How to assess damage to packaging and products in transit

Packaging theft is technically not a form of damage, but it can still take a toll on your business and your customers. Depending on your situation, your company may be responsible for lost packages.
To reduce instances of package theft, you need to refer customers to services offered by organizations like UPS that can give you customized pickup times and delivery options.
pest
Insect infestation can be a serious problem when you're shipping product packaging. When too many rodents or insects invade the area where you place your wrap, damage is likely to occur. Problems related to infestation by pests such as rats or bugs are most common during overseas shipments.
Rugged packaging supplies help keep harmful critters and bugs from entering containers and damaging or destroying the products inside. Consider using a thicker cardboard box with an interior compartment that features excess cardboard and wraps around the product.
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An important metric when trying to minimize damage to your packaging (and more importantly your product) is the amount of damage you experience each week. That is, the total number of damaged packages you produce each week.
Tracking this information and analyzing the data will help you determine what you can do to prevent unnecessary damage to your package.
Focus on reducing weekly losses and consider making it permanent as part of your key performance indicators. By focusing on your losses on a weekly basis, you will be able to reduce them over time.
Where did these damages occur?
Next, you'll want to find out where the damage happened. Is it in your own supply chain? in your warehouse? During shipping? In the carrier's warehouse? In a delivery van?
Finding where packages are most likely to break allows you to monitor and correct these issues before they occur. When the damage is primarily at a third party's location, you will want to work with them to resolve the situation as quickly as possible.
If the majority of damage occurs on packaging lines, supply chains, warehouses or locations, then you will need to implement KPIs. These KPIs should focus on reducing damage in each segment until little or no damage occurs.
What is Raw Sell?
Original sales are how much money you would make on the product if it were delivered directly to the customer and undamaged.
Calculating this metric is important because it gives you the opportunity to see how much money is lost per damaged package on a weekly, monthly and yearly basis.
Taking responsibility for this data will help you and your team implement proper protocols to reduce instances of damage to your product. It is important to know this in order to hold your organization and suppliers accountable for the damage caused.
Seeing difficult numbers will motivate your management team and all employees in your company's transportation department to focus on reducing losses. Keeping track of this stat will ensure your damage numbers stay below target.
What was the original cost of production?
You will want to look at the production cost of your product to help you understand the value of keeping it safe. If you're not yet sure exactly how much you're spending on each packaged product, it's wise to look at this easily overlooked figure.
Although it may seem like a small number on paper, each of these damaged items can add up quickly. By keeping your production costs in mind, it will be easier for you to better protect your product since you have a real idea of the value of each item you pack.
How much did it cost you to dispose or rework the loss? How to Assess Damage to Packaging and Products in Shipping
Every damaged package is one that had to be discarded or completely reworked in the first place to ensure it was packaged correctly and ready to try again into the arms of consumers.
Do you know how much you lose business with every rework or disposal? Do you consider these items as "soft costs"? If so, you may want to look at these projects from another angle so you can see how costly the damage is to your business.
If you would like assistance in setting up the proper procedures, equipment and materials to help you minimize damage, please consider contacting our packaging experts. They will help you analyze your packaging line and find areas for improvement.
Keeping an eye on these metrics will help you reduce losses and notice the real impact damaged packaging is having on your bottom line.
How to reduce or offset losses
If you would like assistance in setting up the proper procedures, equipment and materials to help you minimize damage, please consider contacting our packaging experts. They will be able to help you analyze your packaging line and find areas for improvement.
They will also help you reduce losses by putting important actions into practice. Industrial Packaging has been working to reduce damage throughout the supply chain. We'll help you save money while keeping your products safe.