Concealed Damages; Asking Customers to Help Reduce Them

Concealed damage is a huge topic amongst customers I visit.  Manufacturers and distributors whose product line is susceptible to damage seem to be obsessed with it.  Their biggest gripe is how they feel they are defenseless against freight claims because the hidden damage was not discovered until after the consignee received the freight. 

“Complain away!” I tell them.  I completely empathize with their frustrating because a lot of it is out of their hands.  What is maddening for these shippers is their customer will receive the product and days, sometimes weeks, later they open up the order and find the damage.  That is when the shipper gets a call from the customer and they are stuck between a rock and a hard place.  The carrier is off the hook because the damage was discovered after the shipment has been received with a clear delivery receipt and the shipper has to make his customer happy by refunding or replacing the damaged product. 

But shippers that have to deal with concealed damage are not completely defenseless.  There are some things that can be done.  Imploring help from customers is one way I have seen with very effective results.

Several years ago, I had a customer that came up with a brilliant solution that drastically reduced the amount of freight claims and instances of concealed damages.  This solution was to send a simple letter to their customers asking for their assistance in fighting against freight damage.

In the case of my customer, they were shipping products via less-than-truckload carriers to trade contractors who had zero knowledge of how to properly receive a shipment.  Damages were a constant, everyday occurrence. 

Their solution was really ingenious.  What they did was when an order came in; they would send a notification out that day that would basically let their customers know that their order was being shipped. 

In the letter they would explain to their customers that due to the nature of their product, it was easily damaged in transit even with their significant investment in packaging.  Then they laid out a simple three step process how their customer could help lessen the likely hood of any problems.

Before this process, this shipper had almost every claim denied because all of the delivery receipts indicated a clean delivery.  As many of your reading this may know, a carrier will fight any claim to the death if there is a clear delivery receipt.

But in this instance, the shipper outlined how to notate any damages or dings on the receiving document.  The letter explained to thoroughly inspect all sides of the product and to open it up right away.  It also told them out to write the specifics of what they found on the carriers copy of the delivery receipt.

The end result was hilarious!  All of these plumbers, electricians and carpenters where holding up drivers and marking up these delivery documents.  Carriers were in a position where they were forced to pay claims and intern started to handle the freight more gingerly.  The once big concealed damage issue and revenue vacuum became a small problem that came up once in a while.

This is a fun story I like to tell other customers of how making a small extra step can make a big difference.  The moral of this story is good.  This is a great idea for any shipper with easily damageable products to follow. 

KEYS TO MAKE THIS WORK

1.  I believe the main reason this worked so well is because a physical letter went out to the customers.  An email just does not have the same effect.  Something about getting something in the mail lets the customer know that this is something they should pay attention to.
2. The second thing was the shipper basically informed the customer of the damage issue that they have to deal with because of the nature of their product.  This made the customer stay on alert. 
3. The third thing that made this effective was that the shipper asked the customer to help them out.  I believe customers are willing to help  if they are simply asked to.
4. The final key piece to this whole thing was they outlined in a simple three step process exactly what they wanted the customer to do.  Keeping it to three steps just tells the customer that it’s easy as 1-2-3 to do.  I know I just gave you four steps.  But my fourth step is really not a step! 

SAMPLE LETTER

This is not the exact letter my customer drew up, but this has the same theme.  Feel free to use it or parts of it.  You have my permission!

Dear Mr./Mrs. Customer,

I would like to thank you for choosing us to order your products with ABC Company!  Due to the sensitive nature of our products, I would like to ask your help in making sure the delivery your order arrives safely. 

We have invested in some of the best packaging and safe freight carrier partners to ensure the best delivery possible.  However, even with our efforts, there still can be damages. 

To ensure a safe arrival we ask that you follow a simple three-step process while our product is being delivered:

1. Before you sign the carrier’s copy of the bill of lading, please thoroughly inspect the shipment for any signs of damage.
2. Specifically notate any signs of damage on the bill of lading before you sign it.  Even if there is no clear place to write these notes down, just make sure it is somewhere visible on the bill of lading.
3. Refuse the product if it looks like the product is beyond repair, notating all damage on the delivery receipt. 

Please contact us right away at (800) 555-5555 if there is damage so we can exchange any parts of the product or replace the entire order. 

Thanks again for your business!

Sincerely yours,

Joan Smith
Customer Service Supervisor

*If you do send this exact letter, make sure you have an arrangement with your carrier if your customers do refuse freight.  

Freight damage can be a huge burden for a shipper, costing thousands of dollars and aggravating scores of customers.  But sometimes it is adding a simple extra step or just asking for a customer to help out can all but eliminate the problem.  This is one solution that has a proven track record.