How does movement in transport (MIT) impact your bottom line?

Movement in transport is a serious issue, particularly in industries which deal with large volumes of liquids, such as beverage manufacturers. We have seen how this can end up costing businesses significant amounts of money and in this blog we will break down where these unnecessary costs come from.

Damaged Goods

Movement is the leading cause of product damage during transit. As goods shift this can cause edge crushing and layers to collapse. We have also seen extreme cases where pallets have toppled completely which not only causes extensive damage to the subject pallet but also to any pallets it has fallen on.

Any products that have been damaged as a result of movement in transport will have to be written off as they cannot be sold and if the product has arrived at the customer damaged, they are likely to reject the load and request it to be reshipped or refunded. In addition, many companies we have worked with in the beverage industry have explained that if product damage has caused spills which have leaked into the rest of the pallet, the whole pallet has to be rejected and disposed of. Therefore, it is easy to see how the loss of damaged goods can be a significant cost to businesses.

Rejected Goods

As mentioned above, if a load arrives at a customer damaged, they are likely to reject it. However, oftentimes customers will even reject loads that have no obvious damage but are unstable and have shifted during transit due the hassle of unloading and safety risks. This is especially common when goods are being delivered to an automated warehouse as unstable pallets can cause serious problems. We have also seen some cases where entire truck loads were being rejected as a result of a few unstable pallets in that load.

There is a few costs associated with rejected goods for example the is the loss of sales. Further costs include the cost of bring back damaged loads and reshipping goods. Any goods rejected by the customer have to be returned to your site(s) which incurs a cost. Furthermore, some of our customers have explained that one of their biggest problems is that trailers returning with problem loads are often parked up and left for extended periods of time due to the hassle and time required to unload them. This means there is less trailers in their supply chain available to deliver goods which will potentially limit output. The customer will then expect any rejected goods to be replaced meaning the additional cost of reshipping.

Repacking Charges And Fines

Many companies, such as large supermarket and retail chains, charge their suppliers a repacking fee for any pallets that arrive at their distribution centre and have to be repacked because they cannot be moved around and store safely. Some distribution centres also enforce a fine for damaged or unstable pallets due to the trouble they cause and the time it takes to deal with them. For companies experiencing high numbers of movement in transport occurrences this can be a large cost.

Conclusion

Movement in transport is a very expensive issue but more than this, it is an unnecessary cost because it can be solved. The list above is by no means comprehensive; however it includes all the costs we have found to be the most significant through our work in the industry.

If you are having movement in transport issues, then check out our guide to pallet stability or get in touch with our packaging experts who will be able to advise you on how to remove the risk of unnecessary costs.