What to do about Concealed Damages
As logistics consultants we at PNG have had several clients come to us for guidance on the issue of concealed damages. We understand that our clients have invested a lot in their packaging and often times it is through no fault of the shipper that the product was damaged, however if the delivery receipt is signed no damages it becomes and uphill battle.
First off when dealing with damages time is off the essence, our policy is to please inform us right away but at the latest 15 days after delivery, AGAIN as soon as you find out that a product is damaged contact our office right away. Often times when you are dealing with the carrier directly or with other 3PLS be prepared to fill out the claims form and have the commercial invoice handy (AT PNG we handle the claims process)
We at PNG believe prevention is key and we have come up with some great ways to reduce claims and damages.
Case in point, a client of ours was shipping their product on one skid and one piece would often get damaged we took the time to inspect how the product was packaged and instructed the client to ship the piece that was normally damaged as a lose item this prevented the carrier from being able to stack on top of this item and damage it. We were able to virtually eliminate their damages and their low pricing remained the same.
SO HOW CAN YOU REDUCE YOUR CONCEALED DAMAGES?
1. Let your customers know not to let the driver go before inspecting the product not all clients especially residential clients understand to inspect the package, this includes checking all sides and opening the box in front of the driver.. (They also may not realize the likelihood of concealed damages getting denied, they also may not realize that although the driver may want to leave right away the world will not end if they take 2 minutes to inspect the package) We have found that either sending a letter or placing a placard on the shipment that tells them to inspect the product works best.
Step 2. Tell your clients to specifically note on the BOL any signs of damage, make sure that they put clearly in writing what they observe, example 1 piece missing, or crate had a puncture through it etc.
Step 3. Instruct your clients that they have the right to refuse the product if it is damaged beyond repair, again inform them to notate everything on the delivery receipt
For more information or for a sample letter/placard please visit our website www.pnglc.com please forward your inquiries to email@example.com or give us a call 877-764-9441