What are Warehouse Freight Claims and How Should You Avoid Them

What are Warehouse Freight Claims and How Should You Avoid Them | LoadProof

This is another interesting dynamic on LoadProof. The managers that we talked to, they hear about our product and “they’re like wow this is great, want to take advantage of this product in my distribution center or warehouse. They join the demo and one of the things we ask is how much is their chargeback. At the time they don’t know it’s just sometimes fascinating to see this dynamic.

The organizations that have been operating all along they’re so siloed. They’ve so siloed and this warehouse manager, he’s operating a pretty good-sized facility. It was like 400K plus a squad for DC shipping, a lot of orders. This gentleman didn’t know about the chargebacks because it’s just that’s how they’ve been operating all along. The chargeback was something that was with the finance department, I mean obviously retailers when they pay the invoices they don’t pay the full invoice, they automatically take a portion of that because of these damages or this chargeback situation. It took awhile for him to find out that number from the finance department because that was not available there. He was all about “hey I want to incorporate all the best practices for our operations I want to make users accountable and I don’t know how to hold them accountable”. I want to help him run a great organization, I have seen operations guys when they publish a report saying “look at the number of orders that were fulfilled, this is the accuracy and this is how efficiently we did it.

It’s like a status report they publish to show the rest of the organizations that they did their job great. This gentleman wanted to do it and I mean it’s a great idea. He wanted to show everyone in his organization that he and his team did a great job, but unfortunately he didn’t even have that chargeback number. In an ideal organization you want to check if there is a chargeback and see whether it is because of damages or because of some kind of a compliance situation.

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