DOA (Defect-on-arrival) is often not seen as a big problem by logistics service providers because it only accounts for a small percentage of the number of orders. However, earlier research by the University of Groningen showed that tackling DOAs can increase net profits by around 20 per cent. This is not only due to a reduction in costs, but also to an increase in service levels and customer satisfaction.
Calculation tool
Based on that research, packaging consultancy FPC has developed a calculation tool that enables companies to work out how much they are losing due to DOAs and how much they could save as a result. Using six key figures, an indication of the total financial loss can be provided.
Research findings
The University of Groningen is currently conducting a follow-up study into the DOA costs associated with all internal activities relating to DOAs and the impact these have on a company’s reputation. The results of this study will be available in early 2015.
Read also: Dead-on-arrival reduced by packaging policy
Editorial LogistiekProfs
