How to manage the cost of damage that occurs at the time of dispatching shipment from the supplier to the customer?

When the shipment received at the Warehouse in a Damage position there are below criteria

Ispection Proess : Good checked physical  , pictures taken for damages

Insurance goods : When the stock received in damage it is claimed from Insurance Company.

Goods Received in Damage Report  (GRDR) prepared 

GRDR Submitted to Insurance Co.

Follow Up

Claim Received.

Be proactive rather than reactive! 

It all begins with you selecting the right suppliers from the beginning and how you define your reverse logistics with them ( plan B). A number of key factors should be considered in the supplier selection and evaluation process; including certifications and registrations such as TQM, Six Sigma, and ISO. 

In addition, here are few steps to minimize this problem :

 1- set your level of service standards and ALWAYS measure your suppliers performance. 

 2- Make sure your suppliers understand your guidelines and procedures of packaging the shipments.

 3- Shipments must be in a container that is RIGHT for the content. 

4- In the contract, you must define ''who is responsible for what'' in this kind of situation. In my opinion, the supplier should be responsible for the cost associated with this mistake, that if you don’t lose the customer and the sale all together!!!!

The damages can be minimized through following steps:

Monitoring and reporting of damages

Staff training on product handling

Use of appropriate vehicle type

Use of proper MHEs

Use of proper stacking schemes 

I think the question should be how to step yourself away from damages in costs. Expectations for every step should be taken in consideration

Since the damage occurred at the time of dispatching the shipment from the supplier to the buyer/customer, under the INCOTERMS it must be assumed that once the supplier has successfully delivered the goods to the premises of the buyer, the risk that comes with goods shall now be transferred from the supplier to the buyer, therefore starting from the unloading/dispatching of the goods from the carrier or factory of the supplier depending on the incoterm agreed upon, the buyer/carrier/forwarder/insurance now bears all the costs that will accrue upon the shipment if any damage or losses may occur upon the shipment which can also be determined on the incoterm used.

The customer has to make sure to always insure his cargo prior shipping

Concentrate first on a suitable insurance cover.  If the  loss/ loss ratio is high the premium will be expensive.

Consequently closely monitor the entire dispatching process and work on a (risk) assessment report then find the suitable functional control based on ur assessment.

Goods when delivered to customers should match with the beginning form of the product. For this 

Proper training of employees should be conducted 

Packing should be in good standards

Vehicles for delivery should be in sound conditions

Goods should be insured 

this is completely depend on the supply chain from picking loading till delivery everything in the hands of labor  

SOP to be followed  and below are some of the actions to be taken on every  stock dispatch.

Prevention of Cost damage starts from the time the stocks been received in the warehouse and dispatched to cusotmers, hence stocks handling with care is important everywhere. In particular while dispatching it is to be ensured, first documentation is clear and approved,  only the stocks good in condition were rightly picked for delivery is as per the customer order, packed in carton / pallet with filling materials as recomended and properly closed and covered, right mode of transport recommended, Cover stocks propelry  to protect from Sunlight, Rain and Dust,  Stack cartons and pallets as per the  norms.

always follow correct packaging, regardless of extra cost,

can hire skilled labor to load and off load the merchandize,,

always insured your shipment to recover the cost or minimize the cost of damages.