Sonoco Releases Cost of Damage Calculator
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The Protective Solutions Division of Sonoco, Arlington Heights, Ill., USA, a provider of protective packaging, components, and material handling solutions, has released its Cost of Damage Calculator, an online tool designed to calculate the real cost of damage to businesses when shipping their products.
With packaging an essential part of the supply chain, determining how best to ease risk for product damage throughout the entire process is paramount. The calculator successfully breaks down the customer’s e-commerce and retail damage to show the percentage of damage, number of units, total cost, and the percentage of profits this affects.
"With many companies only using reports on the number of units returned and replaced, we wanted to accurately calculate the cost of damage due to ineffective packaging, looking at the whole picture," said Jim Lowry, director of new business development for Sonoco Protective Solutions. "When a company truly looks at the total cost of dealing with damage, including not only product replacement, but also shipping, handling, customer support, freight both ways, loss in profits, etc., they might find the original packaging decision may have not been the right one after all."
More information about the Cost of Damage Calculator is available online.
