Shipping Auditing Best Practices to Reduce Chargebacks

Shipping Auditing Best Practices to Reduce Chargebacks | LoadProof

This is a best practice that you can refer to if you have a lot of quality issues in your distribution center. Let us assume that for some reason you opened up the box from reserve. You thought that everything was okay at the time of receiving. Then you put it away in reserve and for replenishment you moved the product from reserve to active location. After opening up the box you find that there are quality issues.

Sometimes during the picking stage they pick the product and they find some defective products or torn apparel. So you realize that you got to have a good quality process even before the picking process because what happens is typically as the shipment hits your receiving dock you can sort the product by PO or sort the product by SKU. After sorting you will do the receiving process and then you will do the verification process of the shipment. Verification of the shipment basically says whether you have done verification that means you have completely received your shipment and everything is good and as soon as the verification is intact and complete. The vendor then gets paid so from the DC perspective you are acknowledging that the shipment looks good. And later if you find issues then you have to absorb the cost of the defective product. Let’s say this same scenario is what happens a lot in your DC, then you would want to institute a quality process. There are two types of quality processes. There is quality inspection and quality audit.

The quality inspection is relatively simple. There is another benefit of having an ASN and when you have an ASN you can set up quality inspection percentage. You can even predefine like whenever there is a shipment from a particular vendor you want to do 10% quality inspection or 5 % of quality inspection or to skip the inspection, because this vendor does a fantastic job and You do not want to waste any time inspecting that product. Otherwise You could do only 50% quality inspection, because let’s say this is one of the rare vendors or they pay, they handle or they supply you with some prior SKUs. But still the quality of the production SKUs is not so good so you want to inspect.

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