Damaged Product – A 6-Step Process to Resolution

Damaged product is simply not acceptable. Whether our products are OEM or retail, customer interaction with product packaging and the product is critical. Retail customers, like you and me, do not buy products that have dents, broken shrink-wrap, or torn labels. Likewise, OEM customers do not want to deal with fallen over pallets, banged-up outer cartons or ripped open bags. This kind of damage greatly reduces an OEM’s ability to be efficient and creates questions about the quality of the goods received.

Damaged product packaging and products has negative consequences, both from a brand loyalty perspective and from an internal costing perspective. The cost associated with brand loyalty is decreased revenue opportunity. Often customers do not tell us their problems; they simply quit buying our products. The internal product costs are bit easier to determine through cost modeling. With consequences such as these, it leads us to wonder how product packaging and product damage occurs and how can these issues get resolved?

The following is a comprehensive process to resolve damaged product.

1.  Document the actual damage that is occurring through samples and photos.

2.  Evaluate the frequency, assign costs and create cost model to understand the financial impact and establish a budget for improvements.

3.  Map distribution channel, noting the various conditions the product experiences as it travels to the end-user.

4.  Examine manufacturing systems to insure products are safely transitioned from operation to operation.

5.  Examine the packaging system including:

• Primary packaging practices
• Secondary packaging practices
• Tertiary packaging practices
• Pallet patterns
• Pallet protection materials

6.  Document findings and create an action plan incorporating root cause and budgetary factors.

Naturally, executing and earning the ROI on this 6-step process takes deep commitment from corporate leadership and cross-functional staff members alike. However, embracing a curious approach to problem solving and establishing budgets can make all the difference in resolving issues surrounding damaged product.