Reduction of excessive claim costs associated with damaged cardboard cartons in distribution

Abstract

Courier services suffer a severe problem of experiencing parcel damages that lead to customer complaints and carton claims. Cardboard cartons are easily prone to being damaged during transition and courier companies are not always accountable for parcel damages but still endure consequences as claim costs continue to rise every financial year. The Plan-Do-Check-Action system was used to collect and analyze data intending to prioritize problems, and a parcel inspection was conducted for 22 suppliers to measure variables. Correlation analysis was conducted, and results showed a strong correlation between weight, size, internal carton utilization, and flute corrugated size used on a cardboard. A fish-bone diagram was used to represent the potential root-causes, as a result the relationship between these variables has proven to have the most impact on parcels being damaged. The correlation between the flute corrugated size and internal carton utilization along with mishandling of stock impacted damages the most. During the movement, the durability of the carton is highly depended on these variables. An implementation of training and awareness on how to handle stock with care was conducted to reduce damages during distribution while optimising operations.