OS&D

Machine Vision Takes the Guesswork Out of OS&D

November 3, 2022  |  Kargo  |  3 min

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WHAT YOU NEED TO KNOW

Overages, shortages, and damages (OS&D) can occur at any point in the supply chain. When these discrepancies are caught, your company may have some explaining to do. Even with a good explanation, you may end up paying. 

Without visibility, there is no way to know what really happened, and in some cases, paying a claim is smarter than pointing fingers.

But as supply chain visibility advances, machine vision can resolve OS&D uncertainty. If you’re paying freight claims without proof, new technology can reveal an updated reality about who’s responsible for what.

For more on how Kargo resolves exceptions, email info@mykargo.com

New Ways to Resolve OS&D

Machine vision lets you improve OS&D processes in two significant ways:

  • Catch exceptions in real time
  • Access visual proof of events

In tandem, these benefits can expand visibility across shipping and receiving, resulting in greater accuracy and reduced payouts for OS&D claims.

Catch OS&D in Real Time

If you want to limit your OS&D liability, catch exceptions as soon as possible:

  • When shipping, this means ensuring accuracy as freight leaves the warehouse. 
  • When receiving, it means flagging issues before freight enters.

Machine vision provides assurances by combining advanced optical systems with computer vision algorithms and models.

For example, Kargo Towers use computer vision to see, record, and interpret freight data automatically at warehouse loading docks.

If OS&D is present, the towers indicate an exception with a flashing light pattern. In the Kargo Platform, you’ll see the exception as soon as it’s caught at the dock. 

With exception management available in real time, your company can catch OS&D as early as possible—before you have to pay for it.

Access Visual Proof

The ultimate way to protect your company from inaccurate OS&D claims is to provide visual proof of events.

Typically, companies rely on manual inspections to compare freight against the bill of lading. Machine vision overcomes the risks that come with manual inspections by automating freight verification and backing it up with media libraries of shipping and receiving events.

In your media, you can discover images and videos that show your warehouse staff loading and unloading goods in real time.

Even in instances where signing the bill of lading may have transferred title to freight, visual proof may be able to protect you from paying for OS&D events you didn’t cause.

Improve Partnerships

When there's certainty around OS&D, you can build better relationships with partners.

Visual proof is a surefire way to reduce friction around claims and investigations:

  • When your partners can see shipping and receiving events as if they were there, it corrects misperceptions that may impact relationships.
  • In the Kargo Platform, you can discover OS&D trends that could point to opportunities for improvement.
  • During negotiations, you can point to irrefutable OS&D data to inform and strengthen your position.  

The recent advances in logistics visibility make it easier for everyone to deal with OS&D. For more on how you can resolve claims and reduce payouts with Kargo, request a demo.