TECHNOLOGY FOCUS Cutting costs
REDUCING THE RISK OF HANDLING DAMAGE
Wouter Satijn, Chief Revenue
H
andling damage within the supply chain presents a real challenge for businesses,
and customer retention. Yet the true cost frequently goes under the radar: for example, it often comes as a surprise that damage to goods incurred during handling processes is far more prominent than damage caused while in transit.
The most common areas for handling damage to occur are typically during loading and unloading operations at production sites, warehouses and distribution centres. For sectors such as FMCG, where thousands chain every day, even low rates of damage can quickly scale. A mix of heavy and fragile items compounds the risk. Once damage does start to occur, it often continues, usually because of: • Manual handling and forklift-based loading are causing impacts during pallet pickup, placement and trailer entry. • Inconsistent load formation is allowing goods to shift during transit, resulting in damage when transport conditions are stable. • Packaging and labelling issues, including instructions, are leaving goods vulnerable during repeated handling stages. Handling damage shouldn’t be ignored.
There are steps businesses can take to eliminate the risk and ultimately strengthen supply chain performance. It’s a clear example of how decisions made in one unit can have unintended consequences on another.
When goods do not arrive on time and intact, businesses face a chain reaction of reshipments, delays and missed delivery commitments that can quickly turn a single damaged load into lost revenue and future sales. In FMCG supply chains, where retailer service level agreements (SLAs) are strict
28 March 2026 | Automation
and margins are tight, it can also result in penalties or delisting risks. In addition, minimising handling damage means organisations can reduce the operational disruption that pulls teams away from revenue-generating work. Sales teams could be seeking new customers instead of managing complaints. Logistics personnel could work on core business activities, rather than wasting productivity on processing returned goods.
Maintaining consistent product quality also means preserving pricing integrity. When products reach customers in good condition, businesses are not forced to discount stock to recover value or compete with their own reduced-price goods. Handling damage can also indicate
improper handling or incorrect use of equipment. In these cases, the issue extends beyond damaged goods to potential safety and compliance risks.
KPIs of damage-free handling businesses need clear visibility of how much product reaches its destination intact and where damage is occurring. Measuring performance helps identify recurring problem areas and ensures that damage- reduction measures deliver results. One useful formula that can be used is the damage-free shipping rate: (the number of goods that reached their destination damage-free / total number of goods shipped) *100. Ideally, businesses will aim to achieve a one hundred per cent damage-free shipping rate. The more that performance falls short, the more necessary it is to introduce
measures, such as implementing load optimisation software to prepare optimal truckloads. Updating standard operating procedures (SOPs) for handling and loading is also recommended to minimise product damage, including training delicate items and heavy ones. This is in addition to harnessing loading solutions to load trailers in a straightforward, standardised manner. for businesses seeking to reduce product damage The same system can load any trailer, whether it belongs to the manufacturer, a third-party logistics provider (3PL), or the buyer, such as a supermarket sending its own trailers to collect goods. The loading process itself is smooth and consistent, suitable for loading all types of palletised products. Forklifts are needed only to place the goods on the system, which takes care of the rest. by 50 per cent. Importantly, these supply chain solutions also increase loading safety by removing manual handling from the process. Employees involved in loading can work as safely as they can quickly.
The multiple stages of the supply chain mean handling damage remains a challenge for many businesses. However, it does not have to. By reducing manual handling, standardising loading processes and tracking performance over time,
Joloda Hydraroll
www.joloda.com/en/
automationmagazine.co.uk
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