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Damage Research Savings

A small problem identified and corrected through damage research can lead to large savings. The chart below shows the savings that just 0.25% change in the damage rate can have in the profit and number of cases shipped.

Samples Savings Generated with Damage Research

A $1 billion company with the industry average damage rate of 1.25% will have $12,500,000 in unsaleables. If Damage Research can help cut the damage rate by 0.25%, the savings will total $2,500,000 per year. If the average profit per case is $9, then the company would need to ship 277,778 cases less to make the same profit.

Below is a chart that shows the savings generated by shaving just 0.25% from a company's unsaleables rate.

Company A B C
Sales $9,000,000,000 $1,000,000,000 $500,000,000
Damage Rate 1.25% 1.25% 1.25%
Value of Unsaleables $112,500,000 $12,500,000 $6,250,000
Reduction in Rate 0.25% 0.25% 0.25%
Savings $22,500,000 $2,500,000 $1,250,000
Average Profit per Case $7 $9 $8
Case Equivalent 3,214,286 277,778 156,250