Dealing with Damaged Goods

Dealing with damaged goods is a complex matter.   When there are damaged goods, the logistics office has a responsibility to do five things:

  1. Separate the damaged goods from normal goods.
    1. Recondition (re-package) as much as possible of the damaged goods.
    2. Immediately record (in Ledger, Stock/Bin Cards, etc.) how much is damaged, and how much you were able to recondition.  A recondition report can be found here.
    3. Move the damaged amounts to a separate location.  If they are food commodities, make sure they are in a place where the damage cannot spread.
    4. If the commodities are food, make sure to use the reconditioned items first, before you use any other amounts in the warehouse.
  2. Report the damage to the stock owner and to the donor.

    As soon as you have taken the steps above, notify the stock owner and discuss who will notify the donor.  Usually the responsibility and rules for loss or damage reporting are in the grant’s rules. 

  3. Investigate the damage in order to assign responsibility.

    Identify the following:

    1. Who had the commodities when they were damaged?
    2. What is the type and quantity of the damaged commodities and size and type of containers they were in?
    3. What is the estimated value of the damaged amount?
    4. When and where did the damage happen, and where are the goods now?  
    5. What is the project number, the grant or award number and the CCC contract number (if known)?
  4. Claim reimbursement for damages from responsible parties and use the damage payment according to pre-defined rules, set by CRS or by the donor.

    Whether or not the donor requires that we claim damages from responsible parties, CRS has the stewardship responsibility to ensure that any loss or damage which occur as a result of negligence or wrong-doing is claimed against responsible parties. This is applicable whether or not the responsible party is an individual staff or contractor, a partner organization, or a third party not associated with CRS in any way. The only conditions where CRS would not pursue a claim for loss or damage is if there is evidence that pursuing a claim would cause more damage than good, or cost more than the claim is worth, and if the donor approves not to pursue the claim.

  5. Dispose of the damaged goods responsibly.

    CRS must dispose of all damaged (and expired) goods in the most transparent, cost-effective and environmentally responsible manner. We must make sure that the goods cannot cause any harm to the environment, people, or animals; either now or in the foreseeable future.  It is important that you are very careful, and have the disposal overseen or organized with the help of professional entities.  Check with local government, if appropriate.

    You must ensure that the disposal is documented (with photos) and that you give a formal report to the donor.