Cost of packaging damage

What's the real cost of packaging damage?

How many boxes are damaged during shipping? I'll give you a quick second to think. Alright got an answer? It's 1 out of 10 boxes. Doesn't seem like a lot does it? Now you do the math of shipping over 100,000 boxes per year. I'm not going to get that answer for you, I was told there'd be no math...

It may not seem like a lot, but that's a lot of damage per boxes shipped. And where does that cost of packaging damage happen, because it's not just the cost of the product lost. Direct costs of damage may be associated logistics and packaging departments of a company, but they really affect the entire company. Let's take a look at how damage ripples throughout your business, and you may not even know it.

damaged packaging

Packaging damage spreads its ripples

Talk to a department manager and they may not understand the true cost of damage. Talk to a CFO on the other hand, and well, you may want to bring pen and notebook. You're going to want to take notes. The total cost of damaged goods extends beyond any single department and budget. Those costs ripple across the company, directly and indirectly.

The cost of packaging damage doesn't just relate to the cost of shipping to get your products somewhere. There's hidden costs you need to be aware of.

  • Visible damage
  • Concealed damage
  • Labor costs
  • Safety issues 
  • Customer satisfaction

packaging damage

When a truckload full of your product arrives at a receiving dock with crushed boxes and shifted pallets, that's not good. That's visible damage, but what about the damage you can't see? How about the products within the boxes that look safe and protected? That's concealed damage and it forces you to return the product, inspect, repackage, and reship the product. Talk about added cost of packaging damage! Now bring the labor costs into effect. Instead of your employees working on shipping out the right products, now they have to go back and fix damaged packages that shouldn't have been damaged in the first place. The safety issues come into play when the loads are shifting and moving during shipping. This poses a threat to the drivers, warehouse workers, and ultimately the end customers. 

When's the last time you received something in a package that was broken? Bet you weren't happy, right. Customer satisfaction is explanatory but there's a built in cost there that you can't add to your budget.

Reviewcorrugated boxes

The type of packaging and modes of transportation affect the amount and type of packaging damage. Appropriate packaging helps to ensure that customers receive the product without damage. Damage is one of the major factors in lost revenues. So let's change that by being informed and learning about the different packaging products out there to protect your shipments. 

 

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