Friday, June 26, 2009

Reducing the Cost of Damage Within the Warehouse Industry

Every year billions of dollars of warehouse materials is damaged somewhere in between the packing, delivery, or and the retail shelving process. Any number of reasons can cause damage to goods and the only way to determine the cause for the damage is to conduct a thorough warehouse audit to examine every time a product is touched, by whom, and at what location. It is necessary to observe how the product is handled from case to palletizing and ultimately retailer stocking.

Areas of concern:
Packing material should be strong and durable enough that it will not break as you palletize the materials. You may need to change paper to corrugated cardboard in order to maintain the integrity of the packaging during shipping.

The handling of the product should be done with the proper equipment. Improper use or equipment that is used for the wrong application can damage goods. An improperly used forklift will cause damage by crushing or dropping the product.

Proper palletizing should consist of placing product to build strength using proper load configuration and distribution of the weight to reduce voids between boxes. If need be, use stabilizing material to fill in the voids.

The method of handling by the customer is just as important as the process within your own warehouse. Is the pallet being placed in an area with adequate space to accommodate the material without damaging the packaging? Is the customer using correct moving and storage equipment appropriately, or are they misusing equipment?

Observation, communication between customer, vendor, and manufactures, using metrics, and constant analyises is important in reducing damage to products either in the warehouse or in transit. The above is a sampling of the areas of concern. Consider using an unbiased third party in order to assist you to mitigate product damage and ultimately reduce cost of damage.

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