One is that goods are improperly packaged and stored. Loss by damage occurs for two main reasons. Almost all damage to valuable stock happens during movement in the supply chain. It starts with identifying the causes of warehouse inventory damage and making a concentrated plan for eliminating the hazards that created your loss. Taking small steps toward reducing product damage in your warehouse is easily achievable.
Small Improvements to Reduce Product Damage Keep your employees safe and your warehouse running smoothly by making the necessary improvements to reduce product damage in the warehouse. As a business owner or warehouse operator, you owe it to your employees to promote a safe workplace. In addition to the obvious downside of an unsafe workplace for your employees, workplace injuries can lead to lost labor and valuable work time. Safer warehouse operations are not just important - they are critical for the wellbeing of your employees. Bureau of Labor Statistics, for every 100 full-time warehouse workers, there are approximately five reported injuries and 26 fatalities. Of that 58%, 20% would go so far as to never do business with that company again, even after a first-time occurrence. According to one study, 58% of Americans say their relationship with a business or supplier would be negatively impacted if they received a damaged product. Studies have found that the cost of replacing a damaged product can be as much as 17% higher than the original shipping cost.Īnother reason you should care about limiting damage in the warehouse is that your business’s reputation is at stake. Damage prevention is especially important for ecommerce companies. Reducing your loss to 0.5 percent would return $50,000 annually, and nevermind what achieving a 0.01 percent loss would save.ĭamaged products also lead to costly product returns. Think of the savings you would see if you invested in a concentrated effort to reduce inventory damage. If your business conducts $10,000,00 in annual product handling and one percent of that profit is lost to damage, that would mean a $100,000 loss every year - and that’s just damage-related losses. That’s a lot of money. Many businesses operate at a one percent gross volume loss from goods being damaged while in their care and control. Why does loss prevention matter? Because lost goods are tied directly to lost profit. For businesses, damage in the warehouse can hurt you in three major ways: lost profits, damage to your business’s reputation and employee injuries.
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Why Damage Prevention Should Matter to Businessesīefore we take a closer look at how to prevent damaged stock, let’s talk about why it matters. Even small steps can pay off significantly.
A functional freight damage prevention program can make an enormous impact on your company’s financial statement. Identifying these factors and taking positive action plays a large role in reducing product loss and raising business profits. Maintain a Safe Warehouse Using Signage and Visual AidsĪlthough product damage feels inevitable, there are several controllable factors that contribute to inventory damage reduction.Move Products Safely With the Help of Pallet Trucks and Stackers.Organize and Store Loaded Pallets With Effective Racking Solutions.Contain and Protect Bulk Items With the Help of Different Containers.Secure Loaded Pallets by Using Stretch Wrappers and Loading Correctly.Small Improvements to Reduce Product Damage.Why Damage Prevention Should Matter to Businesses.You also know that to reduce product damage, you’ll have to make improvements in your business model. As part of the industry, you look for best practices on how to prevent shipping damage. They strive to reduce their cost of doing business by looking at the root cause of incidents where products are devalued or destroyed.
Accidents happen, but you can greatly reduce the rate and severity of workplace mishaps that damage inventory and sometimes injure workers.ĭamage prevention in the supply chain is a high priority for warehouse managers and transportation operators. Unfortunately, no matter how well-managed a company is, that statement is somewhat true. You might think damaged products are inevitable and part of the cost of doing business. They’re responsible for bottom lines and the financial health of their companies. Unnecessary loss is frustrating for owners and managers who compete in tight markets. Each year, American businesses all across the supply chain suffer untold losses resulting from crushed, broken, bent and defective goods. Product damage accounts for significant revenue loss for everyone involved in the storage and transportation industry. Inventory damage is a huge issue in the warehouse business.
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