Damage to goods

Damaged merchandise
Risk of damage to stock

Nature

The retailer, wholesaler, manufacturer and customer lose from having merchandise damaged. Goods can be damaged by vandals or disgruntled employees, by accidents or by acts of nature.

Incidence

Damage to goods is a significant issue affecting various sectors, with estimates suggesting that global supply chain disruptions lead to losses exceeding $1 trillion annually. In the retail sector alone, inventory shrinkage, which includes damage, theft, and loss, accounts for approximately 1.4% of total sales, translating to billions of dollars in lost revenue. Geographically, regions prone to natural disasters, such as hurricanes and floods, experience heightened incidences of goods damage, impacting local economies and supply chains.
A notable instance of damage to goods occurred in 2020 when Hurricane Laura struck Louisiana, USA, causing extensive destruction to warehouses and retail outlets. The storm resulted in an estimated $12 billion in damages, with significant losses reported in the agricultural and retail sectors due to ruined inventory and disrupted supply chains.

Claim

Chipped dishes never break.

Counter-claim

Damage to goods is often overstated and should not be considered a significant problem. In a world where consumerism thrives, minor damages are merely a part of the purchasing experience. Businesses adapt and innovate, often using these incidents as opportunities for improvement. Focusing on trivial damages distracts from more pressing issues like sustainability and ethical production. Let’s prioritize meaningful challenges rather than fixating on the occasional scratched item or dented box.