Warehouse Damage Reduction

Abstract

When a seller’s unit is damaged in an Amazon fulfillment center, we reimburse the seller if certain conditions are met. We take the damaged unit and replace it with reimbursement in the amount the seller would have received if they sold the unit. In order to maintain the seller’s inventory balance at a net zero, a Sellable unit is subtracted and an Unsellable unit is added. On the eleventh day after a unit is flipped into warehouse damaged condition, and as long as the unit is still present in the seller’s inventory, a Warehouse Damage Auto RMS will generate. If the value of the RMS is above a certain value, a ticket will automatically be cut to the Warehouse Damage Auto CTI. In order to reduce these losses there are certain SOPs, SJIs and processes kept in place to ensure that the WHD generation is reduced to the minimum extent possible. But there are still some things that sometimes escapes the current practices and leads to WHD generation this project has the objective to fill these gaps in SJIs, SOPs, and processes.