Rejection is terrible, no less when it involves palletized freight in fast-moving supply chains. And if you are experiencing those feelings, you are not alone. According to DAT Freight & Analytics, up to 12% of all deliveries are rejected or delayed by the receiver for varying reasons. In this blog, we look at common reasons for load rejection, including pallet compliance, followed by considering the direct and indirect costs. Finally, proactive steps are outlined to help ensure that your loads get the acceptance they deserve. Let our therapy session begin!
Reasons for Load Rejection
Load rejection refers to the receiver’s refusal of goods or materials, a scenario that can disrupt the flow of the entire supply chain. Efficient material handling in modern facilities requires predictable loads that meet the receiver’s requirements. When a receiver encounters deliveries that do not conform to company requirements, the result can be delay or rejection, not to mention the headaches that result.
There are multiple reasons why a receiver might reject a load:
- Damaged Goods: If the products are found damaged on arrival, they may be rejected. This could be due to inadequate packaging, rough handling during transportation, or other logistical issues.
- Incorrect Quantity: Too many or too few items can result in rejection. Accurate inventory management is crucial to prevent such discrepancies.
- Late Deliveries: In a world ruled by tight schedules, a late delivery can render goods useless, especially if they are time-sensitive, like perishable items or those needed for specific events or promotions. At a minimum, late arrival can leave your goods waiting in limbo until the receiver has an opening to receive them later.
- Quality Control: If the goods do not meet the required quality standards or are found to be defective, they might be turned away. In the case of perishable goods, temperature range violations are closely monitored. Quality control also can pertain to packaging and pallet quality. Many companies have pallet compliance policies that must be met.
- Incorrect Documentation: Customs paperwork, import/export documentation, or other mandatory paperwork, if incorrect or incomplete, can result in load rejections.
- Mismatched Orders: A rejection is likely if the delivered items don’t match what was ordered.
Direct and Indirect Costs
There are a range of direct and indirect costs associated with rejections. Consider that the shipper will bear the cost of returning the rejected load and then redelivering it. Additionally, the rejected load may need to be stored, reworked, restocked, or written off, which all adds cost for the shipper.
But then add the indirect costs. An unexpected load rejection can result in a lull in the receiving schedule and underutilized hours, not to mention potential disruption to manufacturing in a production plant or in lost sales for retailers. For the shipper, repeated rejections can harm the shipper’s reputation and damage their brand. Beyond these concerns and inevitable administrative hassles, rejected loads can have negative ripple effects. A single load rejection can affect various other components of the supply chain, causing delays, financial losses, and operational inefficiencies downstream.
Best Practices to Eliminate Load Rejection
Best practices for eliminating load rejection start with a firm understanding of customer requirements. Maintain open communication channels with receivers to ensure they are informed about any changes or delays. For example, changing box size and ti-hi might not seem like a big deal for you, but it can create havoc for the receiver without being notified prior. Here are some other basics:
- Quality Assurance: Ensure that goods undergo thorough quality checks before shipping.
- Inventory Management: Use advanced inventory management systems to ensure correct items and correct quantities are shipped.
- Accurate Documentation: All paperwork should be double-checked for accuracy and completeness.
- Effective Packaging: Invest in sturdy, protective packaging to minimize damage during transit.
If you are experiencing packaging-related concerns, consider contacting our leading unit load packaging testing service. Pallet compliance can be another critical variable; sometimes, understanding the customer’s pallet requirements can seem complicated.
Rejection is not an insurmountable challenge and should not be a recurring problem. By understanding its causes and effects, shippers can implement best practices to minimize or even eliminate load rejections, ensuring smooth and efficient supply chain operations. And finally, if you need help navigating product damage, unit load optimization, or the pallet specifications your customers require, why not reach out to PalletOne’s national sales team? Our PalletConcierge™ service is a one-stop shop for all your unit load needs. We can help ensure your pallets are warmly welcomed.
