Savings Generated through Damage Research
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 |
Calculate Your Potential Savings
Use the form below to calculate the potential savings available through damage research.
Unsaleable Management Expertise
Unsaleables Invoice Processing
Listen to Don Rombach featured in the
Green Initiatives in the Reverse Supply Chain
podcast from Oracle's
Eco-Enterprise Podcast series.
Listen to Herb Shear's CSCMP podcast:
