We were approached by a customer manufacturing bedroom furniture who was having a number of issues with product damage on a small pedestal unit, attributed to bad handling by haulier and distribution network. They were seeing a monthly rejection rate of 9% which equated to a cost of over £6,000 in returns for approx. 160 units. In addition to this the cost of admin, return cost, replacement costs amounted to a further £8000 making a total of £14,000 or 18% of sales value.

We conducted on site assessment and monitored transport methods and spent time with the distribution site to identify where and why the damage was occurring. This highlighted a number of issues. In fact 20% of damage actually occurred in the customers factory, warehouse and despatch. Transport accounted for 18% and the distribution a further 62%.

We trialled a 35 x 35 x 3mm edge protector (Angleboard) which resolved all of the customer and transport issues resulting in 60 units saved from damage. As distribution could be handled several times this proved more difficult but with the edge protection applied reduced damage by 44% saving a further 70 units.

Initially returns averaged 30 units but has since reduced to 20 units by better working practices. Overall savings of 140 units at a total return / replacement cost of £12,250 per month were saved.

The extra cost of edgeprotection was approx. £700 per month.

Over a 12 month period the saving to this customer was £147,000 for an outlay of less than £10,000

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