you may also enjoy
When a shipper gets an automated notification from a carrier that says the load was delivered, they might feel at ease. Unless, of course, there's a problem with the load. Sometimes loads get damaged while in transit. There is also the chance of product shortage or items missing from the BOL. Regardless of whether a load gets delivered on time with clean bills, or if there is an issue, shippers need oversight and can use OSD reports to ensure they get the right information.
The OSD meaning can be confusing. An Over, Short, and Damaged (OSD) report provides shippers with data that tracks damaged or miscounted loads. When a shipment has an overage, there are more items than documented, whereas a shortage explains there are fewer items than intended. A damaged shipment involves any shipment that arrived at its destination with obvious or concealed damaged.
The OSD report is essential to gaining access to actionable analytics within the transportation network. As noted by The New York Times, the International Monetary Fund cited, "Supply chain woes among other factors as it downgraded its forecast for global economic growth for 2022 to 4.4 percent from 4.9 percent. In a recent survey of over 3,000 chief executives [...] fewer than half said they were taking longer-term action to alleviate supply chain challenges, while a majority said they were relying on short-term measures. Regardless of their approach, more than three-fourths of chief executives were skeptical that their plans would prove effective." Whether carrier damage or warehouse miscounting is frequent, shippers of every size must consider the value of pursuing effectiveness and resiliency from OSD report data.
In freight accounting, an OSD report is used for processing damage claims. However, all shipping specialists should bolster their OSD report processes to understand their OSD risks. Here are ten steps to get started.
Anomaly detection is crucial to effective delivery tracking and reporting. Without reviewing the data, shippers might miss obvious mistakes or disruptions. Even the naked eye can see opportunities for immediate change with the right OSD report insight. OSD reports can help discover damaged delivery patterns occurring with the same carrier or warehouse. From there, shipping managers can immediately respond to address the people or entities involved in repetitive delivery failures.
It's vital for shippers to maintain a record of all past shipper performance report methods in order to compare to current data. By pulling a history of OSD reports, shippers can analyze past trends and check current performance more accurately. Shippers can then actively change strategies at the earliest hint of falling back into familiar miscounting patterns that damage sustainability initiatives through wasted time and capacity.
Collaboration is key to logistics. It is helpful to share the findings of OSD reports with other team members, whether working with local employees, or an international parcel shipping 3PL. Doing so keeps everyone in the loop, and equips all team members with the direction of what to keep an eye on. In addition, while some may consider publicizing a shipper performance report as a vulnerability, companies who receive different perspectives on these reports get fortifying insight that could otherwise be missed.
Business logistics professionals know that predictive planning is centered around the ability to receive an abundance of data. Managers can useOSD reports for predictive planning which allows shipping managers a better perspective on potential issues in their current operations. This allows them to make decisions that can reduce the impact of those potential issues.
Some OSD report examples include damages due to weather, loss-related claims, or even overage versus shortages. Separating into these categories can even provide insight to the OSD categories that experience the most freight invoice errors, therefore correcting another vital business operation.
Communication between supply chain parties is vital for operational functionality, cost-saving measures, and optimum customer experience. Shipping companies achieve this by leveraging modern technology to automate real-time notifications and report generating. Real-time communication minimizes OSD risk with direct guidance.
In recent decades, automation has helped shippers in a variety of ways. For example, many times simple tasks are not automated for a simple lack of understanding how it works. By breaking through this barrier, shippers can experience more efficient, automated management where automation reads OSD warning signs and can generate reports that get to decision makers before an inaccurate or damaged order makes it to the customer.
The evolution of tech arrived at just the right moment for a workforce stretched thin by an overwhelming workload. Yet, sometimes a tech stack can grow so high it complicates the ability to see data clearly. By streamlining logistics into an integrated system, shipping companies can put the most comprehensive amount of data into their OSD reports and thus receive the best visibility into their loads
Some of the problems that shipper's experience with their loads can be minimized by equipping their drivers with the right software. Communication between drivers and shippers is important to provide feedback, and relay product miscounts or unsafe packaging. Doing so can even minimize additional freight charges accumulated by excessive work or unavailable tools for the driver.
Ultimately an OSD report is more than just a history of past mistakes, it's an opportunity to plan for the future and change strategies to avoid potential problems with inventory or invoices. This concept applies to any shipper performance report available. Shipping companies can mitigate risks through data, by analyzing their OSD reports.
In logistics, mistakes happen. Shippers can prepare generation by steaming all data points through a single platform. A streamlined process prevents logistics mishaps that can occur from missing data, Intelligent Audit's business intelligence tools and advisory services stand out among competitors as a tech-rich solution that can guide shippers an effective business productivity through machine learning-enabled data streaming. If you're a shipper that is ready to get some answers from their OSD data take the first step and start a conversation with Intelligent Audit today.
Set up a call with one of our experts to discuss how Intelligent Audit can help your business uncover opportunities for cost reduction and supply chain improvements through automated freight audit and recovery, business intelligence and analytics, contract optimization, and more.
