According to a Supply Chain Digest study, transportation-related damage costs businesses about $0.60 for every $1,000 of goods transported [1]. Frequent shipments, pickups and transhipments between branches contribute to this. What steps can both traders and freight companies take to reduce the risk of damage to products?

Damage during transit is a normal, if not common, occurrence. Goods travel many kilometers on trucks, trains, or ships, arrive at sorting facilities, and pass through many hands, along with millions of other shipments. According to the Civil Code, the seller is responsible for damage to parcels until they are handed over to the consumer. It is he who is obliged to repair the goods, replace them with new ones, reduce the price or even refund the funds, if that is the buyer's wish.

The seller is obliged to accept the buyer's complaint even if the damage was not his fault. If he suspects that they are due to the negligence of the shipping company, once the complaint is realized, he can contact it to explain the reasons for the damage to the shipment. It is the carrier who must ensure that the goods are properly transported, and is liable for loss, loss or damage to the shipment occurring from acceptance of the shipment until delivery, as well as for delay in transportation.

Keep in mind that although it is the shipping company's responsibility to take care of the goods being transferred, the seller also has certain obligations related to transportation. The original manufacturer's packaging is often not suitable or sufficient for general cargo transport with numerous transshipments. We educate customers, analyze the causes of damage and point out opportunities to change the packaging so that the transport is safe for both their goods and the goods of other customers. Finally, it is worth noting that if the seller packed the goods properly and the carrier is to blame for the damage, they can of course claim compensation,” says Katarzyna Stasiak, Regional Sales Manager of Geis PL.

Damaged products generate unnecessary costs, which include customer service related to the complaint, purchase and shipment of a new product, sometimes payment of compensation, as well as transportation and administration costs. If a company requires customers to send back damaged goods, it may encounter problems with their storage or disposal after acceptance. Vendors who choose to repair slightly damaged products face additional labor and parts costs, and profit from them will nonetheless be lower than from new sales.

Damage to goods accounts for more than 90 percent of complaints. Thanks to an effective strategy to prevent this type of situation, we record a reduction in the number of damaged shipments each year, along with a corresponding increase in the number of damages. The rate of reported damage is getting lower and lower: in 2023 it is 0.22 percent, and in 2022 - 0.33 percent. In turn, the rate of damage caused by our carriers alone - is 0.15 percent in 2022 and 0.09 percent in 2023, respectively. - Bartłomiej Lenart, Claims Manager of Geis PL.

It is important to regularly monitor the number of defects. If necessary, it is worth setting up a special team to detect errors or propose improvements. It is also important to constantly train staff and work on the safety of customer shipments, as well as to act in accordance with ISO procedures and quality standards - updating procedures, checking their effectiveness, for example, through internal audits.

[1] https://www.shipscience.com/blog/controlling-damaged-goods-in-the-supply-chain