Evaluate protection against observed damage cost

Connect observed packaging damage, net incident losses and protection costs to compare changes and calculate the required reduction in damage.

Work through the task

  1. Compare incident counts using matching shipment denominators, observation periods, product mix and routes. Record net incident loss after documented recoveries.
  2. Calculate consumption or geometry before assigning cost. Keep fixed charges, rounding and unused inventory visible.
  3. Confirm equivalent specification and scope, then use the category comparison or complete packaging BOM to compare supplier offers.

Tools for this job

A worked example

Across 10,000 shipments, a one-point reduction at EUR 40/incident avoids EUR 4,000. EUR 0.15 extra protection plus EUR 500 setup costs EUR 2,000, leaving EUR 2,000 net benefit.

Use your supplier specification and quotation. These numbers demonstrate the arithmetic; they are not market prices or a packaging suitability assessment.

Checks before you decide

  • Shipments in explicit period
  • Observed damaged shipment fraction
  • Net loss per damaged shipment