KNOWLEDGE Base CONTENT PARTNERS
Freight Damage: The Claim Is Only a Fraction of the Cost
Most companies measure the claim. The smartest companies measure business impact.**
E very damaged shipment has a claim value. That is the number most transportation providers focus on. But the claim is only the beginning. When replacement product, expedited freight, labor, customer dissatisfaction, and lost business are included, the true nancial impact can be several times greater than the original claim. Do You Follow the Money? The claim rarely tells the whole story. For one customer, annual freight damage looked like this:
ripple extends into customer con dence, sales productivity, operations labor, warehouse ef ciency, brand reputation, repeat business, and working capital. Companies that track only the claim are measuring a fraction of the problem. Do You Plan for Prevention? Damage prevention isn’t luck. It’s process. High-value products require more than transportation. They require disciplined execution at every handoff. CRST Specialized Solutions delivers with: • Two-person delivery teams • White-glove service • Blanket-wrap protection • Liftgate delivery
shipment. Every provider can quote a freight rate, but very few can quantify the nancial value of preventing damage. High-value supply chains are not built around moving freight cheaper. They are built around reducing risk, protecting customer relationships, and lowering the total cost of doing business. Damage Doesn’t End at Delivery The freight claim is often the smallest expense. The real cost is everything that happens after the damage occurs. When damage isn’t an option, neither is ordinary transportation.
Cost Category Freight Claims
Amount $250,000 $100,000 $50,000 $75,000 $40,000 $150,000 $ 60,000
• Inside delivery and placement • Trained delivery professionals • Reduced handling and touchpoints
Replacement Product
Expedited Replacement Freight
Every step is designed around one objective: **Deliver it once. Deliver it right.**
Claims Administration
Billing & Cash Flow Delays
Which Costs More? The choice was never between
Customer Churn
Sales & Account Management Time
spending and saving. It was between a modest, predictable investment in the right transportation partner and the unpredictable, compounding expense of getting it wrong. The lowest transportation rate is not the lowest total cost. Executive Perspective Transportation should be evaluated on total cost of ownership, not cost per
Operational Labor
$80,000
Total Annual Business Impact**
$855,000
–By Beth Olivares
**Every $1 in freight damage created $3.42 in total business cost.** Do You Budget for Claims? Freight damage affects far more than a line on a claims report. The nancial
CRST Specialized Solutions is a proven leader in damage-free handling, providing white-glove blanket-wrap truckload, scheduled LTL, and reverse logistics services. The company simplifies and manages complex projects, from national rollouts to equipment installations, while delivering comprehensive supply chain solutions that include inventory management and warehousing. It develops customized solutions tailored to each customer’s unique business needs.
Vice President of Sales CRST Specialized Solutions Sales@CRST.com CRST.com/specialized
July 2026 • Inbound Logistics 37
Powered by FlippingBook