It costs businesses a lot of money when warehouse stock gets damaged. Insurance can cover the financial value of the stock, but probably will not cover any trade lost as a result of stock being unavailable.
There are several areas that need attention in order to minimise stock losses.
Poor quality or badly maintained pallet racking can cause stacked stock to be unstable. Racking and warehouse shelving should be regularly inspected so that it meets the standards of the Speciality Equipment Market Association. Replace damaged pallet racking with new ones.
Every warehouse needs a safe loading practice and goods should never exceed safe working loads.
Fire and floods can cause damage, so companies need to carry out a Fire Risk Assessment. If the warehouse is in an area that is liable to flooding, then make sure that important or high value items are stacked on higher shelves.
All staff, whether permanent or temporary, need health and safety training, especially employees using forklift trucks that could damage stock.
Another reason for losing stock is crime. Businesses need to have security procedures in place that minimise the chances of goods being stolen by staff or visitors. High-value items, particular small ones, need to be stored in mesh cages with lockable gates.
Another potential risk of stock damage is from rodents. Rats and mice can eat through boxes or even cause fires by cutting electric cables.
By taking sensible and practical precautions, warehouse owners can minimise the risks of damage and stock losses.