidents; you need a plan for how to respond, mitigate the damage, and protect your business from the long-term financial consequences — especially as losses experience in year 1, for example, continue to affect your loss ratings for 3 years. Therefore, every claim compounds itself over 3-years! Something to know and avoid. Now I know that ignoring this side of risk management can worsen your loss history and leave you vulnerable to rising insurance premiums.

Lesson 3: The Insurance Trap: A Challenge Many DSPs Face

As my insurance costs started to climb, I began to feel the weight of this oversight. I wasn’t alone. Many DSPs face the same challenge: despite doing everything “right” on the surface, we didn’t have the deep understanding or resources to manage risks effectively. And in an industry where insurance is a major expense, this can be the difference between staying in business and shutting down.

By 2024, the high insurance costs had become too much to bear, and I made the tough decision to exit the business. It was a hard lesson, but it sparked a realization: DSPs need more than just good safety programs—they need comprehensive risk management solutions.

Lesson 4: Risk Management is a DSP Requirement

With this experience in mind, I co-founded "GRYPHON:, a safety and risk management group dedicated to helping DSPs avoid the same pitfalls I faced. Our mission is simple: to protect your business from the rising insurance costs that can threaten your livelihood. At GRYPHON, we focus on both sides of risk management—preventing incidents through solid safety practices and providing the tools and support needed to respond effectively when things go wrong. By addressing both aspects, we help DSPs safeguard their operations, improve their loss history, and ultimately reduce insurance costs.

In Summary:

Being safe is a requirement for the wellbeing of your workforce, your vehicles and for your performance (scorecards), but managing your RISK should be a top priority for your DSP profitability and business longevity.

Your business depends on controlling your losses, because regardless of how safe you and your team are, incidents will happen in our industry. How we manage them can be the difference between keeping your DSP open or having to close.

Choose to remain OPEN! People depend on you and you depend on them to thrive!

Remember, take control of your risk and be the guardian of your business longevity!